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THE DEVLIN FILES

THINGS TO ABSOLUTELY KNOW!

Many thanks to Mike Devlin for making these notes available!

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Devlin's Study Notes For The Final - Mr. Devlin was in one of my classes several years ago. As he sat in class, Mr. Devlin made note of everything I said was important. He then went home and made a questions our of his notes. Mr. Devlin was kind enough to make it available to me so I can make it available to other students. This a great study tool. It goes without saying that this is also great for the state test.

1). What are the three physical characteristics of land ? 
"A). "PIN" - PERMANENCE, IMMOBILITY, NONHOMOGENEITY"

2). What are the two ways of referring to the "bundle of rights"" ?" 
A). ""PDQC"" - POSSESSION, DISPOSITION, QUIET ENJOYMENT, CONTROL
B). ""SLUGER"" - SELL, LEASE, USE, GIVE AWAY, ENTER,
  REFUSE TO DO ANY OF THESE.

3). How is real property transferred? 
A). REAL PROPERTY IS TRANSFERRED BY DEED

4). How is personal property transferred? 
B). PERSONAL PROPERTY IS TRANSFERRED BY BILL OF SALE.

5). What was the ""feudal"" system of land ownership? 
A). ALL LAND IS OWNED BY THE KING

6. What type of system allows private ownership? 
A). PRIVATE OWNERSHIP IS CALLED THE ALLODIAL SYSTEM OF OWNERSHIP.

7). What does the term ""fee"" imply in ownership or estates? 
A). THE TERM ""FEE"" IMPLIES THE INHERITABILITY 

8). How does one know that a builder will finish installing 
streets, curbs, sidewalks, etc ? 

A). A ""PERFORMANCE BOND"" IS REQUIRED ON THE BUILDER

9) What is the highest form of ownership? 
A). THE HIGHEST FORM OF OWNERSHIP IS: FEE SIMPLE ABSOLUTE

10). What are the three types of legal life estates ? 
A). THE THREE TYPES OF LEGAL LIFE ESTATES ARE: DOWER, 
CURTESY AND HOMESTEAD.

11). What is a dower estate? 
A). THE WIFE'S INTEREST IN HUSBAND'S REAL PROPERTY (NOT VALID ILLINOIS)

12). What is a curtsey estate? 
A). THE HUSBAND'S INTEREST IN WIFE'S REAL PROPERTY (NOT VALID ILLINOIS)

13). What is a homestead estate ? 
A). PROTECTION FROM GENERAL CREDITORS, $15,000 PER OWNER 
RESIDING IN THE PROPERTY - MAXIMUM OF $30,000.00 (includes 
non-owner spouses residing in the property.

14). What is a debenture ? 
A). A DEBENTURE IS A LONG TERM UNSECURED NOTE

15). What are characteristics of "tenancy in common"? 
A). SHARES DO NOT HAVE TO BE EQUAL, UNDIVIDED INTEREST IN
WHOLE PROPERTY, INHERITABLE, NO RIGHT OF SURVIVORSHIP, 
EQUALLY RESPONSIBLE FOR EXPENSES, EQUALLY ENTITLED TO
  PROFITS, MAY BE PARTITIONED.

16). What are the characteristics of tenancy by the entirety? 
A). MUST BE MARRIED, EQUAL INTEREST'S, RIGHT OF SURVIVORSHIP, 
PITT+P, PERMISSION TO SELL IS REQUIRED, DIVORCE CONVERTS TO 
TENANCY IN COMMON, CANNOT BE PARTITIONED, IN ILL. ONLY 
PRINCIPAL RESIDENCE.

17). What are the characteristics of joint tenancy? 
A). RIGHT OF SURVIVORSHIP, EQUAL SHARES, RESPONSIBLE FOR EXPENSES 
EQUALLY, NOT INHERITABLE, PITT, CAN BE PARTITIONED.

18). What are the characteristics of community property? 
A). SEPARATE PROPERTY, HUSBAND AND WIFE ACQUIRE TITLE AS 
COMMUNITY PROPERTY, SURVIVORSHIP RIGHTS VARY STATE TO STATE.

