VA Real Estate Licensing Exam - National Portion Questions with Complete Solutions.
1 view 0 purchase
Course
VA Real Estate
Institution
VA Real Estate
Fannie Mae (FNMA) - ANSWER-Government sponsored private corporation that generates funds for primary lenders by buying and selling FHA, VA and Conventional Loans.
Minnie Mae (GNMA) - ANSWER-Federal Agency under HUD that operates the federal subsidy housing loan programs.
Freddie Mac (FHLMC) -...
VA Real Estate Licensing Exam -
National Portion Questions with
Complete Solutions.
Fannie Mae (FNMA) - ANSWER-Government sponsored private corporation that
generates funds for primary lenders by buying and selling FHA, VA and Conventional
Loans.
Minnie Mae (GNMA) - ANSWER-Federal Agency under HUD that operates the federal
subsidy housing loan programs.
Freddie Mac (FHLMC) - ANSWER-Organized to borrow money from pension and trust
funds to purchase mortgages and pool them together and to sell bonds on the open
market with mortgages as security.
Primary Mortgage Market - ANSWER-1. Primer lenders or originators who make
mortgage loans (supply cash) directly to borrowers
2. Activities: Loan origination, loan servicing, conventional loan --> loan originated by
PM without government insurance (FHA) or guarantees authorized by VA Dept. of
Veteran Affairs (greater risk to lenders than government back loans)
--Down payment (20% typical)
--Primary Mortgage Insurance (PMI): typical on loans (LTV) of over 80%
Secondary Mortgage Market - ANSWER-1. Network of institutions that purchase and
sell existing mortgages
2. Two forces led to it's creation:
--Business entities with cash reserves in real estate
--Primary Market financial Institutions in need of cash to originate loans
3. Fannie Mae, Ginnie Mae, Freddie Mac
Federal Housing Administration (FHA) - ANSWER-1. Insures but does NOT originate
loans
2. Debt to Income Ratio: 31% for housing costs, 43% for housing expenses and other
long-term debt
3. FHA borrowers MUST purchase FHA mortgage insurance
4. Criteria more forgiving for credit score than on conventional loan
VA Guaranteed Home Loan (VA Loan) - ANSWER-1. Loan guaranteed by the
department of veteran affairs for eligible veterans that purchase, build or refinance a
house
, 2. Guaranteed by RARELY originates
3. The LENDER (NOT the VA) determines max loan amount and interest rates
Mortgage - ANSWER-1. Between 2 Parties
2. Borrower retains title while lender takes a lien on the property
*A specific loan secured by a voluntary lien on real property, where a property owner
enters into a contract to borrow money and voluntarily agrees to extinguish his rights to
his real property in favor of the lender if he fails to pay the debt according to the terms of
the loan agreement.*
Deed of Trust - ANSWER-1. Between 3 Parties
2. Neutral 3rd party (trustee) holds title until loan is repaid in full
Which of the following is most often included in a mortgage?
1. Seisin
2. Further Assurances
3. Quiet Enjoyment
4. Pay Taxes - ANSWER-4. Pay taxes
APR Calculation - ANSWER-Interest Rate + ALL fees
Truth in Lending Act (TILA) - ANSWER-Federal law with the primary purpose to
promote the meaningful disclosure of consumer credit and lease terms in order to
facilitate choice
Regulation Z - ANSWER-Requires lenders to disclose key loan terms and fees when
advertising and selling services
RESPA - ANSWER-Federal law administered and enforced by the Consumer Financial
Protection Bureau (CFPB), which regulates closing procedures to ensure that lenders
fully inform buyers and sellers of all settlement costs that lenders do not engage in
unfair practices
***Does NOT apply to CASH transactions***
RESPA prevents anyone from giving or accepting a fee, kickback or anything of value in
exchange for referrals of settlement service business involving a federally related
mortgage loan
Cost Approach - ANSWER-Replacement cost - depriciation + land value = Total
Property Value
*usually sets upper limits of value*
Income Approach - ANSWER-Net operating income
------------------------- = Property Value
Capitalization rate
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller IMORA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.19. You're not tied to anything after your purchase.
