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15 Cards in this Set
- Front
- Back
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Prior to deregulation of the banking industry in the 1980's, which institutions were dominant in providing funds for the purchase of single-family residences? a. commercial banks b. saving and loan associations c. the FHA d. mortgage bankers |
b
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The major source of funds for large commercial real estate developments is a. savings and loan associations. b. commercial banks. c. life insurance companies. d. mutual savings banks. |
c
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If the Federal Reserve Board decides to purchase government securities in the open market, the effect will be to a. decrease the money supply and cause interest rates to increase. b. increase the money supply and cause interest rates to decrease. c. limit the amount of money member banks may use for loan puposes, causing interest rates to increase. d. create a "tight money" market |
b
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Which group of financial institutions traditionally preferred to make short-term loans for construction? a. mutual savings banks b. savings and loan associations c. life insurance companies using a mortgage banker d. commercial banks |
d
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The secondary mortgage market is a. the market where second mortgages are sold. b. where loans originated in the primary market are sold. c. where loans made only be private parties are sold. d. the market where second mortgages are originated. |
b |
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Mortgage brokers are usually compensated for their service by a a. monthly loan service fee. b. salary. c. finder's fee or commission. d. share of the borrower's assets. |
c |
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A capital deficit area has a. insufficient local funds. b. too few banks. c. excessive wealth. d. more savings and loan institutions than secondary mortgage investors. |
a |
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Disintermediation occurs when a. deposits exceed the demand for loans. b. depositors withdraw their savings from depository institutions. c. the IRS taxes earnings of investments. d. the Federal Reserve Board reduces the discount rate. |
b |
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A blanket mortgage that allows for the release of a single parcel upon payment of a specified sum contains which clause? a. defeasance b. acceleration c. satisfaction d. release |
d |
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The Federal Housing Adminstration a. originates loans. b. insures loans. c. guarantees loans. d. certifies loans. |
b |
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Interest rates for FHA mortgages are determined by the a. market. b. FHA. c. government. d. Congress. |
a |
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The Federal National Mortgage Association was originally formed to purchase what type of loans? a. conventional b. FHA c. VA d. deeds of Trust |
b |
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Construction loans are paid out in a. full at the beginning of construction. b. equal installments during the construction process. c. full upon completion of construction. d. draws after specific stages of construction have been completed. |
d
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If a mortgage loan payment consists of interest only, the final payment which includes the full amount borrowed is called a a. monthly payment. b. balloon payment. c. amortized payment. d. term payment. |
b |
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Deeds of trust a. are only used when the parties trust each other. b. are never used in title theory states. c. are used in lien theory states. d. temporarily convey title to a third party. |
d |