19). What are the types of ownership? 
A). THERE ARE THREE: SEVERALTY, CONCURRENTLY AND COMBINATION OR HYBRID.

20). What is ownership by severalty? 
A). OWNERSHIP BY ONE, A PERSON, CORPORATION, A LAND TRUST.

21). How or who can 'open' a trust to get beneficiary, trustor etc.? 
A). THREE WAYS TO OPEN A TRUST: IRS OR COURT ORDER, IF LEASED 
TO GOVERNMENT OR IF BUILDING CODES VIOLATIONS EXIST.

22). What are the forms of concurrent ownership? 
A). THERE ARE 4 TYPES: JOINT OWNERSHIP, TENANCY IN COMMON, 
TENANCY BY THE ENTIRETY AND COMMUNITY PROPERTY.

23). What are the forms of combination or hybrid ownership? 
A). THERE ARE 3 TYPES: CONDOMINIUMS, COOPERATIVES AND TIMESHARES.

24). What is the name of the act that governs condominiums ? 
A). THE ILLINOIS CONDOMINIUM PROPERTY ACT OF 1963, AKA HORIZONTAL
  PROPERTY ACT.

25). Who holds title to a building in a cooperative?
A). THE CORPORATION HOLDS TITLE.

26). What is the name of the act that governs timeshares? 
A). THE ILLINOIS REAL ESTATE TIMESHARE ACT (1985), ADMINISTERED 
BY THE DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION, 
3 DAYS TO CANCEL THE CONTRACT. POS MUST BE GIVEN. 

27). What are the two ways to buy timeshares? 
A). FEE SIMPLE AND RIGHT TO USE

28). What are the rules for ownership in a Real Estate partnership? 
A). NO SALESPERSON OR GROUP OF SALES PERSONS CAN OWN MORE THAN 
49 % OF THE INTEREST IN THE PARTNERSHIP STOCK.

29). What is the Limited Liability Company Act of 1994 for? 
A). PROVIDES THE PROTECTION OF A CORPORATION AND TAXED AS A 
PARTNERSHIP, MEMBERS ONLY LIABLE FOR AMOUNT OF THEIR INVESTMENT 

30). What are the 'blue sky laws and who administers them? 
A). THESE ARE STATE SECURITY LAWS AND SEC. OF STATE ENFORCES 

31). What are encumbrances? 
A). ANYTHING THAT HINDERS OR LIMITS TITLE OR LESSENS THE 
BUNDLE OF RIGHTS SUCH AS EASEMENTS, LIENS, RESTRICTIVE COVENANTS 
AND ENCROACHMENTS. 

32). What is an easement? 
A). THE NONPOSSESSORY RIGHT TO USE THE LAND OF ANOTHER AND 
THEY CAN BE CREATED BY LAW, INDIVIDUALS, USE, GRANT OR RESERVATION. 
THERE ARE 2 TYPES: GROSS AND APPURTENANT.

33). Who benefits and who doesn't benefit from an easement? 
A). THE DOMINANT TENEMENT BENEFITS, THE SERVIENT TENEMENT SUFFERS.

34). What are the classifications of lienss of liens? 
A). THERE ARE 2 CLASSIFICATIONS OF LIENS - VOLUNTARY AND INVOLUNTARY.

35). What are voluntary' liens? 
A). THERE ARE 3 TYPES, MORTGAGES, VENDORS, AND VENDEES.

36). What is the priority of liens? 
A). REAL ESTATE TAX LIENS TAKE PRIORITY OVER ALL OTHER LIENS.

37). Describe Illinois Mechanic Liens? 
A). PROVE THE WORK WAS ORDERED BY THE OWNER OR THE OWNERS 
AGENT, FILE WITHIN 4 MONTHS OF COMPLETING WORK, LIEN ATTACHES 
AS OF THE DATE WORK ORDERED OR CONTRACT SIGNED AND MECHANIC 
HAS 2 YEARS TO ENFORCE.

