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Questions and Answers
What type of property must a federally related mortgage loan be secured by?
What type of property must a federally related mortgage loan be secured by?
- Commercial real property
- Residential real property (correct)
- Industrial real property
- Agricultural real property
Who can make a federally related mortgage loan?
Who can make a federally related mortgage loan?
- Any individual or organization
- Only regulated or insured lenders (correct)
- Only private lenders
- Only federal agencies
What type of loan is considered a federally related mortgage loan?
What type of loan is considered a federally related mortgage loan?
- Any loan made for any purpose
- Only loans intended to be sold to certain government-sponsored entities (correct)
- Only loans made by a creditor investing in over $1 million in commercial real estate loans per year
- Only loans secured by commercial real property
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Study Notes
- A federally related mortgage loan is any loan secured by residential real property.
- The property must be designed for occupancy by one to four families or a manufactured home.
- The loan must be made by a regulated or insured lender, or insured by a federal agency.
- It can also be intended to be sold to certain government-sponsored entities.
- Loans made by a creditor investing in over $1 million in residential real estate loans per year also qualify.
- Loans originated by a dealer or mortgage broker also qualify.
- Home equity conversion mortgages are also considered federally related mortgage loans.
- Installment sales contracts, land contracts, or contracts for deed are also considered federally related mortgage loans if funded by a qualifying mortgage loan.
- The loan must be located in a state to qualify.
- The definition of "creditor" does not include any agency or instrumentality of any state.
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