Practice Exam Sales License

A  Taxpayer Relief Act of 1997

B  Homeowner Affordability and Stability Plan

C  American Taxpayer Relief Act of 2012

D  Mortgage Forgiveness Debt Relief Act of 2007

A  Four goals

B  Six regional citizen-led initiatives

C  Three data collection systems

D  12 departments

A  Pays bills owed by the U.S. government.

B  Investigates financial crimes including tax evaders.

C  Produces currency and coins.

D  Supervises national banks and financial institutions.

A  Each tranche has specific rules for distributing income received from the collateral, and has differing balances, maturities, and risks.

B  Each tranche has specific rules for distributing income received from the collateral, but is organized so that each tranche has a similar maturity.

C  Each tranche has specific rules for distributing income received from the collateral, but is organized so that each tranche has a similar risk.

D  Each tranche distributes income in the same way and to the same investors.

A  Buy and hold

B  Passive

C  Wholesaling

D  Fix and flip

A  Loan modification

B  Deficiency judgment

C  Reinstatement

D  Deed in lieu of foreclosure

A  Agency for Housing and Inclusive Communities

B  Department of the Interior

C  Department of Homeland Security

D  Department of Housing and Urban Development

A  Local small businesses

B  Employers

C  Credit unions

D  Individuals, such as family members

A  Low-income urban borrowers

B  Community-managed lenders

C  Non-profit businesses

D  Start-up business borrowers

A  $241,976.21

B  $241,715.88

C  $240,682.34

D  $241,672.12

A  The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral

B  The rate at which a bank can obtain a loan from another bank

C  The rate at which borrowers can refinance their mortgages

D  The rate at which a bank or lender may loan money to its most creditworthy borrowers

A  Yes, in certain high-income areas

B  Yes, in certain low-income areas

C  No

D  Yes, for Native Americans on trust lands

A  Yes, but Yancey may petition the VA to request removal of the pre-payment penalty

B  Yes

C  No

D  It depends on the terms of the loan, not the VA

A  Buyers

B  Leads

C  Commissions

D  Listings

A  A Notice of Sale must be recorded

B  The reinstatement period must expire

C  The IRS must be notified

D  The mortgage service must notify the borrower of their delinquency and foreclosure alternatives

A  Increase

B  Remain the same

C  Historically, property values have not followed a consistent pattern.

D  Decrease

A  Physical depreciation

B  Depreciation

C  Functional obsolescence

D  External obsolescence

A  Member banks must lend more money to the public.

B  Member banks must keep more assets on deposit at the reserve bank.

C  Member banks must increase interest rates on loans they make.

D  Member banks can keep fewer assets on deposit at the reserve bank.

A  They’re funded by private investors.

B  Banks focus lending offerings on local businesses and residents.

C  They’re regulated by federal the government.

D  They’re purchased by secondary mortgage markets.

A  VA

B  FHA, VA, or conventional

C  Conventional

D  FHA

A  Regardless of how it sounds, the lender still has to go to court.

B  It’s the same as the judicial process, just called by a different name in different states.

C  It’s an outdated process that’s no longer used.

D  It may be used if the deed of trust includes a power-of-sale clause.

A  Payments must have been received for at least three years, and must be expected to continue for at least one more year.

B  Payments must have been received for at least two years, and must be expected to continue for at least two more years.

C  Payments must have been received for at least one year, and must be expected to continue for at least three more years.

D  Payments must have been received for at least three years, and must be expected to continue for at least three more years.

A  For a 10% discount off list price

B  For a 50% discount off list price and a down payment of only $100

C  For $100

D  With an interest-only loan and no down payment

A  Acceleration

B  Reconveyance

C  Power of sale

D  Alienation

A  Cooperating brokerage

B  Undisclosed dual agency

C  Double dipping

D  Subagency

A  HELOC

B  RAM

C  PMM

D  Home equity

A  To be in direct competition with conventional lenders

B  Because the Constitution requires the federal government to support agriculture in specific ways, such as agricultural lending

C  To ensure that credit is available to agricultural producers, who often can’t meet conventional underwriting standards due to the nature of their work

D  To meet the provisions of the Farm Loanership Act

A  Title companies

B  Lenders

C  General contractors

D  Appraisers

A  Deed in lieu of foreclosure

B  Short sale

C  Redemption

D  Eviction

A  It shelters the borrower’s future properties from bankruptcy to protect the lender’s interests.

B  It allows the lender to place a lien against all current and future personal tax refunds of the borrower who defaulted.

C  It gives lenders the ability to recover losses due to a foreclosure sale from any current or future property the borrower owns.

D  It gives the lender the ability to place liens against any property it chooses, including cars and boats.