38). How are liens enforced? 
A). LIENS ARE ENFORCED BY FORECLOSURE.

39). What is the transfer tax formula? 
A). $.75 PER $500 OF SALES PRICE OR ANY FRACTION,
SPLIT $.50 TO STATE, $.25 GOES TO COUNTY.

40). A home is sold for $95,000.00 How much transfer tax
is owed to the state ? 

A). $95,000 / 500 = 190, 190 X .50 = $95.00 (STATE TAX)

41). What is the IHDA? 
A). ILLINOIS HOUSING DEVELOPMENT AUTHORITY.

42). In zoning, what is FAR? 
A). FAR = FLOOR AREA RATIO.

43). With who does the Illinois Plat Act require deeds recorded? 
A). THE RECORDER OF DEEDS OFFICE

44). In accordance with Interstate Land Sales Full Disclosure Act, 
with whom does the developer file a Statement of Record ? 

A). IT MUST BE FILE WITH HUD, 25 LOTS OR MORE, UNIMPROVED 
LOTS, PURCHASER GETS A COPY WITH 7 DAYS TO CANCEL CONTRACT.

45). Describe the Illinois Land Sales Registration Act? 
A). REGISTRATION NOT A LICENSE ACT, 25 OR MORE LOTS, LOCATED
  IN OR OUT OF ILLINOIS WITH 7 DAYS TO CANCEL. 

46). What is FEMA and what is a flood plain? 
A). FEMA IS FEDERAL EMERGENCY MANAGEMENT AGENCY AND A FLOOD PLAIN
  IS A NATURAL STORAGE AREA FOR EXCESS WATER FROM RAIN OR MELTING SNOW.

47). ---- PURPOSELY ERADICATED ---

48). What are the types of Land Use Controls? 

A). THERE ARE 2, PUBLIC AND PRIVATE.

49). What are private land use controls? 
A). DEED RESTRICTIONS AND DEED CONDITIONS.

50). In Tenancy terms what is PITT? 
A). PITT = POSSESSION, INTEREST, TITLE, TIME.

51). What is the definition of brokerage? 
A). THE BUSINESS OF BRINGING BUYERS AND SELLERS TOGETHER AND 
ASSISTING IN NEGOTIATIONS FOR THE TERMS OF SALE OF REAL ESTATE.

52). What does a power of attorney do in regards to agency? 
A). IT STETS UP A SPECIAL AGENCY.

53). What are the duties and liabilities of agents ? 
A). C-O-L-A-N CARE, OBEDIENCE, LOYALTY, ACCOUNTABILITY, NOTICE

54). What is the seller-broker relationship under common law? 
A). SELLER IS PRINCIPAL, BROKER IS SELLERS AGENT, BUYER IS CUSTOMER.

55). When can an agent disclose confidential information? 
A). A DESIGNATED AGENT MAY DISCLOSE CONFIDENTAIL INFORMATION 
TO HIS SPONSORING BROKER FOR THE PURPOSE OF SEEKING ADVICE 
OR ASSISTANCE FOR THE BENEFIT OF THE CLIENT.

56). What about known material defects? 
A). AN AGENT MUST ALWAYS REVEAL KNOWN MATERIAL DEFECTS.

57). According to Article 15 what are ministerial acts ?
A). THOSE ACTS THAT ARE INFORMATIVE IN NATURE THAT DO NOT
RISE TO A ACTIVE LEVEL OF REPRESENTATION ON BEHALF OF THE CUSTOMER
- RESPONDING TO PHONE INQUIRIES BY CONSUMERS
- ATTENDING AN OPEN HOUSE AND RESPONDING TO QUESTIONS
- SETTING UP APPOINTMENTS TO VIEW PROPERTY
- ACCOMPANYING AN APPRAISER, INSPECTOR, ETC TO VISIT A PROPERTY
- DESCRIBING A PROPERTY IN RESPONSE TO CONSUMERS INQUIRY
- COMPLETING BUSINESS INFO FOR CONSUMER ON OFFER TO PURCHASE
- REFERRAL TO ANOTHER BROKER OR SERVICE PROVIDER

58). What is a net listing and are they legal? 
A). A NET LISTING WHEN SELLER SAYS, I WANT TO CLEAR XX DOLLARS 
FROM THIS DEAL, SELL IT FOR ANYTHING YOU WANT, KEEP THE REST.
- THEY ARE LEGAL IN ILLINOIS, BUT AGAINST THE CODE OF ETHICS 
OF THE NATIONAL ASSOCIATION OF REALTORS.

