National Flood Insurance Act and Mortgage Market Quiz

What is a Real Estate Investment Trust (REIT)?

Which type of investment entity involves all members both owning and managing it together?

What does capital gain refer to when selling a residence?

What is the purpose of Cost Recovery (Depreciation) in real estate investments?

How is Net Operating Income (NOI) calculated in real estate investments?

What is the formula for calculating Taxable Earnings in real estate investments?

What is the main purpose of a promissory note in a mortgage transaction?

Which financial element represents the initial capital borrowed on which interest payments are calculated?

What does the loan origination fee represent in a mortgage transaction?

How is equity defined in a mortgage transaction?

What is hypothecation in relation to a mortgage loan?

In a trust deed transaction, what is the purpose of the promissory note?

What type of mortgage requires a lump-sum payment at the end of the term?

Which loan type has payments that are interest-only, with the principal balance retired in full at maturity using a balloon payment?

What does leverage refer to in real estate investing?

Which type of mortgage allows financing personal property along with mortgage loans?

What is the purpose of a reverse annuity mortgage?

What defines liquidity in investments?

'Asset' is defined as:

'Basis' in real estate refers to:

'Cash flow' in real estate investments is:

What is the primary purpose of the National Flood Insurance Act?

Which entity sets the reserve requirement for member banks in the US?

What is the function of the Federal Home Loan Bank System (FHLBS) in relation to savings & loan associations?

Which entity guarantees payment on certain types of loans in the US financial system?

What is the role of a mortgage loan originator in the lending process?

Which type of mortgage typically requires a 20% down payment?

What happens in negative amortization with regards to mortgage payments?

What is the distinguishing feature of an adjustable rate mortgage?

What is the function of rate and payment caps in adjustable mortgages?

How do index and margin function in adjustable rate mortgages?

What is the purpose of redemption clauses in loan agreements?

When do release clauses come into effect in loan agreements?

What do defeasance clauses require after successful repayments?

Under the Equal Credit Opportunity Act, what is prohibited as a basis for rejecting credit?

How is a borrower's income qualified when applying for a loan?

What is the purpose of Private Mortgage Insurance (PMI) when LTVs become too risky for lenders?

Which law prohibits discrimination in lending based on factors like race or religion?

'Loan-to-Value Ratio (LTV)' expresses the loan amount as a percentage relationship to which value?

What does the trust deed do in a deed of trust arrangement?

What does the Real Estate Settlement Procedures Act (RESPA) regulate?

What is the purpose of private mortgage insurance (PMI)?

What does the Condemnation Clause specify in a mortgage agreement?

What is the purpose of an escrow account in a mortgage agreement?

What happens if a borrower sells their interest in a property without consent in a Due-on-Sale Clause situation?

What is the meaning of PITI in relation to mortgage payments?

What obligation does the borrower have regarding property insurance?

What action can lenders take if borrowers jeopardize a property’s value?

Under what condition can reinstatement occur for borrowers who defaulted on loan obligations?

Which financial element refers to the charge for borrowing money, with a fixed or variable rate?

What does the loan-to-value ratio (LTV) represent in a mortgage transaction?

What is the main purpose of a trust deed in a deed of trust arrangement?

What does hypothecation refer to in relation to a mortgage loan?

What is the difference between principal amount and loan balance in a mortgage transaction?

What is the purpose of an annual percentage rate (APR) in a mortgage transaction?

What characterizes a Real Estate Investment Trust (REIT) investment?

In real estate investments, what does 'negative leverage' refer to?

What obligation does the seller of a primary residence have concerning taxes when it is sold?

Which type of investment entity involves investors purchasing trust certificates to invest in real estate assets?

What is the purpose of the calculation formula for 'Net cash flow after taxes'?

What does 'Cost recovery, or depreciation' allow real estate investors to do?

What do redemption clauses in loan agreements allow borrowers to do?

When do release clauses come into effect in loan agreements?

What is the purpose of defeasance clauses?

Under what Act must lenders assess an applicant's income and credit information on their own merit?

What is the range for income ratios used in qualifying borrowers for loans?

What does Private Mortgage Insurance (PMI) help decrease when LTVs become too risky for conventional lenders?

What does Truth-in-Lending and Regulation Z enforce before closing on a loan?

What is the function of the Equal Credit Opportunity Act?

What does Real Estate Settlement Procedures Act (RESPA) standardize?

What is the purpose of Capital Recovery (Depreciation) in real estate investments?

What type of mortgage involves pledging equity to a lender in exchange for periodic payments?

Which loan type has payments that are interest-only, with the principal balance retired in full at maturity using a balloon payment?

What is the primary purpose of a purchase money mortgage?

What does the term 'equity' represent in real estate?

What is the distinguishing feature of an adjustable rate mortgage?

What financial arrangement involves receiving periodic receipt of equity liquidation in exchange for an increase in debt owed on the property?

'Package mortgage' deals with financing articles of personal property as part of which transaction?

'Partially amortized mortgages with a balloon payment' require a lump-sum payment because payments do not retire what over the life of the loan?

'Loan-to-Value Ratio (LTV)' expresses the relationship between which two elements?

In real estate, what does 'capital gain (or loss)' represent?

What does a deed of trust do in a real estate transaction?

What is the purpose of private mortgage insurance (PMI) in real estate transactions?

What is the significance of the Real Estate Settlement Procedures Act (RESPA) in mortgage agreements?

What must a borrower ensure regarding property insurance in a mortgage agreement?

Under what circumstances can lenders demand immediate repayment from borrowers according to the Transfer of Property/Beneficial Interest clause?

What action can lenders take if borrowers misuse a property for illegal purposes?

What does PITI stand for in relation to mortgage payments?

'Acceleration' in mortgage agreements refers to what?

What is the main responsibility of borrowers of 'federally-related loans' in designated flood-hazard areas?

How does the Federal Reserve control money supply among banks?

What is the function of the Federal Deposit Insurance Corporation (FDIC) in the financial system?

What is one of the functions of the Federal Home Loan Bank System (FHLBS) in relation to savings & loan associations?

What distinguishes mortgage loan originators from brokers and bankers in the lending process?

Which entity is responsible for setting the reserve requirement for member banks in the US?

What role do FNMA and FHLMC play in the mortgage market?

What is a distinguishing feature of adjustable rate mortgages (ARMs) compared to fixed-rate mortgages?