Deck 4: Other Primary Market Lenders

Question 1

The fee a mortgage lender charges for assembling a loan package and determining acceptance or rejection of an applicant is all a loan ________________.

A) Underwriting Fee
B) Servicing Fee
C) Assembling Fee
D) Origination Fee

Answer 1

Origination Fee

Question 2

A basic difference between mortgage companies and regulated lenders is that mortgage companies

A) are subject to no regulations
B) hold no deposit assets with which to fund loans
C) are higher cost operators and unable to be competitive
D) handle only FHA and VA loans

Answer 2

hold no deposit assets with which to fund loans

Question 3

Mortgage brokers residential mortgage loan market share has decreased substantially because of

A) the rapid consolidation of the mortgage banking industry and new compensation disclosure rules.
B) the complexity of mortgage loans has grown beyond the capabilities of mortgage brokers .
C) legislation that restricts major company lenders.
D) a decline in the number of companies that qualify as mortgage bankers.

Answer 3

the rapid consolidation of the mortgage banking industry and new compensation disclosure rules.

Question 4

Most RMBS issued by Fannie Mae and Freddie Mac being issued not being purchased by the Federal Reserve Bank is being financed by REIT's using the ___________________.

A) Discount Window of the Federal Reserve Bank
B) Federal National Mortgage Conduit
C) The Federal Housing Administration
D) Public-Private Investment Program

Question 5

The continued acceptance and growth of Real Estate Investment Trust has been enhanced by

A) the sale of REIT stock in the financial markets
B) the collapse of Foreign Investment in real estate
C) improved management
D) greater publicity

Question 6

The slow recovery in the Mortgage Backed Securities markets since the beginning of the financial crisis in 2008 and continuing into 2011 has caused most mortgages to be directly or indirectly guaranteed by:

A) FHA
B) VA
C) U.S. Government
D) Federal Reserve Bank

Question 7

The fee a mortgage lender charges for assembling a loan package and determining acceptance or rejection of an applicant is called a loan

A) Underwriting Fee
B) Servicing Fee
C) Assembling Fee
D) Origination Fee

Question 8

Automated underwriting means

A) used only by Internet operators
B) analysis of loan application by computer software programs that allow loan approval if justified
C) analysis of loan application by elimination of all human input
D) transmission of loan info via a computer

Question 9

While the distinction between mortgage bankers and brokers is diminishing, a full service mortgage banker means being capable of all the of the following EXCEPT

A) originating or negotiating a loan.
B) funding a loan at closing.
C) servicing a loan until pay off.
D) holding a loan in portfolio.

Question 10

The growing complexity of mortgage loans and the need for better consumer protection against poorly qualified brokers has led to

A) great simplification of the mortgage loan process.
B) lowering the qualification requirements of borrowers.
C) state and National education and licensing of mortgage brokers.
D) requirements that all mortgage brokers become mortgage bankers.

Question 11

The Farm Credit System consists primarily of

A) a Cooperative, borrower-owned network of farm lending banks
B) the Rural Development Service of the Department of Agriculture and related agencies
C) only the Federal Land Bank Associations
D) the government agency that underwrites all qualifying farms loans.

Question 12

Computerized loan origination is a procedure that allows a real estate agent to

A) analyzed a loan without consulting a qualified underwriter.
B) approve and fund mortgage loans in house
C) assist an applicant for a mortgage loan and transmit the information via computer to a lender
D) set its own standards for loan qualification.