59). What are referral fees and who can receive them? 
A). AN ATTORNEY CANNOT RECEIVE REFERRAL FEES
(UNLESS A LICENSED BROKER), 
A BROKER IN ANOTHER STATE, (YES), 
A BUYER, (YES, ITS AN INDUCEMENT)

60). What is the Sherman Anti-trust Act prohibit? 
A). FEDERAL LAW - 2 OR MORE BROKERS: FIX PRICES, 
ACCEPT OF CERTAIN, TYPES OF LISTINGS OR TERMS OF 
LISTINGS, BOYCOTTING, TERRITORIAL ALLOCATIONS, 
TYING ARRANGEMENTS (CAN'T BUY WITHOUT LISTING YOURS)

61). How can you tell an Employee from an Independent Contractor? 
A). MANY WAYS, THE EMPLOYEE IS SUBJECT TO A
  LOT OF CONTROL - MIGHT EVEN WEAR A UNIFORM.

62). What is the formula for calculating commissions? 
A). PART OVER PERCENT TIMES TOTAL (PART / % X TOTAL)

63). What is the rule when calculating using expenses? 
A). ADD THE EXPENSES TO THE DESIRED NET BEFORE DIVIDING

64). The Civil Rights Act of 1866 prohibits what?
  A). DISCRIMINATION BASED ON RACE ONLY

65). The Civil Rights Act of 1968 in regard to Handicapped
  persons includes what? 

A). PEOPLE WITH AIDS, HIV, CANCER AND OTHER TERMINAL ILLNESSES.

66). What is the definition of Housing for the Elderly? 
A). ALL UNITS OCCUPIED BY THOSE 62 OR OVER OR 80% ARE 55 AND OVER.

67). Give an example of 'discriminatory advertising ? 
A). USING WORDS "ST. BEDES PARISH"", (STUDENT SHOULD SAY DO NOT USE) 

68). What are the possible exceptions to the 1968 Civil Rights Act? 
A). RELIGIOUS ORGS ARE EXEMPT IF ONLY FOR USE BY MEMBERS 
- LODGINGS OF PRIVATE CLUB NOT OPEN TO PUBLIC (NON-COMMERCIAL) 

69). When is there never an exemption to 1968 Civil Rights Act ? 
A). WHEN DISCRIMINATORY ADVERTISING HAS BEEN USED AND REMEMBER 
RACE IS STILL A VIOLATION OF 1866 ACT. ALSO SAME SEX RENTALS ARE OK. 

70). What are City of Chicago, Cook County discrimination laws, 
who is covered? 

A). NRCRSHF- (NOW RICE CAN REALLY SELL HOMES FAST) 
- N = NATIONAL ORIGIN (HUMAN RIGHTS ACT BELOW)
- R = RACE ALSO REMEMBER "MAMAS"
- C = COLOR M = MILITARY DISCHARGE
- R = RELIGION A = AGE
- S = SEX 
  M = MARITIAL STATUS
- H = HANDICAPPED A = ANCESTRY
- F = FAMILIAL STATUS S=SEXUAL ORIENTATION
- P =ORDER OF PROTECTION 

Since Mr. Devlin was in class - two more protected classes
  have been added added to the Illinois Human Rights Act - 
Sexual Orientation and Persons Protected Under 
an Order of Protection

--------------------------------

71). The Americans with Disabilities Act was passed in 
1992, who enforces it? 

