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Unformatted text preview: D. Making below–market interest rate loans to home buyers. Buying and selling existing mortgages. Providing funds for needy sellers. Insuring loans for home buyers. 8. Which of the following is a major buyer and seller in the secondary mortgage market? A. B. C. D. FHA FNMA DVA Cal–Vet 9. In general, most monthly real estate loan payments are received by lenders: A B C D. On the 1st of the month Between the 1st and 10th of the month Between the 20th and 30th of the month On the 30th of the month 10. Which of the following is also significantly involved in the secondary mortgage market? A. B. Federal Reserve Board Federal Housing Administration
Dynasty School (www.dynastySchool.com) 7-15 REAL ESTATE FINANCE
C. D. California Housing Finance Agency Federal Home Loan Mortgage Corporation Answer Key: 1–B, 2–D, 3–B, 4–A, 5–A, 6–A, 7–B, 8–B, 9–B, 10–D 7-16 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 8: FINANCING INSTRUMENTS CHAPTER 8: FINANCING INSTRUMENTS PREVIEW
Just like any other professionals, real estate lenders use a variety of financing instruments to complete a real estate loan. In California, the major instruments of real estate finance are the promissory note, the deed of trust, and, to a lesser extent, the installment sales contract. In this chapter we will talk about these mortgage instruments, the meaning of voluntary money encumbrances (liens) their effects of security, and the various loan clauses that are used in the mortgage instruments. FINANCING INSTRUMENTS
Real estate loans in California generally are made using two instruments, promissory notes and security instruments (trust deed, mortgage or land contract). A promissory note is evidence of the underlying obligation of the loan transaction. Security instruments (trust deed or mortgage) are financing instruments used to identify the real estate that serves as assurance that the loan will be repaid. Usuall...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10