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structions | Resources for questions about Dime and the Simon Property Group he Simon Property Group https://www.sec.gov/ix?doc=/Archives/edgar/data/1022344/000155837021001700/spg-20201231x10k.htm Dime Community Bancshares https://www.sec.gov/ix?doc=/Archives/edgar/data/846617/000084661721000014/dcom-20201231x10k.htm |
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A mortgage loan is a loan secured by real property.
True
False
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QUESTION 2A 5/1 adjustable rate mortgage has affixed rate period for five years and then the rate can adjust once every year.
True
False
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QUESTION 3Adjustable-rate mortgages, or ARMs, have monthly payments that can move up and down as interest rates in the market fluctuate.
This is a risk to the borrower.
True
False
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QUESTION 4Base your answers to the following questions on data from:
If your credit score is 600 and you are trying to finance a $300,000 home in the zip code 11210 with a down payment of $60,000 the offers are 4% per year by lenders submitting quotes to Zillow..
https://www.zillow.com/mortgage-rates/#/vaEligible
Loan Purpose
Purchase
Zip Code
11210
Purchase Price
$300,000
Down Payment
20%
Credit Score
600
Military Veteran
No
Property Type
Single Family Home
How is home used
Primary Residence
First Time Buyer
Yes
Desired Loan Program
30 Year Fixed
Points
0
True
False
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QUESTION 5Base your answers to the following questions on data from:
If your credit score is 760 and you are trying to finance a $300,000 home in the zip code 11210 with a down payment of $60,000 the lender fees you must pay will be less than $500.
https://www.zillow.com/mortgage-rates/#/vaEligible
Loan Purpose
Purchase
Zip Code
11210
Purchase Price
$300,000
Down Payment
20%
Credit Score
760
Military Veteran
No
Property Type
Single Family Home
How is home used
Primary Residence
First Time Buyer
Yes
Desired Loan Program
30 Year Fixed
Points
0
True
False
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QUESTION 6Base your answers to the following questions on data from:
http://www.freddiemac.com/pmms/
The rates on 5/1 ARMs are currently higher than the rate on a 30 year fixed rate mortgages.
True
False
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QUESTION 7Base your answers to the following questions on data from:
https://www.zillow.com/mortgage-rates/#/vaEligible
As a persons credit score declines; his/her ability to secure mortgage credit will become more difficult and the cost of credit he/she does secure will increase.
Loan Purpose
Purchase
Zip Code
11210
Purchase Price
$300,000
Down Payment
20%
Credit Score
700-719 vs 760 and above
Military Veteran
No
Property Type
Single Family Home
How is home used
Primary Residence
First Time Buyer
Yes
Desired Loan Program
30 Year Fixed
Points
0
True
False
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QUESTION 8I am not able to make my mortgage payments. The amount I owe the lender is more than the value of my home. I ask the lender if I can do a short sale of my home. The lender agrees. The proceeds from the short sale are used to pay the lender. In some cases, this can be a less costly resolution to default than foreclosure for both the borrower and lender.
True
False
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QUESTION 9If a borrower would like to lower his/her monthly mortgage payments he/she can make a larger initial down payment.
True
False
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QUESTION 10If you buy a home all of your mortgage payments you make will increase the value of your equity in the home by that same amount.
True
False
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QUESTION 11If you issue a thrifty year fixed rate mortgage to finance the purchase of a home you are locked into this rate for thirty years even if interest rates decline over time. You have know way out of this contract other than default.
True
False
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QUESTION 12If your home’s value drops below your outstanding loan balance, you have negative equity.
True
False
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QUESTION 13In New York State, once you miss a single mortgage loan payment the lender has the right to immediately seize your property and sell it.
https://www.nycourts.gov/CourtHelp/pdfs/Foreclosureflowchart.pdf
True
False
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QUESTION 14Inflation reduces the real interest rate a borrower pays of the mortgage is a fixed rate mortgage.
True
False
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QUESTION 15Interest payments due on a fixed rate mortgage increase over time.
True
False
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QUESTION 16Interest payments due on a fixed rate mortgage increase over time.In other words the interest you owe in year one will be greater than the interest you owe in year 15 assuming your mortgage term is 30 years.