A). THE U.S. ATTORNEY GENERAL 

72). What are the two (2) classifications of contracts?
  A). EXPRESS/IMPLIED (EACH PARTY KNOWS OBLIGATIONS) 
- UNILATERAL(ONE PARTY MAKES PROMISE)/BILATERAL(BOTH PARTIES)

73). When is a contract void? 
A). FORGERIES, LACK OF CONSIDERATION, INSANITY" (IF NOT 
ONE OF THESE - chose VOIDABLE)

74). What is the Statute of Frauds time period for leases ? 
A). LEASES 'OVER' 1 YEAR (YEAR AND A DAY) MUST BE IN WRITING

75). What did the Quinlan-Tyson Decision of 1966 state ? 
A). UNAUTHORIZED PRACTICE OF LAW BY BROKERS AND FILLING 
IN BLANKS ON A CONTRACT -- REMEMBER -- NEVER 'ADD' TO A CONTRACT.

76). What is the age of majority in Illinois? 
A). MUST BE 18 YEARS OF AGE

77). What is novation? 
A). WHEN ONE PARTY GETS ANOTHER TO REPLACE 
THEM IN A CONTRACT

78). What is the time frame for Lead Based Paint disclosures? 
A). AFFECTS SALE OR RENTAL OF DWELLINGS BUILT BEFORE 1978.

79). What is assignment? 
A). In assignment you are not discharged from a contract (like subletting).

80). What are the types of listings ? 
A). THERE ARE 3, OPEN (ANYONE CAN SELL), 
- EXCLUSIVE AGENCY, (SELLER AND 1 BROKER CAN SELL, 
MUST BE IN WRITING WITH EXPIRATION DATE, "
- EXCLUSIVE RIGHT TO SELL (BROKER ONLY, WRITING, EXP DATE)

81). What is required on a written listing? 
A). EXPIRATION DATE IS REQUIRED.

82). ***** ANY QUESTION WHERE BROKER MADE A LOT OF MONEY ******* 
BROKER DID SOMETHING WRONG.


83). When do you negotiate price in regards to options ? 
A). PRICE IS NEGOTIATED AT BEGINNING OF CONTRACT PERIOD.

84). What is meant by 'caveat emptor' and how does in 
relate to Illinois law? 
A). 'BUYER BEWARE' AND SELLERS AND BROKERS MUST REVEAL 
KNOWN MATERIAL DEFECTS (PATENTS) AND HIDDEN ONES (LATENT).

85). What will the death of 1 party cause? 
A). A LISTING CONTRACT TO BE CANCELLED, BUT NOT ANY 
OTHER TYPE OF CONTRACT.

86. What is 'puffing'? 
A). EXAGGERATION OF THE TRUTH.

87). What is the purpose of the Illinois Real Estate License Law? 
A). EVALUATE COMPETENCY OF BROKERS AND AGENTS, REGULATE 
BUSINESS FOR PROTECTION OF PUBLIC. IDFPR  ADMINISTERS THE ACT.

88). What are licensed activities? 
A). SELL, EXCHANGE, PURCHASE, RENT, ETC. FOR ANOTHER 
AND FOR COMPENSATION.

89). How many members of the Real Estate discliplinary Board are there? 
"A). THERE ARE 9 MEMBERS

90). What may an unlicensed personal assistant do? 
A). DRAFT ADVERTISING AND PROMO MATERIAL FOR LICENSEE APPROVAL
- PLACE ADVERTISING
- SCHEDULE APPOINTMENTS (NO TELEMARKETING)
- RESPOND TO QUESTIONS BY QUOTING DIRECTLY FROM PUBLISHED SOURCE
- PREPARE AND DISTRIBUTE FLYERS UNDER DIRECTION OF 
LICENSEE WHO MUST BE PRESENT

91). What can't an unlicensed personal assistant do ? 
A). HOST AN OPEN HOUSE, SHOW PROPERTY, INTERPRET INFORMATION,
- EXPLAIN CONTRACT, LISTING OR ANY REAL ESTATE DOCUMENT
- NEGOTIATE OR AGREE TO COMMISSION ON BEHALF OF LICENSEE
- PERFORM ANY ACTIVITY FOR WHICH LICENSE IS REQUIRED

92). Who is responsible for the actions of an unlicensed personal assistant? 
A). THE LICENSEE AS WELL AS THE BROKER ARE RESPONSIBLE.

