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AYPO Real Estate Finance Exam 2025 (Actual
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What is the difference between negotiable and nonnegotiable instruments? ------- --CORRECT ANSWER-----------------Negotiable in instruments are transferable while non-negotiable instruments are not The FDIC has authority to ---------CORRECT ANSWER-----------------Make large and complex financial institutions, resolvable, examine and supervise financial institutions, ensure deposits With regard to bank issued loans, the discount rate is ---------CORRECT ANSWER--- --------------the interest rate commercial banks and other depository institutions are charged on loans from the fed Part of HUD's vision statement is: ---------CORRECT ANSWER-----------------ending homelessness A title I loan is for the purchase or refinancing of ---------CORRECT ANSWER---------- -------A manufactured home and/or the land it's on
What is the name of the state sponsored program through the TDHCA that offers more competitive fits interest, and an annual percentage rates to qualified first time homebuyers while providing down payment and closing cost assistance of up to 5% of the mortgage loan? ---------CORRECT ANSWER-----------------My first text is home by the Texas homebuyer program Which of these is not required to request a loan estimate from a lender? --------- CORRECT ANSWER-----------------Borrower employment history What is required to request a loan estimate from a lender? ---------CORRECT ANSWER-----------------Name, income, Social Security number, property address, property value estimate, and amount to borrow In an effort to combat corruption and insider trading, the Dodd-Frank act included a ______ provision, allowing individuals to report security violations to the government for financial reward ---------CORRECT ANSWER----------------- whistleblowing Which of these acts revised the mortgage lending disclosures effective as of October 2015 ---------CORRECT ANSWER-----------------TILA and RESPA
______ are quasi-governmental, privately-held entities that were created to assist and improve the flow of credit to certain sectors of the economy or to otherwise expedite delivery of essential public services. ---------CORRECT ANSWER-------------- ---government-sponsored enterprises (GSEs) What differentiates a deed of trust from a mortgage is best described by which of these? ---------CORRECT ANSWER-----------------A mortgage involves only the borrower and the lending institution, while a deed of trust includes a third-party trustee Texas is which form of state in terms of real estate transactions? ---------CORRECT ANSWER-----------------Lien theory state Which of these clauses allows a borrower to transfer a mortgage attached to a property, along with the title, to another owner? ---------CORRECT ANSWER--------- --------Assumption A lien is said to be "perfected" by which of the following? ---------CORRECT ANSWER-----------------When the lien is recorded with the appropriate public agency An equity line of credit would be considered _________ to a first mortgage. --------
- CORRECT ANSWER-----------------junior
The role of purpose of the promissory note is best described by which of the following? ---------CORRECT ANSWER-----------------It is essentially an I owe you promising to repay the loan Interest rates that are based on a flat percentage of the loan and not compounded could be what kind of interest loans? ---------CORRECT ANSWER------- ----------1. Simple
- Annual FHA Title I loans generally are for: ---------CORRECT ANSWER----------------- manufactured homes With mortgage loans, most financial institutions used compound interest rather than simple interest, generally, for which of the following reasons? --------- CORRECT ANSWER-----------------Compound interest adds up faster Different ways that the rate and term conventional refinance can be used include ---------CORRECT ANSWER-----------------1. Lowering the loan interest rate
- Shortening the term of the loan
Which of the four FHA property categories does the IE designation stand for? ------ ---CORRECT ANSWER-----------------Insurable with Escrow Which credit score range generally limits in FHA insured loan borrower to no greater than 90% of the property value? ---------CORRECT ANSWER----------------- Between 500 - 579 Underwriting is the process of ---------CORRECT ANSWER-----------------Reviewing the loan to judge, it's insurability Which federal agency provide significant support to home loan program --------- CORRECT ANSWER-----------------Federal housing administration, and veterans administration Direct endorsements refers to, which of the following ---------CORRECT ANSWER--- --------------FHA lenders who are authorized to process their own FHA loans with FHA using their underwriting guidelines When calculating debt to income ratio, which of these is not included in the calculations? ---------CORRECT ANSWER-----------------Irregular overtime
Mortgage insurance is generally required under which of these circumstances? --- ------CORRECT ANSWER-----------------A loan it seeds 80% of the homes value Which of these is a component of a standard ARM? ---------CORRECT ANSWER------ -----------an index There are a number of acceptable ways for a borrower to build reserves for a property purchase and closing costs, however, the borrower must --------- CORRECT ANSWER-----------------be able to prove the source of the funds TREC law requires that every buyer be made aware ---------CORRECT ANSWER------ -----------That the sales contract states the buyer should purchase a title insurance policy or title abstract Most lenders will not approve a buyer if home ownership cost are projected to make up more than ____ of their gross monthly income ---------CORRECT ANSWER-----------------28%
bond market ---------CORRECT ANSWER-----------------the collective buying and selling of bonds; most bond trading is done over the counter, rather than in organized exchanges Real estate markets moved through a four phase cycle. Which of these factors is/are element influencing this cycle? ---------CORRECT ANSWER----------------- Government interventions and policies The US real estate market is said to run in ---------CORRECT ANSWER----------------- an 18 year cycle With regard to financial markets, the OTC market stands for ---------CORRECT ANSWER-----------------over the counter Which of these is not a generally reliable market source for home finance? --------- CORRECT ANSWER-----------------Inheritance In amortized loan generally is one that is - --------CORRECT ANSWER----------------- Paid off with a fixed schedule in regular installments overtime
