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82. In processing a loan, a commitment for private mortgage insurance would be required if the down payment was less than:a. 50%.                      b. 40%.                                          c 20%.                      d. none of the above.                     

49. Money market funds are:a. the same as mutual funds.                                             b. private noninsured investment accounts.                     c. held in the lender’s portfolio.d. none of the above.

44. An investment is said to be liquid when it:a. can be readily sold.                         b. is worthless.                 c. is guaranteed by the government.    d. is difficult to sell.   

30. FHLMC (Freddie Mac) is an example of:a. a secondary market participant.                              b. a primary market only participant.                                 c. a federal agency lender open only to veterans.d. none of the above.

37. Based on FNMA and FHLMC guidelines, mortgage interest rates are generally limited by lenders to an annual increase of:a. 2%.                                    b. 20%.                                     c. 200%.d. none of the above.

25. “One point” is:a. $1,000.00.                                     b. 1% of the sales price.                    c. 1% of the loan amount.d. none of the above.

99. According to the Mortgage Reform and Anti-Predatory Lending Act, a mortgage loan originator may only receive compensation that is based on:a. the borrower’s income above the national poverty rate.b. actual time spent working on the file.c. the lender’s cost of funds.d. the principal amount of a residential mortgage loan.  

32. What agency exists solely to provide a secondary market for farm mortgages?a. “Farmer Mac”                                               b. “Freddie Mac”                                               c. “Sally Mae”d. “Fannie Mae”

95. Bankruptcies must be reported on the loan application if they have occurred within the past:a. 3 years.                      b. 7 years.               c. 10 years.                 d. 15 years. 

85. The purchaser of an option is called:a. the optionor.                   b. the optionee.                    c. the lessee.                       d. none of the above.