Real Estate Principles Unit 10 multiple choice 2

The most effective method for the federal reserve to create a “tight money” market is to

• Buy government bonds and increase the reserve requirement

• Sell government bonds and decrease the reserve requirement

• Buy government bonds, and raise the discount rate

• Sell government bonds and raise the discount rate

What federal agency ensures deposits, in all federally, chartered banks and savings institutions?

• GLBA

• HUD

• FIRREA

• FDIC

The process of gradually, relaxing regulatory restraints is called

• Disintermediation

• Deregulation

• Depreciation

• None of the above

The type of lenders having the greatest percentage percentage of its assets invested in residential real estate mortgages are

• Commercial banks

• Credit unions

• Life insurance companies

• Thrifts

Which of the following lenders frequently uses a warehouse line to make loans to borrowers?

• FHA

• Mortgage companies

• Savings and loan associations

• VA

In the field of real estate financing, the term “secondary mortgage market” usually refers to

• Junior liens

• Secondary financing

• Unsecured financial instruments

• The resale or transfer of existing trust, deed loans

The original purpose of the Federal National Mortgage Association (Fannie Mare) was

• Buying and selling FHA and VA loans in the secondary market

• Buying and selling conventional loans in the secondary market

• Buying FHA and VA loans in the primary market

• Selling VHA and VA loans in the primary market

What shows the borrowers payment history, balance of outstanding debt, credit history, number of credit inquiries, and types of debt held?

• FICO score

• Credit score

• Loan application

• Credit report

The underlying security for the mortgage loan is the

• Credit-worthiness of the borrower

• Loan-to-value

• Property

• Borrowers FICO score

If only the annual percentage rate (APR) is disclosed in an advertisement for property which additional disclosures must be made?

• The amount or percentage of the down payment

• The terms of repayment

• The amount of any finance charge

• No other disclosures are required