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Question
RESPA requires lenders to disclose to buyers a good faith estimate of certain closing costs within:
A) One day before the real estate closing
B) Three days before the real estate closing
C) One day after loan application
D) Three days after loan application
Answer
This answer is hidden. It contains 19 characters.
Related questions
Q:
The APR for a loan assumes it is prepaid after ten years.
Q:
Prepayment penalties increase the lender's mortgage yield and discount points decrease it.
Q:
Truth-in-lending requires the borrower to tell the truth on the loan application.
Q:
The effective interest rate on a mortgage will always be higher than the stated rate of the loan.
Q:
Determining a loan balance on a CPM is a simple present value of an annuity problem.
Q:
One difference between the constant amortizing mortgage (CAM) and the constant payment mortgage (CPM) is the interest paid and loan amortization relationship. With a CAM, the loan amortization and interest paid are directly related and with the CPM the loan amortization and the interest paid are inversely related.
Q:
Using only the information in the table below, what would the IRR be for an investment that cost $500 in period 0 and was sold for $750 in period 5?
Present Value Factor for Reversion of $1 Period
6%
7%
8%
9%
10% 1
.943396
.934579
.925926
.917431
.909091 2
.889996
.873439
.857339
.841680
.826446 3
.839619
.816298
.793832
.772183
.751315 4
.792094
.762895
.713503
.708425
.683013 5
.747258
.712986
.680583
.644931
.620921 6
.704961
.666643
.630170
.596267
.564474 A) Between 6% and 7%
B) Between 7% and 8%
C) Between 8% and 9%
D) Between 9% and 10%
Q:
The future value compound factor given for period (n) at 15%:
A) Would be less than the factor for period (n + 1) at 15%
B) Would be greater than the factor given for period (n + 1) at 15%
C) Would be the same as the factor given for period (n + 1) at 15%
D) Bears no relationship to the factor for period (n + 1) at 15%
Q:
Your friend has a trust fund that will pay him $100,000 at the end of 10 years. Your friend, however, wants his money today. He promises to sign his trust fund over to you if you give him some money today. You require a 20% interest rate on money you lend to friends. How much would you be willing to lend under these terms?
A) $16,151
B) $50,000
C) $80,000
D) $0it would be impossible to earn 20% interest on the loan.
Q:
The internal rate of return is the good feeling you get inside when you earn a return on your investment.
Q:
The term to describe a piece of tangible personal property that is affixed to a property, such that it may be considered part of the property?
A) Cramdown
B) Workout
C) Redemption
D) Chattel
Q:
A transaction in which a borrower sells a property for less than the current balance of the loan and then provides all of the proceeds to the sale to the lender, typically in full satisfaction of the loan.
A) Prepackaged bankruptcy
B) Short sale
C) Judicial foreclosure
D) Friendly foreclosure
Q:
A property is encumbered as follows:
First mortgage, A: $250,000
Second mortgage, B: $40,000
Third mortgage, C: $10,000
How much can mortgagee B pay for the property at a foreclosure sale without having to raise additional funds?
A) $290,000
B) $40,000
C) $300,000
D) $50,000
Q:
One difference between mortgage securities and corporate bonds is that mortgage securities tend to be "overcollateralized."
Q:
The secondary mortgage market enables mortgage banking companies to sell existing mortgages and thereby replenish funds with which new loans can be originated.
Q:
A syndicate that raises capital before identifying any or all of the properties it will eventually own is known as a(n):
A) Safe harbor
B) Accredited investor
C) Caveat
D) Blind pool
Q:
Tom invested $20,000 in a limited partnership. His share of liabilities from mortgage debt was initially $45,000. The property suffered a loss in income during the first year, of which Tom's share was $5,000. However, in years two through four income allocated from the account equaled a total of $9,000 ($3,000 per year). The allocated reduction in debt at the end of year 4 from amortization of the loan is equal to $1,100. What is Tom's basis in the partnership interest at the end of year 4?
A) $67,900
B) −$9,900
C) $77,900
D) $70,100
Q:
Deductions for payment to a developer or syndicator for their covenants not to compete with a specific project are never allowed according to IRS rules.
Q:
A general partner is personally liable for the debts of the partnership whereas a limited partner has "limited liability" like shareholders in a corporation.
Q:
If a developer constructs some speculative buildings in hopes of identifying purchasers after completion, this is referred to:
A) Feasibility construction
B) Turnkey basis
C) Build to suit basis
D) Optional construction
Q:
Which of the following is FALSE regarding the release price?
A) It is usually calculated to pay off the loan when the last lot is sold
B) It is usually calculated to pay off the loan before the last lot is sold
C) Increasing the release price usually lowers the lender's risk
D) Increasing the release price is likely to lower the investor's initial cash flow
Q:
Which of the following might impact the density of housing in a land development project?
A) The price paid for the land by the developer
B) The terrain of the land
C) The target market's preferences regarding density
D) All of the above
Q:
The land development industry is best characterized by which of the following statements?
A) The land development industry is dominated by relatively few national competitors
B) The land development industry is highly fragmented, localized, and extremely competitive
C) Land development and project development are synonymous
D) The production technologies and market risks involved in land development are essentially the same as those in project development
Q:
Consider the feasibility study shown in the table. What is the return on total cost for the proposed project? Total sales revenue
$
10,000,000 Less: Development cost 6,000,000 Less: Land asking price 1,000,000 Potential gross profit
$
3,000,000 Less: Admin., legal, commissions, etc. 1,500,000 Potential net profit
$
1,500,000 A) 15.0%
B) 17.6%
C) 21.4%
D) 150.0%
Q:
Option contracts are used to reserve a parcel of land so that it will not be sold to someone else, while the developer does preliminary analysis of the site.
Q:
In determining whether a project is commercially viable given the prevailing market rents, land prices, and construction and financing costs, a developer would be likely to conduct a(an):
A) Feasibility analysis
B) Submarket analysis
C) Economic analysis
D) Multivariate analysis
Q:
Income after deducting loss of rents due to vacancy and nonpayment of rents, as well as any concessions, is referred to as:
A) Potential gross income
B) Effective gross income
C) Net operating income
D) Before-tax cash flow
Q:
Analysis of effective rents tends to be superior to analysis of total rents over the life of a lease.
Q:
Financing costs are usually paid by the lender to either the borrower/buyer or the seller.
Q:
General industry standards for a conventional loan specify a maximum LTV of 60 percent.