Which of these is not a government entity critical to a discussion of the monetary system? ---------CORRECT ANSWER-----------------FDIC, federal reserve system, US treasure and mint Which of these is not a function of the department of treasury? ---------CORRECT ANSWER-----------------Providing home loans directly to consumers What are the functions of the department of treasury? ---------CORRECT ANSWER- ----------------Advising the president on economic and financial issues, facilitating improved governance in financial institutions, encouraging, sustainable, economic, or growth The federal reserve, or "the fed" ---------CORRECT ANSWER-----------------Is a network of regional reserve banks, and a board in Washington DC By creating a single, universally accepted medium of exchange, ____, the cumbersome task of finding two parties with matched mutual needs was eliminated. ---------CORRECT ANSWER-----------------money The federal reserve system does not directly control which of the following? ------- --CORRECT ANSWER-----------------Levels of employment, inflation, or national production
Currently, Fanny Mae's primary activity is to ---------CORRECT ANSWER----------------
- Purchase conforming loans and bundle them IPO's take place in the ______ market while MBS's sales generally occur in the ______ market ---------CORRECT ANSWER-----------------Primary, secondary What historic US event led to the formation of the FHA and other organizations supporting the mortgage market? ---------CORRECT ANSWER-----------------Great Depression What do insurance companies have to do with the housing market? --------- CORRECT ANSWER-----------------They lend out their capital for mortgages through other outlets Which is not generally true of commercial banks? ---------CORRECT ANSWER--------- --------Their primary focus is on underwriting and the securities trade Mortgages and mortgage back securities make up approximately what percent of the pension fund holdings? ---------CORRECT ANSWER-----------------3%
Life insurance companies currently are leaning more toward _____ mortgage loans ---------CORRECT ANSWER-----------------commercial The differences between mortgage, bankers, and mortgage brokers are best described by which of the following? ---------CORRECT ANSWER-----------------The mortgage broker can work with multiple lenders and only get paid if the loan closes, while the mortgage bankers are salaried employees of the lender and work only with that lender The types of loan that a commercial bank issues ---------CORRECT ANSWER----------- ------to vary _____ is one of the more common non-banking activities undertaken by some banks ---------CORRECT ANSWER-----------------insurance Which of the following is a common characteristic of Savings and Loan banks? ----- ----CORRECT ANSWER-----------------They are locally owned and privately managed Which of the following statements is not true? ---------CORRECT ANSWER------------ -----The promissory note is recorded with the county land records
The closing disclosure must be given to the borrower no later than which of the following sessions? ---------CORRECT ANSWER-----------------At least three days before the consummation of the loan A mutual agreement by the parties is for the borrower to voluntarily deed, the property back to the lender is referred to as which of the following? --------- CORRECT ANSWER-----------------deed in lieu of foreclosure If a bank recovers $200,000 from a foreclosure sale on a mortgage owing $250,000, but the borrower approves to the court that the fair market value is $225,000, the deficiency judgment should be ---------CORRECT ANSWER-------------- ---$25, In a non-recourse loan ---------CORRECT ANSWER-----------------The lender's only remedy is to repossess the property being financed or used as collateral Acceleration clauses are used for which of the following purposes ---------CORRECT ANSWER-----------------To call for full repayment based on default / failure to pay on the obligation
For property owners, facing foreclosure, refinancing is rarely an option if --------- CORRECT ANSWER-----------------they have little to no equity in the property When in default on a mortgage, which of these is not a possible option for the buyer to avoid foreclosure? ---------CORRECT ANSWER-----------------A principal reduction agreement What are the most common forms of home loans? ---------CORRECT ANSWER------- ----------Contract for land, deed of trust, and mortgage Which of these is best described as: a home loan using a third-party trustee to hold the deed? ---------CORRECT ANSWER-----------------Deed for Trust If she's already getting a mortgage or deed of trust, why does she need a promissory note as well? ---------CORRECT ANSWER-----------------The promissory note is the piece that actually obligates the borrower to pay back the loan Which of these is not required by Texas laws on promissory notes? --------- CORRECT ANSWER-----------------There is a maximum loan amount of $417,
What does perfecting a lien mean? ---------CORRECT ANSWER-----------------That specific steps have been taken to see that the lien has been recorded with appropriate public agency What is the difference between an easement appurtenant and a easement in gross ---------CORRECT ANSWER-----------------an easement appurtenant attaches to a specific piece of land to the benefit of the holder of the easement while an easement and rose grant rights to a servient estate without attachment, too, or benefiting, a particular piece of land Consensual lies generally are best described by which of the following? --------- CORRECT ANSWER-----------------Non-purchased-money security interest liens, and purchase-money security interest liens Which of these is not a type of lien? ---------CORRECT ANSWER----------------- Equitable servitude What are some type of liens? ---------CORRECT ANSWER-----------------Statutory, judgment, consensual
Which of these methods is not a proper manner for establishing an easement? ---- -----CORRECT ANSWER-----------------Buy acclaim - by petition from community members desiring a more convenient shortcut access to local services She has heard mystery reviews on adjustable rate mortgages and wants to know the biggest advantage of a adjustable rate mortgage ---------CORRECT ANSWER----- ------------Usually ends with a lower interest She also is considering picking up a manufactured home for a vacation home. Would she be likely to qualify? ---------CORRECT ANSWER-----------------No, for the title, I, the residence must be the borrower's primary residence If she owns both a primary residence and a vacation home for a total value of $375,000 how much mortgage interest should she be able to deduct from her taxes? ---------CORRECT ANSWER-----------------She should be eligible to deduct all of the interest on both homes so long as their total value is 1 million or less If she pays 20% down on the $250,000 home and approximately 5% of the original loan per year, as long as the homes value remains the same she should have which of these figures in equity after five years? ---------CORRECT ANSWER---------- -------$100,
