front 1 The deed to secure debt (security deed), commonly used by lenders who make residential real estate loans in Georgia, serves to | back 1 convey absolute title from the buyer to the lender |
front 2 An associate broker representing a seller notices during a closing that the closing attorney asks the sellers and the buyers to leave some signature lines blank because they will be "signed" later for the parties by the attorney. In this situation, the associate broker | back 2 should immediately report the activity as suspicious to her broker. |
front 3 The closing agent for a residential real estate transaction in Georgia | back 3 must be a licensed attorney. |
front 4 In a loan underwriter's evaluation of a borrower's ability to afford the monthly loan payment, the front-end ratio for a budget mortgage is calculated by dividing the borrower's | back 4 total PITI payment by that party's total monthly income |
front 5 In qualifying a borrower for a loan, a lender considers the borrower's sources and amounts of stable monthly income. Typically, the lender will consider all of the following as stable monthly income EXCEPT | back 5 income from several temporary jobs. |
front 6 Unpaid property taxes for the calendar year would show up on the Estimated Net to Seller form as a | back 6 debit to the seller. |
front 7 Which of the following statements is TRUE regarding the Georgia Residential Mortgage Fraud Act? | back 7 Georgia law defines mortgage fraud as a racketeering activity by the parties involved. |
front 8 The acceleration clause in a promissory note | back 8 gives the lender the right to call the entire loan balance due upon the borrower's default in making loan payments. |
front 9 A valid and enforceable security deed in Georgia would require which of the following provisions? | back 9 Identification of the borrower as the grantor and the lender as the grantee |
front 10 At a residential real estate closing, the warranty deed is signed by the | back 10 seller, the attorney, and an unofficial witness |
front 11 In order to determine the back-end ratio for a borrower's loan, the total | back 11 recurring monthly debt is divided by gross monthly income |
front 12 The sale of a rental property has a closing date of March 26. The monthly rent of $1,500 is collected on the 15th day of every month. How much rent proration would the seller owe the buyer at closing? | back 12 $919.35 |
front 13 Aside from the stability of an applicant's monthly income and how that income measures against that party's recurring monthly debt, what other factors must the underwriter take into account when making a decision on final loan approval? | back 13 Applicant's credit profile, sufficient cash to close, and appraised value of the property the borrower will purchase |
front 14 At closing, when property taxes have been prepaid by the seller for the calendar year, the | back 14 seller will be credited for the period starting the day after closing. |
front 15 Georgia's equitable-right-of-redemption process allows a defaulted borrower to | back 15 pay off the loan, with interest, costs, and fees, before a foreclosure sale. |
front 16 Commonly in Georgia, a licensee affiliate attends the closing in what primary capacity? | back 16 As a representative of the licensee's broker |
front 17 A home sells for $275,000, and the buyer assumes the seller's existing loan balance of $125,000. What is the transfer tax on this property? | back 17 150. |
front 18 At closing, the closing agent usually will debit the buyer how many months of hazard insurance payments from the buyer? | back 18 Two Months |
front 19 If a closing takes place on September 10, and the balance on the seller's existing loan as of the September 1 payment was 115,000 at 5% interest, what would the seller's total loan payoff be as of closing day, including the accrued interest. Use 360 days for prorating. | back 19 The answer is $115,159.72. Because the seller's last payment on September 1 paid the loan interest in arrears for August, and the seller will not make an October 1 payment since the property is sold as of September 10, the seller will owe the lender 10 days of interest accrued from September 1 to September 10. The loan balance of $115,000 × the interest rate of 5% = annual interest of $5,750 ÷ 360 = daily interest of $15.9722 × 10 days = $159.72 of accrued interest on the loan. The $159.72 added to the loan principal balance of $115,000 puts the loan payoff at $115,159.72. |
front 20 A real estate transaction closes on November 30, and the seller prepays $1,000 annually for a hazard insurance policy. If the renewal date for that policy every year is May 10, what will be the prorated credit to the seller for that policy at settlement? Use 365 days for the proration. | back 20 $438.36 |
front 21 The closing attorney in a real estate transaction typically represents the | back 21 lender |
front 22 The closing attorney will sometimes have a party sign a quitclaim deed before or at the closing. A common use of such a deed in Georgia may include | back 22 relinquishing a spouse's interest in a property when the seller's divorce is pending. |