#2833 When considering a bi-weekly loan, one of the disadvantages is that it will take more time to build equity. Is this fact true or false ? Please remember to take your time. The solution is posted below the wildlife photo. A. False Equity will build much faster with a bi-weekly loan because the borrower is essentially making more yearly payments. 07/09/2014

#2832 Private mortgage insurance is usually required if the loan-to-value ratio exceeds 80%. Is this true or false ? Please remember to take your time. The solution is posted below the wildlife photo. A. True PMI (provate mortgage insurance) is most always required for loans which exceed 80% of the LTV (loan-to-value) ratio. 07/09/2014

#2831 A buydown is not an option when the lender is considering a way to help a buyer qualify for a loan. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. False The buydown will allow a third party or the seller to pay a sum to the lender which will lower the buyer's interest rate on the loan. By creating a reduction in the borrower's intitial payment it will make it easier for the borrower to qualify for the loan. 07/09/2014

real estate fraud: Mortgage Fraud Blog Update fro July 9, 2014 - 07/09/14 11:33 AM Mortgage Fraud Blog sends me an email once per week.  The Mortgage Fraud Blog website is updated every business day and you can always get the latest news by visiting www.mortgagefraudblog.com. Copyright 2004-2014 Rachel M. Dollar Legal Disclaimer. The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and … (0 comments) real estate fraud: Former Los Angeles Sher... 07/09/2014

At its March, April, and May meetings, the Tennessee Real Estate Commission (TREC) imposed significant fines ($250-$3,000) and additional penalties (classes, etc.) on forty-seven (47) individuals for the following offenses: Failure to adequately supervise activities of affiliates (MULTIPLE) Failure to adequately supervise advertising activities of affiliates (MULTIPLE) Advertising violation (Agent's name larger than the firm name) (MULTIPLE) Making a substantial and willful misrepresentation (MULTIPLE) Failure to complete and obtain a signed written disclosure of agency status form (MULTIPLE) Failure to maintain Errors and Omissions insurance (MULTIPLE) Failure to timely complete required education (MULTIPLE) An affiliate's acceptance of a commission from someone other than the broker w... 07/07/2014

#2830 If you think the appraisal on the property is too low you should request and submit a reconsideration request only if it is requested by a loan officer. Is this fact true or false ? Please remember to take your time. The solution is posted below the wildlife photo. A. False You don't have to wait on the loan officer. You can redefine and update your CMA, assess the items in the current appraisal that led to the low appraisal fiqure, and request reconsideration if you think it will be reviewed again. 07/06/2014

#2829 A property lost some value because it was close to a county landfill site. Ths is know as functionl obsolescence. Is this fact true or false ? Remember to take your time. The solution is posted below th wildlife photo. A. False When a property loses value because of some condition outside of, and nearby, the property this is know as external obsolescence. This is a curable condition. 07/06/2014

#2828 Most all sales comparison methods of appraisal are based on the assessed values of property as used for the purposes of establishing revenue for property taxes. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. False A sales comparison mehtod will rely on recent sales prices of properties reviewed as sales apply to comparable properties.. Expired and current listings are not included in the sales comparison method, although they may be included in a comparative market analysis or CMA. 07/06/2014

#2827 As a general rule, the appraiser will not use a sale as a com parable in his analysis unless the sale was considered to be an arm's length transaction.   Is this fact true or false ?   Please take your time. The solution posted below the wildlife photo.     A. True   Appraiser's don't include sales that aren't arm's length transactions, sales carried out under normal conditions carried out by an informed buyer and seller acting without pressure.   Location, the date of the sale and the type of financing might see their way into the process. 07/06/2014

#2826 When an appraiser is considering the value of a residential property the most valid and important method of appraisal that the appraiser will use is called the replacement cost method of appraisal. Is this true or false ? Take your time. The solution is posted below the wildlife photo. A. False When considering the value of residential property the most important method that the appraiser will employ is the sales comparison method because it has more of a bearing and is connected with the subject property at issue. 07/06/2014

