Real Estate 13 Quiz

The buyers purchased a residence for $395,000, making a down payment of $79,000 and obtaining a loan for the balance. The loan is

• a nonconforming loan.

• a package mortgage.

• a balloon note.

• a purchase money mortgage.

A buyer purchased a new residence from a builder for $350,000. The buyer made a down payment of $30,000 and obtained a $320,000 mortgage loan. The builder of the house paid the lender 3% of the loan balance for the first year and 2% for the second year. This represented a total savings for the buyer of $16,000. What type of mortgage arrangement is this?

• Open-end

• Package

• Blanket

• Buydown

Which of the following is a participant in the primary mortgage market?

• Fannie Mae

• Ginnie Mae

• Credit union

• Freddie Mac

One of the federal laws requiring disclosure to a loan applicant who is rejected for a loan on the basis of a credit report is

• the Real Estate Settlement Procedures Act.

• the Community Reinvestment Act.

• the Fair Credit Reporting Act.

• the Truth in Lending Act.

States are required to license mortgage loan originators by

• HUD.

• the SAFE Act.

• FHA.

• the OCC.

The conservatorship of Fannie Mae and Freddie Mac is the responsibility of

• the Federal Housing Finance Agency.

• the Federal Housing Authority.

• the Office of the Comptroller of the Currency.

• the Federal Reserve System.

What is the source of the rules that govern the use of real estate advertisements in all media, if they include mortgage financing terms?

• Equal Credit Opportunity Act

• Fair Lending Act

• Community Reinvestment Act

• Regulation Z of the Truth in Lending Act

A developer received a loan that covers five parcels of real estate and provides for the release of the mortgage lien on each parcel when certain payments are made on the loan. This type of loan arrangement is called

• the purchase money loan.

• the blanket loan.

• the package loan.

• the wraparound loan.

Funds for FHA-insured loans are usually provided by

• the FHA.

• the Federal Reserve.

• approved lenders.

• the seller.

Regulation Z generally applies when a credit transaction is secured by

• a commercial property.

• a residence.

• a business.

• an agricultural property.