A  Petition for immediate repossession and eviction

B  Petition for legal ownership, opportunity to redeem property, notice of eviction if property is not redeemed

C  Petition to enter, repossession, notice of eviction

D  Notification of pending auction, public auction, notice of eviction

A  To increase their equity

B  To get a lower interest rate

C  To change mortgage brokers

D  To change the bank that owns their loan

A  The lender’s guaranteed maximum

B  $210,000, the sales price

C  $215,000, the CRV

D  $212,500 (an average of the two numbers)

A  U.S. Treasury

B  Bureau of Engraving and Printing

C  The Federal Reserve

D  U.S. Mint

A  Glen can recommend filing a complaint with HUD about the alleged discrimination.

B  Glen can ask his client if he’s eligible for FHA financing, which might change the seller’s mind.

C  Glen can recommend that he and his client plan a retaliatory response to the seller’s discriminatory action to make all buyers avoid the condo.

D  Glen can assure his client that he will find a less bigoted seller in the same complex.

A  Construction material

B  Year built

C  Location

D  Type of ownership

A  4%

B  6%

C  7%

D  5%

A  It’s never more than 10 years.

B  It’s always at least five years.

C  There really isn’t a draw period to speak of.

D  The draw period varies.

A  $2,500

B  $3,000

C  $4,000

D  $3,600

A  Multi-modal

B  Interim

C  Equity-based

D  Participation

A  Car loan

B  Savings account

C  Mortgage

D  Credit card balance

A  60

B  45

C  30

D  180

A  Page four

B  Page one

C  Page three

D  Page two

A  Future cash income

B  Guaranteed income

C  Loss of cash flow

D  Fewer jobs

A  By a deed of gift

B  Dedication by deed

C  Full covenant and warranty deed

D  Through a referee’s deed

A  Late charge

B  Prepayment penalty

C  Subordination

D  Lock-in

A  Term

B  Taxes

C  Tariff

D  Territory

A  Agent’s commission

B  Origination fee

C  Application fee

D  Underwriting fee

A  A type of foreclosure

B  A type of financing

C  An eviction procedure

D  A redemption

A  Total debt

B  Housing ratio

C  Payment debt

D  Loan-to-value ratio

A  Balloon payment

B  Lower initial interest rate

C  Convertible feature

D  Initial cap

A  To modify the timing of TILA and RESPA disclosures in a seller carry-back transaction

B  To require institutional lenders to allow a buyer to assume a loan from a seller

C  To prohibit usurious loan terms in a privately funded real estate transaction

D  To ensure that all parties are educated about loan terms and about who will be compensated for arranging credit

A  Residual income and debt-to-income

B  CRV and seller concessions

C  Housing ratio and total debt obligation

D  Debt and net operating income

A  Cash must be brought to closing

B  The loan costs, including total payments, finance charge, and TIP

C  The borrower and the seller each pay or receive at closing

D  Could have been saved by paying discount points

A  Explaining the steps the consumer needs to take to obtain a loan offer

B  Scheduling the loan closing

C  Presenting a revised loan offer to the consumer after they requested a lower rate

D  Informing a consumer of the loan rates that are publicly available

A  It raises interest rates incrementally over time.

B  It allows a junior mortgage to move into first lien position.

C  It removes a lien from a property when it’s been repaid.

D  It allows the lien(s) ahead of the junior mortgage to be refinanced without changing their priority in lien positions.

A  A refinancing strategy

B  An increase in property value

C  Paying off of a loan over time

D  A decrease in property value

A  Home Mortgage Discrimination Act

B  Community Reinvestment Act

C  Equal Credit Opportunity Act

D  Consumer Credit Protection Act

A  Foreclosure deed

B  Trustee’s deed

C  Deed of trust

D  Notice of sale

A  Two years in prison

B  Five years in prison

C  One year in prison

D  Ten years in prison

A  Adjustable rate

B  Graduated payment

C  Renegotiable rate

D  Fixed rate

A  Last will and testament

B  Contract for deed

C  Note with mortgage

D  Note with deed of trust

A  Co-pays

B  Covered events

C  Co-insurance

D  Coverage limits

A  Title II, Section 203(n)

B  Title II, Section 251

C  Title I

D  Title II, Section 234(c)

A  Extra money paid to cover any unexpected bank fees

B  Random charges

C  A fee to keep other borrowers from taking interest in your property and buying it out from under you

D  A fee paid to lenders for the use of their money

A  $265,957

B  $276,596

C  $250,000

D  $650,000

A  California Foreclosure Reduction Act

B  Real Estate License Law

C  Mortgage Foreclosure Consultant Law

D  SAFE Act

A  Business checking account

B  Retirement account

C  Income tax account

D  Emergency fund

A  The appraiser will weigh the value produced from each approach equally.

B  The appraiser may weigh only one approach more heavily than the others.

C  The appraiser may choose not to reconcile the three appraisal approaches.

