The primary reason for the creation of the FHA was to provide: A. a secondary market for home mortgages B. origination of loans at below-market rates C. insurance for bank depositors
D. insurance for home loans made by institutional lenders Question 22 of 30 (worth 1 point) The repayment schedule for a mortgage loan calls for equal monthly payments of principal and interest for ten years, with a balloon payment of the remaining principal balance at the end of the ten-year period. This loan is: Question 23 of 30 (worth 1 point) The Truth in Lending Act requires a lender to disclose to the borrower all of the following, except: Question 24 of 30 (worth 1 point) Verification of self-employment income requires: Question 25 of 30 (worth 1 point) Which of the following elements in the underwriting decision is the most difficult for the lender to evaluate? A. The value of the property securing the mortgage B. The costs involved in originating the loan C. The degree of risk involved in the mortgage D. The conditions of the mortgage money market Question 26 of 30 (worth 1 point) Which of the following is a special feature of VA-guaranteed loans? Question 27 of 30 (worth 1 point) Which of the following is required for child support payments to be considered stable monthly income? Question 28 of 30 (worth 1 point) Which of the following is the best definition of a prepayment penalty? Question 29 of 30 (worth 1 point)
Which of the following will a Cal-Vet borrower receive when he has paid off the full loan amount? A. A land contract B. A grant deed C. A deed of reconveyance D. A deed of trust Question 30 of 30 (worth 1 point) - Answer Key: C Which of the following would be least likely to use a subprime lender?
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