Real Estate Finance Chapter 3 Solved
Exam Questions and Answers (Complete
Practice Papers)
Private Party Lenders - Correct Answers ✅Person lending
directly to another person
Direct Private Lenders - Correct Answers ✅Eliminates the
go-between broker. High risk, high reward
Indirect Private Lenders - Correct Answers ✅Private
individual place money through mortgage brokers. Broker
takes borrower and lender and puts them together
Sellers as Private Lenders - Correct Answers ✅"carrying
back a loan." = difference between down payment + new
loan and the sale price. Carry back loans are exempt from
usury laws--> sellers can charge any interest rate they wish
Free Clear and Clear Property - Correct Answers ✅Property
free of any loans
Junior Encumbrance - Correct Answers ✅
Second Trust Deed - Correct Answers ✅
Usury Law - Correct Answers ✅California Maximum rate for
loans secured by real property is the greater of 10% or 5%
, Real Estate Finance Chapter 3 Solved
Exam Questions and Answers (Complete
Practice Papers)
above the Federal Reserve Bank of San Francisco discount
rate, unless the lender is exempt rom the law.
Exempt--institutional lenders, mortgage companies, industrial
loan companies,c edit unions, etc. and any transaction that
uses a broker.
Mortgage Bankers - Correct Answers ✅Incorporated
businesses that can make loans with their own funds or
through a line of credit. Frequently service the loans of the
lenders they represent
Mortgage Correspondent - Correct Answers ✅A mortgage
banking company which represents a life insurance company,
bank, thrift association, pension fund, or other lender
Mortgage Loan Brokers - Correct Answers ✅Locate
borrowers and lenders and arrange loans between them.
Subprime Loans - Correct Answers ✅granted to
homeowners with low credit scores who witched to purchase
or refinance a home. Granted at higher interest rates and
fees. 2-3 year terms.
Real Property Mortgage Lon Broker Law - Correct Answers
✅Requires prospective borrowers be supplied with complex
loan information. The broker must provide the applicant with
Exam Questions and Answers (Complete
Practice Papers)
Private Party Lenders - Correct Answers ✅Person lending
directly to another person
Direct Private Lenders - Correct Answers ✅Eliminates the
go-between broker. High risk, high reward
Indirect Private Lenders - Correct Answers ✅Private
individual place money through mortgage brokers. Broker
takes borrower and lender and puts them together
Sellers as Private Lenders - Correct Answers ✅"carrying
back a loan." = difference between down payment + new
loan and the sale price. Carry back loans are exempt from
usury laws--> sellers can charge any interest rate they wish
Free Clear and Clear Property - Correct Answers ✅Property
free of any loans
Junior Encumbrance - Correct Answers ✅
Second Trust Deed - Correct Answers ✅
Usury Law - Correct Answers ✅California Maximum rate for
loans secured by real property is the greater of 10% or 5%
, Real Estate Finance Chapter 3 Solved
Exam Questions and Answers (Complete
Practice Papers)
above the Federal Reserve Bank of San Francisco discount
rate, unless the lender is exempt rom the law.
Exempt--institutional lenders, mortgage companies, industrial
loan companies,c edit unions, etc. and any transaction that
uses a broker.
Mortgage Bankers - Correct Answers ✅Incorporated
businesses that can make loans with their own funds or
through a line of credit. Frequently service the loans of the
lenders they represent
Mortgage Correspondent - Correct Answers ✅A mortgage
banking company which represents a life insurance company,
bank, thrift association, pension fund, or other lender
Mortgage Loan Brokers - Correct Answers ✅Locate
borrowers and lenders and arrange loans between them.
Subprime Loans - Correct Answers ✅granted to
homeowners with low credit scores who witched to purchase
or refinance a home. Granted at higher interest rates and
fees. 2-3 year terms.
Real Property Mortgage Lon Broker Law - Correct Answers
✅Requires prospective borrowers be supplied with complex
loan information. The broker must provide the applicant with
