Question 1

Choose the one most appropriate answer for each.
-a real estate industry nickname for the Federal Home Loan Mortgage Corporation

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury J

Question 2

Which of the following is most likely to specialize in large, commercial participation loans?

Accepted Answer

A)  Mortgage banks 
B)  Savings and loans 
C)  Farmers home loan association 
D)  Life insurance companies 
A)  Mortgage banks 
B)  Savings and loans 
C)  Farmers home loan association 
D)  Life insurance companies D

Question 3

GNMA will guarantee all loan types.

Accepted Answer

A) True 
 B)False  False

Question 4

All of the following offer secondary mortgage market programs EXCEPT

Accepted Answer

A)  FNMA. 
B)  FDIC. 
C)  FHLMC. 
D)  GNMA. 
A)  FNMA. 
B)  FDIC. 
C)  FHLMC. 
D)  GNMA.

Question 5

Computerized Loan Origination (CLO)programs are available to

Accepted Answer

A)  mortgage brokers. 
B)  real estate brokers. 
C)  attorneys. 
D)  all of the above. 
A)  mortgage brokers. 
B)  real estate brokers. 
C)  attorneys. 
D)  all of the above.

Question 6

A primary mortgage lender is one who

Accepted Answer

A)  lends to FNMA, FHLMC and GNMA. 
B)  pools, insures, guarantees and sells first mortgage loans. 
C)  lends to borrowers, services the loans and perhaps sells the instruments to another. 
D)  lends only for first mortgages and deeds of trust. 
A)  lends to FNMA, FHLMC and GNMA. 
B)  pools, insures, guarantees and sells first mortgage loans. 
C)  lends to borrowers, services the loans and perhaps sells the instruments to another. 
D)  lends only for first mortgages and deeds of trust.

Question 7

Most mortgage brokers generally

Accepted Answer

A)  lend their own funds. 
B)  use money provided by other investors. 
C)  service the loans they make. 
D)  only make loans on large properties. 
A)  lend their own funds. 
B)  use money provided by other investors. 
C)  service the loans they make. 
D)  only make loans on large properties.

Question 8

Choose the one most appropriate answer for each.
-a firm that makes mortgage loans and then sells them to investors

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 9

Which of the following supplies money to finance home loans?

Accepted Answer

A)  Fannie Mae 
B)  FHA 
C)  VA 
D)  Savings and loans 
A)  Fannie Mae 
B)  FHA 
C)  VA 
D)  Savings and loans

Question 10

Farmer Mac was created to provide a secondary market for farm loans.

Accepted Answer

A) True 
 B)False

Question 11

Choose the one most appropriate answer for each.
-instruments that pay interest that is tax-free from federal income taxes

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 12

Choose the one most appropriate answer for each.
-computerized communication systems for loan approval between a loan originator and an investor

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 13

Fannie Mae buys and sells all mortgages EXCEPT

Accepted Answer

A)  FHA loans. 
B)  VA loans. 
C)  conventional loans. 
D)  chattel mortgages. 
A)  FHA loans. 
B)  VA loans. 
C)  conventional loans. 
D)  chattel mortgages.

Question 14

Choose the one most appropriate answer for each.
-the result created when lenders are required to pay high rates of interest for deposits while receiving long-term income from low-interest rate mortgage loans

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 15

Choose the one most appropriate answer for each.
-government created money;also called "printing press money"

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 16

Computerized Loan Origination is limited to regulated lenders.

Accepted Answer

A) True 
 B)False

Question 17

Freddie Mac was originally formed to provide a secondary mortgage market facility for the

Accepted Answer

A)  Federal National Mortgage Association. 
B)  Government National Mortgage Association. 
C)  Federal Home Loan Bank Board. 
D)  Mortgage Guaranty Insurance Corporation. 
A)  Federal National Mortgage Association. 
B)  Government National Mortgage Association. 
C)  Federal Home Loan Bank Board. 
D)  Mortgage Guaranty Insurance Corporation.

Question 18

Choose the one most appropriate answer for each.
-a certificate that represents an undivided interest in a Freddie Mac pool

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 19

Which of the following specializes in bringing lenders and borrowers together without lending their own money?

Accepted Answer

A)  Insurance companies 
B)  Mortgage bankers 
C)  Mortgage brokers 
D)  Commercial banks 
A)  Insurance companies 
B)  Mortgage bankers 
C)  Mortgage brokers 
D)  Commercial banks

Question 20

A lender who continues to collect mortgage payments even after selling the loan is said to be

Accepted Answer

A)  originating loans. 
B)  laundering money. 
C)  servicing the loan. 
D)  discounting the loan. 
A)  originating loans. 
B)  laundering money. 
C)  servicing the loan. 
D)  discounting the loan.

Exam 12: Sources of Financing

Choose the one most appropriate answer for each. -a real estate industry nickname for the Federal Home Loan Mortgage Corporation

Which of the following is most likely to specialize in large, commercial participation loans?

GNMA will guarantee all loan types.

All of the following offer secondary mortgage market programs EXCEPT

Computerized Loan Origination (CLO)programs are available to

A primary mortgage lender is one who

Most mortgage brokers generally

Choose the one most appropriate answer for each. -a firm that makes mortgage loans and then sells them to investors

Which of the following supplies money to finance home loans?

Farmer Mac was created to provide a secondary market for farm loans.

Choose the one most appropriate answer for each. -instruments that pay interest that is tax-free from federal income taxes

Choose the one most appropriate answer for each. -computerized communication systems for loan approval between a loan originator and an investor

Fannie Mae buys and sells all mortgages EXCEPT

Choose the one most appropriate answer for each. -the result created when lenders are required to pay high rates of interest for deposits while receiving long-term income from low-interest rate mortgage loans

Choose the one most appropriate answer for each. -government created money;also called "printing press money"

Computerized Loan Origination is limited to regulated lenders.

Freddie Mac was originally formed to provide a secondary mortgage market facility for the

Choose the one most appropriate answer for each. -a certificate that represents an undivided interest in a Freddie Mac pool

Which of the following specializes in bringing lenders and borrowers together without lending their own money?

A lender who continues to collect mortgage payments even after selling the loan is said to be

Nature and Description of Real Estate

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