Real Estate Finance 451 Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
______________typically aim to build commercial mortgage loan portfolios that are diversified by
property type and geography as well as in accordance with applicable investment guidelines. -
CORRECT ANSWER life insurance companies
____________________are member-owned, not for profit financial cooperatives that provide savings,
credit, and other financial services to their members - CORRECT ANSWER credit unions
what is an independent contractor who offers the loan products of multiple lenders? - CORRECT
ANSWER mortgage broker
what is a type of real estate company modeled after mutual funds? - CORRECT ANSWER
REIT
what is a debt investment in which an investor Sloan's money to an entity that borrows the funds for a
defined period of time at a fixed interest rate? - CORRECT ANSWER bonds
what is a non institutional individual or company that loans money, generally secured by a note and
deed of trust, for the purpose of funding a real estate transaction? - CORRECT ANSWER
private lenders
what is the rate which is charged or paid for the use of money? - CORRECT ANSWER interest
which type of loan is used by builders to develop subdivisions? - CORRECT ANSWER
blanket mortgage
which of the following is chattel? - CORRECT ANSWER washer/dryer
what type of mortgage is required when a buyer and a seller agree to convey not only real property,
but personal property as well? - CORRECT ANSWER package mortgage
, both lender and borrower will agree to a monthly payment, however, at a predetermined time, agreed
to by all parties, the remainder of the note will be due. - CORRECT ANSWER balloon
mortgage
insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure
and deficiency. - CORRECT ANSWER private mortgage insurance
what is a type of mortgage that is normally made to borrowers with lower credit ratings? - CORRECT
ANSWER subprime mortgage
what is a way for smaller Banks to take a piece of a larger loan transaction there by spreading risk? -
CORRECT ANSWER participation loans
what is the Federal open market committee? - CORRECT ANSWER it is the fed's monetary
policy-making body
Mike and Laura make $110,000 a year. there long-term monthly debt is $1,250. how much monthly
payment can they qualify for SD qualifying ratios are 28%/36%? - CORRECT ANSWER
$2,050.00
a______________allows the home buyer to claim a tax credit for some portion of the mortgage
interest paid per year. - CORRECT ANSWER mortgage credit certificate
this type of mortgage may or may not have "caps" - CORRECT ANSWER Adjustable rate
mortgage
which one of the following is NOT a "red flag" for mortgage fraud? - CORRECT ANSWER
Property to be paid with cash at closing
what is the amount of money allocated to pay down the loan each month? - CORRECT ANSWER
principal
what is non performance of a duty arising under a contract or otherwise? - CORRECT ANSWER
default
QUESTIONS AND CORRECT ANSWERS
______________typically aim to build commercial mortgage loan portfolios that are diversified by
property type and geography as well as in accordance with applicable investment guidelines. -
CORRECT ANSWER life insurance companies
____________________are member-owned, not for profit financial cooperatives that provide savings,
credit, and other financial services to their members - CORRECT ANSWER credit unions
what is an independent contractor who offers the loan products of multiple lenders? - CORRECT
ANSWER mortgage broker
what is a type of real estate company modeled after mutual funds? - CORRECT ANSWER
REIT
what is a debt investment in which an investor Sloan's money to an entity that borrows the funds for a
defined period of time at a fixed interest rate? - CORRECT ANSWER bonds
what is a non institutional individual or company that loans money, generally secured by a note and
deed of trust, for the purpose of funding a real estate transaction? - CORRECT ANSWER
private lenders
what is the rate which is charged or paid for the use of money? - CORRECT ANSWER interest
which type of loan is used by builders to develop subdivisions? - CORRECT ANSWER
blanket mortgage
which of the following is chattel? - CORRECT ANSWER washer/dryer
what type of mortgage is required when a buyer and a seller agree to convey not only real property,
but personal property as well? - CORRECT ANSWER package mortgage
, both lender and borrower will agree to a monthly payment, however, at a predetermined time, agreed
to by all parties, the remainder of the note will be due. - CORRECT ANSWER balloon
mortgage
insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure
and deficiency. - CORRECT ANSWER private mortgage insurance
what is a type of mortgage that is normally made to borrowers with lower credit ratings? - CORRECT
ANSWER subprime mortgage
what is a way for smaller Banks to take a piece of a larger loan transaction there by spreading risk? -
CORRECT ANSWER participation loans
what is the Federal open market committee? - CORRECT ANSWER it is the fed's monetary
policy-making body
Mike and Laura make $110,000 a year. there long-term monthly debt is $1,250. how much monthly
payment can they qualify for SD qualifying ratios are 28%/36%? - CORRECT ANSWER
$2,050.00
a______________allows the home buyer to claim a tax credit for some portion of the mortgage
interest paid per year. - CORRECT ANSWER mortgage credit certificate
this type of mortgage may or may not have "caps" - CORRECT ANSWER Adjustable rate
mortgage
which one of the following is NOT a "red flag" for mortgage fraud? - CORRECT ANSWER
Property to be paid with cash at closing
what is the amount of money allocated to pay down the loan each month? - CORRECT ANSWER
principal
what is non performance of a duty arising under a contract or otherwise? - CORRECT ANSWER
default
