Chapter one questions

Chapter 1

1.______ is creating a mortgage by lending money to real estate borrowers?
A. Underwriting
B. Securitization
C. Origination
D. Servicing
Answer is C, Origination.

2. ______ is a real estate professional specializing in providing an informed and defensible opinion of real estate value.
A. Leasing Agent
B. Market Researcher
C. Land Use Planner
D. Appraiser
Answer is D, appraiser.

3. A mortgage consists of ________
A. A note creating a loan.
B. A collateral agreement securing the loan.
C. An oral agreement
D. Both A and B
Answer is D, both A and B.

1. Real estate markets are characterized by product homogeneity. T/F

False, real estate markets are largely heterogeneous.

2. Information from a real estate transaction is considered to be public. T/F

False, information is considered to be private by parties to the transaction.

3. Real estate markets are extremely efficient markets. T/F

False, real estate markets tend to be largely inefficient.

4. A corporate form of real estate ownership that enjoys special tax treatment as long as specific investment and distribution are met is known as a 401K plan. T/F

False, it is known as a REIT, Real Estate Investment Trust

5. The secondary mortgage market is the sale of mortgages or assets derived from mortgages to investors. T/F

True