-
A market where tenants negotiate rent and other terms with property owners or their managers is refereed to as a:
User market.
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The market in which required rates of return on available investment opportunities are determined is referred to as the:
Capital market.
-
The actions of local, state and federal governments affect real estate values:
Through user markets, capital markets, and taxation policies.
-
What portions of households own their house?
Approximately 2/3.
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Of the following asset categories, which has the greatest aggregate market value?
Nongovernmental real estate.
-
Storm water drainage systems are best described as:
Improvements to the land.
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What is the single largest asset category in the portfolio of a typical household?
Housing.
-
Real estate markets differ from other asset classes by having all of the following characteristics:
- Local market
- High transaction costs
- Segmented market
- Heterogeneous product
- (not homogeneous product)
-
Which of the following is NOT important to the locations of commercial properties?
- NOT Important: Access to schools
- Important:
- Access to customers
- Visibility
- Availability of communications infustructure.
-
Which of the following attributes of a home are the most difficult to observe and value?
Location attributes.
-
Primarily through land use
controls and property tax policy, which branch of government has the largest
influence on real estate values and why?
- Local government (municipal, county), because they generally (CA
- excepted) determine tax rates and create and enforce zoning laws, building
- codes, etc.
-
The element of an adjustable interest rate that is the "moving" part is the:
Index.
-
Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage?
Prepayment penalty.
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A lender reserve the right to require prepayment of a loan at anytime the see fit through a(n):
Demand clause.
-
When a buyer of a property with an existing mortgage lo0an acquires the property without signing the note for the existing loan, the buyer is acquiring the property:
Subject to the mortgage.
-
Which of these pints in a mortgage loan would be addressed in the mortgage (possibly in the note as well)?
Escrows.
-
To finance a property where either the borrower, the property, or both fail to qualify for standard mortgage financing, a common non-mortgage solution is through the:
Contact for deed.
-
Ways that a lender may respond to a defaulted loan without resorting to foreclosure include:
- Offer credit counseling
- Allow short sale to a third party
- Defer/forgive some of the past-due payments
- Accept a deed in lieu of foreclosure.
- NOT Accelerate debt
-
If a lender in a standard first mortgage wishes to foreclose cost effectively, it is crucial to have which clause in the mortgage?
Acceleration clause.
-
A common risk that frequently interferes wiht a lender's efforts to work out a defaulted loan through either non-foreclosure means or foreclosure is:
Bankruptcy.
-
The characteristics of a borrower that cqn be considered by a lender in a mortgage loan application are limited by the:
Equal Credit Opportunity Act.
-
The Real Estate Settlement Procedures Act (RESPA) does these:
- - requires standard settlement statement
- - prohibits kickbacks
- - requires GFE to borrowers
- - requires borrower to inspect closing statement a day before closing
-
Foreclosure tends to be quickest in states that:
Have power of sale.
-
From a home mortgage lender's perspective, which statement is true about the effect of bankruptcy upon foreclosure:
Chapter 7 bankruptcy is the most "lender friendly" form.
-
The most internationally oriented index rate for adjustable rate mortgage is:
LIBOR rate.
-
A type of loan that occurred in recent years, which raised concerns about predatory lending practices, was the:
Sub-prime mortgage.
-
A partially amortizing loan always will have:
A balloon payment.
-
These statements are true about mortgage loans for income producing properties real estate.
- - partially amortizing
- - prepayment penalty
- - non-recourse loan
- - can be I/O loan
-
With what type of loan security arrangement is the deed held by neutral third party and returned upon payment of the mortgage in full?
Deed of trust.
-
The Truth-in-Lending Act (TILA) gives some mortgage borrowers how long to rescind a mortgage loan?
3 days.
-
Which statement is correct about the right of prepayment of a home mortgage loan?
Most home mortgage loans have the right of prepayment without charge, but not all, and the borrower should check the loan carefully.
-
Capital markets can be divided into four
main categories: private equity, public equity, private debt, and public debt. Given
an example of a real estate asset that trades in the private equity market is.
An example is any real asset, for example an office block.
-
A significant number of mortgage loans use adjustable interest rates, in which the interest rate of the loan is tied to an index rate that fluctuates over time. For income-producing property, what is the most commonly used index rate?
LIBOR (London Interbank Offer Rate)
-
Three types of prepayment penalty: Percentage, Yield Maintenance, and Defeasance
- Prepayment penalty; a percentage of the outstanding balance is
- owed at prepayment.
Yield maintenance: The lender receives the present value of CF losses; thus if rate have gone up, there is no lump sum;
Defeasance: The borrower has to place a portfolio of Treasury Securities into a trust that will replicate the lender’s CFs had the prepayment not happened.
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