93). What are misc. items in Physical Location of Real Estate office? 
A). OFFICE CANNOT BE IN RETAIL OR FINANCIAL BUSINESS UNLESS SEPARATE.

94).                  ----- purposely eradicated------  
Material changed since Mr. Devlin was in class

--------------------------------------------- 

95). After passing state exam how long does one have
  to become licensed ? 
A). PERSON HAS 1 YEAR TO BECOME LICENSED

96). What is the definition of 'conversion' of funds? 
A). USING THE MONIES IN BUSINESS ACCOUNT FOR 
PERSONAL PURPOSES.

97). What is the definition of commingling of funds? 
A). MIXING MONIES WITH PERSONAL AND BUSINESS.

98). What are the requirements of a written listing agreement? 
A). THERE ARE TWO, MUST BE IN WRITING AND CONTAIN EXPIRATION DATE.

99). Can a Real Estate license be revoked before it is suspended? 
A). YES

100). The Real Estate Recovery Fund who administers 
and what are financial limits? 

A). IDFPR ADMINISTERS THE REAL ESTATE LICENSE ACT,
$10,000.00 PER aggrieved individual, $50,000.00 max per incident
Attorneys fees limited to 15%

101). WHAT ARE THE ONLY TYPES OF DAMAGES 
COVERED BY RECOVERY FUND? 
A). Only Compensatory or Actual damages are awarded.

102). WHAT IS THE BENEFIT OF A LIMITED 
LIABILITY COMPANY (LLC)? 
A). It provides the protection of a corporation but is taxed as a partnership.

103). IN A TENANT/LANDLORD LEASE SITUATION WHO OWNS
  THE SECURITY DEPOSIT? 
A). THE TENANT OWNS THE SECURITY DEPOSIT.

104). What are the time restraints in dealing worth escrow funds? 
A). MUST BE DEPOSITED NOT LATER THAN NEXT BUSINESS DAY 
AFTER THE ACCEPTANCE OF THE CONTRACT.

105). What is the retention period for Reconciled Bank Statements? 
A). RECONCILIATION MUST BE KEPT FOR 3 YEARS

106). What is required about employment contracts? 
A). THEY MUST BE IN WRITING FOR EACH PERSON.

107). What are the 5 requirements for Advertising ? 
A). BUSINESS NAME MUST BE ON ALL ADVERTISING, 
CANNOT BE FRAUDELENT, DECEPTIVE OR INHERENTLY MISLEADING 
A SALESPERSON CANNOT ADVERTISE IN THEIR OWN NAME 
ALL ADVERTISING UNDER DIRECT SUPERVISION OF BROKER
SALESPERSON CANNOT LIST THEIR NAME IN PHONE
BOOK W/O BROKERS NAME.

108). What is the timeframe for filing for rehearing by accused ? 
A). WITHIN 20 DAYS OF FINDINGS , THE ACCUSED MAY 
MOTION FOR A (appeal) REHEARING BASED ON PARTICULAR GROUNDS.

109). What are some requirements for wills in Illinois ? 
A). MUST BE WRITTEN BY SOUND MIND AND OVER 18 YEARS OF AGE
MUST BE SIGNED BY TESTATOR (WILLMAKER)
MUST BE WITNESSED BY 2 OR MORE PERSONS NOT BENEFICIARIES.

110). ACCORDING TO ILLINOIS LAW OF DESCENT AND 
DISTRIBUTION, WHAT HAPPENS TO DECEASED PARENTS 
SHARE OF SINGLE, INTESTATE PERSON? 

A). The surviving parent receives the deceased parents share.

111). IF ONE DIES WITH OUT A WILL (INTESTATE AND 
NO HEIRS) WHAT HAPPENS TO PROPERTY ? 