D  The appraiser may weigh one or two approaches more heavily than the others, as appropriate for the property type.

A  No, she doesn’t meet the credit score requirement.

B  No, she doesn’t meet the housing ratio requirement.

C  No, she doesn’t meet the total debt obligation requirement.

D  Yes

A  75%

B  96%

C  72%

D  82%

A  Interest

B  Special benefits

C  Five times their investment in return

D  A certificate of appreciation

A  Lender

B  Settlement agent

C  Seller

D  Buyer

A  Mobile home loan

B  Conventional loan

C  Personal loan

D  Construction loan

A  Over supply

B  Expansion

C  Recession

D  Recovery

A  Bond

B  Bill

C  Note

D  Stock

A  Verify it.

B  Run a background check on it.

C  Ignore it.

D  Trust it.

A  Jasmine can’t occupy the residence.

B  The lender can put Jasmine’s loan in default.

C  Jasmine can’t pay off her loan early.

D  The lender can sue Jasmine.

A  Yes, she should have partial entitlement left.

B  No, since she has already used her entitlement, she can’t get another VA loan.

C  No, she can’t obtain another VA loan until she has paid off the first loan entirely.

D  Yes, but she must sell the first property and either pay off the loan or have the loan assumed by another veteran before using her VA loan entitlement again.

A  The lender may charge a fee to the new borrower.

B  The lender may require the new borrower to meet qualification standards.

C  The seller’s credit score may improve although he’s not making any mortgage payments.

D  A novation can be used to remove the original borrower’s liability.

A  Federal funds rate

B  Discount window

C  Open-market operations

D  Reserve requirements

A  The rate at which a bank or lender may loan money to its most creditworthy borrowers

B  The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral

C  The rate at which a bank can obtain a loan from another bank

D  The rate at which borrowers can refinance their mortgages

A  Cap rate

B  Value in situ

C  GRM

D  Replacement value

A  Wrap-around mortgage

B  Fixed rate loan

C  Bridge loan

D  Amortized loan

A  Deed in lieu of foreclosure

B  Non-judicial foreclosure

C  Deficiency judgment

D  Short sale

A  Take the client’s residential mortgage loan application.

B  Offer to negotiate the terms of the client’s loan application.

C  Service the client’s loan.

D  Offer to provide the client with a list of lenders they could consider working with to obtain the loan.

A  Once the loan-to-value ratio reaches 78% of the original value.

B  Once the borrower has 20% or more equity.

C  After the borrower has paid on the loan for five years.

D  Once the loan-to-value ratio reaches 80%.

A  Banks have access to additional funds through their district reserve bank.

B  Banks are restricted from making loans to consumers.

C  Interest rates plummet.

D  Banks don’t have access to additional funds.

A  FHA loans have more stringent requirements than conventional loans do.

B  FHA loans are available to all borrowers, regardless of credit history.

C  An FHA loan is usually more attractive to borrowers who have lower credit scores and down payments.

D  An FHA loan is best for borrowers who have large down payments.

A  Employment figures

B  Property lot size

C  Population size

D  Cost of living

A  Prohibits the borrower from suing the lender for mortgage fraud

B  Allows the lender to sue the borrower for damages if foreclosure occurs

C  Prohibits the lender from suing the borrower for damages if foreclosure occurs

D  Gives the borrower a recourse for exiting the loan when financial difficulties occur

A  Because California is a lien theory state.

B  Because California laws don’t allow judicial foreclosure.

C  Because California foreclosure laws allow a statutory right of redemption of up to one year with a judicial foreclosure.

D  Because California is a title theory state.

A  10

B  15

C  8

D  12

A  With a maturity term of 30 years

B  With a maturity term between two and 10 years

C  Without a specified maturity term

D  With a maturity term of one year or less

A  Partnership between mortgagors

B  Partnership between mortgagees

C  Limited liability partnership

D  Partnership between mortgagees and mortgagors

A  This might be used in the case of a furnished condominium.

B  It may be a first mortgage, a junior mortgage, or a junior wrap-around mortgage.

C  The funds are often used for home renovations or to fund a college education.

D  The lender is loaning on land, air, and a promise to build.

A  $30,000

B  $15,000

C  $60,000

D  $300,000

A  27.5 years

B  39 years

C  40 years

D  29 years

A  Yes; all loans secured by real estate are subject to RESPA requirements.

B  No; commercial and business loans are exempt from RESPA requirements.

C  No; RESPA only applies to loans obtained from private lenders.

D  Yes; because she obtains the loan from a federally insured financial institution, the loan is subject to RESPA requirements.

A  He should tell Nancy that he can’t afford to buy her presents anymore.

B  He should continue to buy presents because he values doing so, and not worry about how much he is spending.

C  He should break up with Nancy, as she costs too much.

D  He should continue to buy presents because he values doing so, but can buy less expensive items.