Question

“Subordination” is a method

Question 18 options:

	of altering the priority of claims to property by a written agreement.
	give constructive notice with change of ownership.
	deeding property to friend or neighbor.
	avoiding probate court when an owner dies intestate.

What is the purpose of the Federal Housing Administration?

Question 19 options:

	To encourage wider homeownership.
	To improve housing standards.
	To create a better method of financing mortgage loans.
	All of the above.

The Federal Housing Administration does which of the following?

Question 20 options:

	Insures loans to protect lenders in case of borrower default.
	Lends money to middle and low income home buyers.
	Builds affordable homes for low income families.
	Sets construction standards for any homes financed by a loan underwritten by Fannie Mae or Freddie Mac.

Answer 1

Answer 18 :- of altering the priority of claims to property by a written agreement.

( Explanation :- Under Subordination, the priority of claims to property are altered. Most of the mortgage agreements do have a clause as " Subordination clause which alters the lien position in mortgage)

Answer 19:- All of the above

( Explanation: Federal Housing Administration( FHA) was set up with the view of providing and encouraging wider home ownership. Along with that to provide support to housing sector and encouraging housing standards. FHA also provide home mortgage loan.)

Answer 20:-  Insures loans to protect lenders in case of borrower default.

( Explanation:- Federal Housing Administration( FHA) provides mortgage loans to lenders in order to provide them security in case of defaults done by borrowers of the loans.)