A). In Illinois, Real property to county, personal property to state.

112). WHO BENEFITS FROM TACKING? 
A). The current owner of the property would benefit.

113). WHAT ARE SOME ESSENTIAL ELEMENTS OF A VALID DEED? 
A). WORDS OF CONVEYANCE (GIVEN, GRANTED, BARGAINED, CONVEYED,)
HABENDUM CLAUSE (LEGAL INTEREST), NOT REQUIRED IN ILLINOIS.

114). WHAT ARE THE 5 TYPES OF DEEDS that a student
  has to know everthinga about? 
A). General Warranty, Special Warranty, Quit Claim, 
Grant, Grant-Bargain-Sale.

115). WHAT ARE THE 6 TYPES OF COVENANTS? 
A). Covenants of seisen, right to convey, against encumbrances, 
quiet enjoyment, further assurances and warranty forever.

116). WHAT TYPE OF DEED IS MOST COMMON? 
A). A General Warranty Deed is most common.

117). WHAT ARE TWO TYPES OF FORECLOSURES? 
A). Judicial (only type valid in Illinois) and Power of Sale

118). WHAT IS A SURETY BOND ? 
A). This will financially protect a client if a property manager
  steals the rents or security deposit?

119). WHAT IS A PERFORMANCE BOND? 
A). This will insure that performance is completed.

120). DEFINE A SUBJECT TO EXISTING MORTGAGE SALES TRANSACTION. 
A). The buyer is not personally liable to payoff existing mortgage.

121). WHAT IS AN ASSUMPTION TRANSACTION? 
A). The buyer is responsible, then the original borrower is liable for mortgage.

122). Who or what is the largest Residential Loan Maker ? 
A). SAVINGS AND LOAN ASSOCIATIONS

123). THE FDIC INSURES WHAT? 
A). FDIC insures deposits in FDIC approved institutions up to $100,000 per person

124). WHAT ARE MUTUAL SAVINGS BANKS ? 
A). They have assets largely in Real Estate and are Depositor owned.

125). WHAT IS A MORTGAGE BANKER? 
A). One who lends his own money or borrows to lend it 
and is around to service loan.

126). WHAT IS RECD (FmHA - FarmersHome Administration) AND HOW
  DOES IT DIFFER FROM FHA or VA? 
A). Rural Economic Community Development, lends it's own money.
FHA 'INSURES' LOANS AND VA 'GUARANTEES' LOANS.

127). WHAT IS FNMA? 
A). Fannie Mae, started in 1934, only buys Convential loans. (PUBLICLY OWNED)

128). WHAT IS GNMA? 
A). Ginnie Mae, regulated by HUD, buys VA/FHA loans, founded in 1968.

129). WHAT IS FHLMC? 
A). Federal Home Loan Mortgage Corporation, federal charter in 1970

130). WHO IS LARGEST BUYER OF RESIDENTIAL MORTGAGES
  ON SECONDARY MARKET? 
A). Fannie Mae is largest purchaser.

131). ON STATE TEST --- WHAT IS A STATUTORY YEAR 
A). It has 12 months, each with 30 days, a total of 360 days.

132). WHAT ARE THE THREE TYPES OF INTEREST MATH PROBLEMS ? 
A). Proration, Interest over Life of Loan and Amoritization.

133). WHAT ARE THE TYPES OF CONVENTIONAL LOANS? 
A). 15 year, 30 Year, Open-end, Adjustable rate, Graduated Payment,
Shared Appreciation, Wrap-around, Package, Construction, Growth Equity
Participation, Blanket, Purchase Money Leasehold and Take-out.

134). WHAT IS PMI AND HOW DOES IT WORK? 
A). Private Mortgage Insurance, only on conventional loans, 
needed if equity less tan 20% first year payment made at closing, 
monthly payments thereafter.

135). What is the FHA? 
A). Federal Housing Administration insures full mortgage amounts.

136). What is the VA? 
A). Veterans Affairs, only guarantees partial mortgage amount.

 

 

 

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Last updated 04/02/10