Pane 1 I 2 Which factors represent characteristics of ARMS? Index b) Margins c) Reset Date Caps All of the above A significant increase in the payment amounts of an ARM due to an adjustment to the index is called? a) Sticker Shock Excessive Cost Payment Shock d) Dooms Day Reconciliation Fundamental relationships of loan refinancing include? terms on the present outstanding loan new loan terms being considered c) any fees associated with the existing or new loan d) all of the above 3 Which are not Economic Influences on Housing Demand? a) Employment b) Interest Rates IC) Population Growth d) Bankruptcy Factors e) Household Income 5 What are the reasons that one might consider rental housing? a) Lack of Funds for down payment b) Rise in interest rates c) Poor Credit history d) To avoid housing bubbles e) No desire to bear the risk of ownership f) Need for flexibility g) All of the above 1 Page 6 Which is not usually associated with a distressed property? a) Borrower inability to make mortgage payments b) Market value of the property below the mortgage balance c) Delinquent property taxes/property tax liens d) Timely payments of principal and interest e) Mechanics and/or construction loan liens f) Civil judgements/bankruptcy/divorce 7 Which item is not a source of Borrower Income? a) Part-time employment b) Commissions c) Social security d) Bonuses e) Public Assistance f) Income Tax Payments