Sharon Butler Crash Course: Part 2 Flashcards

Sharon Butler Crash Course: Part 2 Flashcards

On a seller's closing statement,which of the following would

be acredit to the seller:A. The proration of prepaid taxes.B.

The pay-off of an existing loan.C. The payment of a commission to thelisting broker.D. The proration of prepaid rent receivedfrom tenants.a A mortgage loan is generallyinsured by which of the

following:A. VA.B. FHA or PMI.C. ENMA.D. The

beneficiary.b The power to sell a property inthe event of a default under

theterms of a trust deed is given by:A. Trustee to the

trustor.B. Buyer to the beneficiary.C. Buyer to the seller.D.Trustor to the trustee.d Which of the following demonstrates adifference between mortgage bankers andmortgage brokers?A. Mortgage brokers do not usually loan theirown money.B. Mortgage bankers do not usually loan theirown money.C. Mortgage brokers usually service the loansthey make.D. Mortgage bankers must work under a realestate broker's license.a John Gardner went to Broker Smith fora 15-year loan for $190,000 on hisproperty, which was worth $300,000 andwas free and clear. Which of the followingis the least

likely lender for this loan:A. Insurance company.B. Direct

lender.C. Private lender.D. Credit union.a A negotiable instrument is adocument on which demand for paymentcan be made. All of the following areusually

considered r-gotiableinstruments, except:A. An installment

note.B. A personal check.C. A mortgage securing a promissory note.D. A bank draft.c A charge imposed on specific realproperty by which the

property is madecollateral for a loan is called:A. An

encumbranceB. A lien.C. A quitclaim deed.D. A restriction in the form of acovenant.b Which of the following demonstrates adifference between

mortgage brokers andmortgage bankers:A. Mortgage

brokers are called direct lenders.B. Mortgage brokers like to sell the loans theymake on the secondary market.C.Mortgage bankers like to sell their loans onthe secondary market and continue to servicethem.D. Mortgage bankers do not need the MLOdesignation.c When a seller carries back asecond trust deed, this

creates:A. An equitable lien.B. A specific lien.C. A general

lien.D. An involuntary lien.b

Which of the following is thevendor in a Cal-Vet loan:A. The

Veterans Administration.B. The Department of VeteransAffairs.C. The Federal HousingAdministration.D.The Housing Authority.b Sometimes a lender secured with a deed oftrust in California will opt for a judicialforeclosure. Why would such a lender sue incourt rather than go through a trustee's sale?A. It is quicker to go throug a judicialforeclosure.B. It is final.C. The lender can obtain a deficiency judgmentagainst the borrower in a judicial foreclosure,but not through a trustee's sale.D. It is less expensive.c Mello-Roos bonds are used to funda wide variety of new publicimprovements and services. All of thefollowing would

be funded by Mello-Roos, except:A. Schools.B. Parks.C. A

commercial strip mall.D. Police services.c What types of payments areallowed on an FHA loan?A.Monthly payments only.B. Semi-monthly payments.C.Semi-annual payments.D. Any of the above.a When a trustee's sale has takenplace, what kind of deed will thewinning bidder receive?A. A grant deed.B. A quitclaim deedC. A trust deed.D. A trustee's deed.d When the date of the sale ispublished, how much time must goby before the trustee's sale can takeplace?A. 10 business days.B. 21 days.C. 30 days.D. 45 days.b

• Which of the following is anexample of a voluntary

lien:A. A mechanics lien.B. Overdue property tax.C. A

purchase money trust deed.D. When a seller carries back asecond.c Which of the following is notpermitted when using an FHA

loanto purchase a home:A. Points charged to the

borrower.B. A gift down payment.C. A junior loan.D. A lump sum payment of mortgageinsurance.c The Truth in Lending Law (TILA-1968) wasenacted for

which of the following purposes:A. To make more money

available forqualified borrowers.B. To increase the percentage of homeownership.C. To disclose credit terms to consumers in ameaningful way.D. To allow consumers to shop for closingservices.c With a CalHFA loan made throughprivate lenders, loans

are funded:A. With sellers carrying back a part ofthe

purchase price.B. By the sale of tax-exemptgovernment bonds.C. With federal carry-over funds.D. By the Department of Housing andCommunity Development.b An abstract of title providesinformation related to which of

thefollowing:A. Availability.B. Marketability.C. Constructive

notice.D. Unrecorded liens.b