True
False
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QUESTION 17Payments are negative! Make sure you use the "-"sign. The minus sign. In Excel payments are negative numbers. Think of he money flowing away from you. Do not use the "$" sign. Just numbers no symbols. For example -6,234.16 is the way to answer.
Please find the payments a borrower owes based on the following data:
Use the PMT function. You must round to two decimal places.
rate | 3% |
nper | 10 |
PV | $200,000 |
FV | 0 |
Type | 0 |
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QUESTION 18Payments are negative! Make sure you use the "-"sign. The minus sign. In Excel payments are negative numbers. Think of he money flowing away from you. Do not use the "$" sign. Just numbers no symbols. For example -6,234.16 is the way to answer.
Please find the payments a borrower owes based on the following data:
Use the PMT function. You must round to two decimal places.
rate | 3% |
nper | 30 |
PV | $400,000 |
FV | 0 |
Type | 0 |
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QUESTION 19Payments are negative! Make sure you use the "-"sign.The minus sign. In Excel payments are negative numbers. Think of he money flowing away from you. Do not use the "$" sign. Just numbers no symbols. For example -6,234.16 is the way to answer.
Please find the payments a borrower owes based on the following data:
rate | 5% |
nper | 30 |
PV | $200,000 |
FV | 0 |
Type | 0 |
Use the PMT function. You must round to two decimal places.
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QUESTION 20Principal payments due on a fixed rate mortgage decline over time.
True
False
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QUESTION 21The APR or Annual Percentage Rate includes fees and points that a borrower must pay. This is why the APR is higher than the mortgage interest rate.
True
False
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QUESTION 22The bank offers to finance your home. The bank will lend you $200,000 for thirty years. The loan will be collateralized by the home you are buying. You are mortgaging your home in order to raise the $200,000. This is what is known as a mortgage loan. If you default the bank will have the right to foreclose on your property. The interest rate on your loan is 10%. Payments are made once a year at the end of the year.
Remember that payments are a negative number when working with Excel. If the PV is positive then the PMT will be negative. After thirty years the 30 year fixed rate mortgage is paid off whcih means that the future value is zero.
Do not use dollar signs. You can use the minus sign to denote a negative number.
What is your annual mortgage payment.
Use the PMT function in Excel.
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QUESTION 23The one-year treasury rate is never used as an index for an adjustable rate mortgage because the interest rate that the government pays never changes.
True
False
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QUESTION 24When a borrower misses a mortgage payment they have defaulted. They have broken the financial contract between themselves and the lender. This gives the lender the right to begin foreclosure proceedings. This could lead to the lender taking possession of the borrower’s home and selling it on the open market.
True
False
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QUESTION 25You are going to buy a home for $500,000. You are trying to decide between a issuing a 30 year fixed rate mortgage or a 15 year fixed rate mortgage to finance 80% of the price. Your objective is to have lower montlhy payments. The interest rate on the 30 year loan is 4.24% and on he 15 year loan the interest rate is 3.365%. You should choose the 15 year loan.
Use the following mortgage calculator
https://fm.fanniemae.com/homeownership/resources/financial-calculators/mortgage-calculator
True
False
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QUESTION 26A major market for Dime Community Bank is multifamily residential, commercial real estate lending.
True
False
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QUESTION 27A major source of funds for Dime Community Bancshares is core deposits.
True
False
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QUESTION 28Although The Dime Savings Bank of Williamsburg is a New York City based financial institution most of its loan portfolio consist of secure real estate loans issued to finance real estate in New Jersey.
True
False
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QUESTION 29Approximately 83% of Dime Community Bank’s loans are secured by real estate located in the NYC boroughs of Brooklyn, Queens and Manhattan as of December 31, 2018.
True
False
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QUESTION 30An important source of funds for Dime Savings Bank of Williamsburg is the sale of mortgages in the secondary market.
True
False
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QUESTION 31Bank managers at Dime Community Bancshares consider commercial real estate loans as riskier assets than both one-to-four family and multifamily residential real estate loans. This is partially because the borrower’s ability to repay the loan depends on the success of the commercial tenants who rent the property.
True
False
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QUESTION 32Bank managers at Dime Community Bancshares require a higher ratio of rental income to debt service for commercial real estate loans than multifamily loans.
True
False
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QUESTION 33Bank managers at Dime Community Bancshares require a property to generate sufficient rental income to cover a multiple of the debt service.