#2825 A low risk loan is one that doesn't have to have a downpayment rather than a low loan-to-value ratio. Is this fact true or false ? Please take your time. the solution is posted below the wildlife photo. A. False From the lender's point of view the low loan-to-value ratio loan is the most desirable low risk loan. 80% ltv or lower is typically a low risk loan. Larger downpayments reduce default risk. Larger downpayments also help to insure that more of the original loan amount could be recovered in the event of a foreclosure sale. All Content Copyright Protected © 2014 07/06/2014

#2824 What part of an acre is 5,445 square feet ? The answers, along with the corresponding solution, will be posted below the photographs at the bottom of the page, so spend a little time on it before you make your way to the bottom. It helps to keep your math skills sharp. Hope you have a fine week ahead. A. one eighth of an acre. Divide 43,560 (the number of square feet in an acre) by 5,445 and you get eight. 07/06/2014

#2823 A homeowner has without warning, and without knowing, constructed a fence in his backyard about 7 inches over the property line of his neighbor. This would be considered an encroachment. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. True An encroachment is a building or impovement to a property or any portion of it that extends beyond the legal property limit of the owner constructing the improvement or building. An encroachment illegally intrudes on the land of the adjoining owner's property. 07/06/2014

  #2822 A lender charged a borrower 6% for the loan plus 6 discount points. The yield to the lender for the loan is 6.25%. Is this fact true or false ? Take your time. The solution is posted below the wildlife photo. A. False Discountpoints are a percentage of the amount of the loan. One point will equal 1 percent of the loan. Discount points raise the yield to the lender. Each point raises the yield by 1/8th of a percent. 1/8th is equal to .0125 of a percent. 6 points are 6 times .0125 which equal .75 The lender's yield will be 6.75 percent or 6 and 3/4 percent. 07/06/2014

   #2821 A broker's obligation to a customer includes the duties of full disclosure and obedience. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. False The duties of full disclosure and obedience are reserved for the principal, the broker's client. The broker has the obligation of dealing fairly and honestly with a customer. 07/06/2014

  #2820 A developer subdivided and made some improvements to a 150 acre parcel of land. The developer created several restrictions, which, by design, were placed in the deed to affect the subdivision. These restrictions affect all of the owners and are not enforceable by law. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. False The developer has created restrictive covenants and they are enforceable. 07/06/2014

#2819 Once the underwriter has been able to verify the amount of a borrower's stable monthly income, the underwriter will then use a process which will employ gross multipliers to determine whether or not the income is adequate enough to repay the loan that the applicant is seeking. Is this fact true or false ? Remember to take your time. The solution is posted below the wildlife photo. A. False Once the income has been verified the underwriter will use debt to income ratios to make a determination as to whether or not the applicants income is sufficient to repay the loan. 07/06/2014

#2818 The quality of a loan applicant's income generally depends on whether or not it's taxable income in the decision making process for the underwriter, and not as much the dependability of the income. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. False The dependability of the income will indicate to the underwriter that the source is reliable and secure. Whether the income is taxable or not is not an issue when establishing the quality of the income. 07/06/2014

#2817   Stacy is a college student that is buying her first home. She doesn't have enough money for the closing table so her parents have graciously offered to give her 4000 dollars to close with as a gift. In this situation the loan underwriter must reject the loan application by law because the gift may not be used by a first time home buyer. Is this true or false ? Please take your time. The solution is posted below the wildlife photo. A. False Stacy's parents are making a gift to their daughter to help her with her closing costs. The lender will require that her parents must provide a letter stating that the funds which they have given Stacy are a gift which she will never have to repay or reimburse them for. 07/06/2014

#2816 When the underwriter aquires the credit report of the applicant it will usually contain information pertaining to the applicants debt and payment history for the last ten years. Is this fact true of false ? Take your time. The solution is posted below the wildlife photo. A. False When information is obtained about a borrower from a credit report the information in the report usually only covers the last seven years, although certain items such as bankruptcies or foreclosures might remain longer. If you see information that is incorrect in your credit file alert the credit reporting agency and they will inform you of what you must do to correct inaccuracies. 07/06/2014