True
False
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QUESTION 34Dime Community Bancshares classifies a building as commercial real estate if less than 80% of the rental income is received from residential tenants.
True
False
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QUESTION 35Dime Community Bancshares lending activities consist solely of the origination of adjustable multifamily residential (generally buildings possessing a minimum of five residential units) and commercial real estate loans.
True
False
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QUESTION 36Dime Community Bancshares originates both adjustable-rate mortgages (“ARMs”) and fixed-rate loans.
True
False
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QUESTION 37Dime Community Bancshares specializes in making loans with very high loan to value ratios. Most of the loans originated by the bank will have loan to value ratios of 90%.
True
False
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QUESTION 38Dime Community Bancshares will not finance “mixed-use” properties. They are too risky.
True
False
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QUESTION 39Dime Savings Bank of Williamsburg makes loans secured by mixed-use properties. These loans are either classified as residential mixed use or commercial mixed use based upon the percentage of the property's rental income received from its residential as compared to its commercial tenants.
True
False
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QUESTION 40Generally, the interest rate on the commercial real estate loans originated by Dime Community Bancshares is equal to the 5-year Federal Home Loan Bank of New York advance rate.
True
False
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QUESTION 41Loan officers of Dime Savings Bank of Williamsburg consider only the future value of a property when deciding whether or not to make a loan.
True
False
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QUESTION 42Managers of Dime Community Bank have a policy of generally initiating foreclosure proceedings on real estate loans when a loan enters non-accrual status based upon non-payment.
True
False
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QUESTION 43The business of Dime Community Bank is insulated from changes in real estate values because it only makes variable rate loans.
True
False
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QUESTION 44The competitive advantage of Dime Community Bank is the willingness of its managers to originate loans to subprime borrowers.
True
False
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QUESTION 45The general range of commercial real estate loans on the balance sheet of Dime Community Bancshares is the is between $1.0 million to $5.0 million.
True
False
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QUESTION 46The multifamily residential loans on the balance sheet of Dime Community Bancshares typically carry shorter average terms to maturity than one-to-four family residential loans.
True
False
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QUESTION 47The principal business of Dime Community Bank is gathering deposits from customers within its market area and via the internet, and investing them primarily in money market securities.
True
False
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QUESTION 48The value of The Dime Savings Bank of Williamsburg is insulated from changes in the value of real estate.
True
False
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QUESTION 49While Dime Community Bank is based in Brooklyn; management has decided to focus its lending activity in New England which they believe is a much more conservative market area.
True
False
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QUESTION 50The Simon Property Group does not own malls it only manages malls.
True
False
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QUESTION 51As of December 31, 2020, the Simon Property Group rented from mall owners 203 income-producing properties in the United States, which consisted of 99 malls, 69 Premium Outlets, 14 Mills, four lifestyle centers, and 17 other retail properties in 37 states and Puerto Rico.
True
False
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QUESTION 52The Simon Property Group only makes equity investments in real estate it will not make secured loans backed by real estate.
True
False
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QUESTION 53The Simon Property Group relies on debt to finance real estate acquisitions and real estate development projects.
True
False
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QUESTION 54The Simon Property Group invests in employee development. Management believes that the success of Simon Property Group depends on their ability to retain the best talent.
True
False
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QUESTION 55The compensation scheme of the Simon Property Group is designed to attract specifically MBA graduates from IVY league schools in order to minimize the need to train and offer on the job training and development.
True
False
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QUESTION 56The performance of the Simon Property Group is linked to the commercial performance of their tenants.
True
False
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QUESTION 57The performance of the Simon Property Group is affected by both macro and micro economic conditions.
True
False
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QUESTION 58The performance of the Simon Capital Group is insulated from its cost of capital because the company does not borrow.
True
False
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QUESTION 59The Simon Capital Group insulates its operations from the performance of its tenants by buying commercial insurance to cover all defaults on leases.
True
False
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QUESTION 60Insurance premiums are a cost for the Simon Property Group.
True
False
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QUESTION 61A risk that the Simon property Group has to consider is that consumers will avoid traveling for shopping due to a heightened level of concern for safety in public places.
True
False
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QUESTION 62The Simon Property Group expects 30% of their anchor leases to expire in 2026. This is a result of poor management and poses a critical risk to the company.
True
False