Practice Exam Sales License

A  Homeowner Affordability and Stability Plan

B  Mortgage Forgiveness Debt Relief Act of 2007

C  American Taxpayer Relief Act of 2012

D  Taxpayer Relief Act of 1997

A  12 departments

B  Three data collection systems

C  Six regional citizen-led initiatives

D  Four goals

A  Supervises national banks and financial institutions.

B  Produces currency and coins.

C  Investigates financial crimes including tax evaders.

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

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 risk.

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

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

A  Buy and hold

B  Fix and flip

C  Wholesaling

D  Passive

A  Deficiency judgment

B  Deed in lieu of foreclosure

C  Loan modification

D  Reinstatement

A  Department of the Interior

B  Agency for Housing and Inclusive Communities

C  Department of Homeland Security

D  Department of Housing and Urban Development

A  Employers

B  Individuals, such as family members

C  Local small businesses

D  Credit unions

A  Community-managed lenders

B  Low-income urban borrowers

C  Non-profit businesses

D  Start-up business borrowers

A  $240,682.34

B  $241,715.88

C  $241,976.21

D  $241,672.12

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

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 or lender may loan money to its most creditworthy borrowers

D  The rate at which borrowers can refinance their mortgages

A  Yes, in certain high-income areas

B  No

C  Yes, in certain low-income areas

D  Yes, for Native Americans on trust lands

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

B  Yes

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

D  No

A  Listings

B  Commissions

C  Leads

D  Buyers

A  A Notice of Sale must be recorded

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

C  The reinstatement period must expire

D  The IRS must be notified

A  Decrease

B  Remain the same

C  Increase

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

A  Functional obsolescence

B  Depreciation

C  Physical depreciation

D  External obsolescence

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

B  Member banks must lend more money to the public.

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

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

A  They’re purchased by secondary mortgage markets.

B  They’re regulated by federal the government.

C  Banks focus lending offerings on local businesses and residents.

D  They’re funded by private investors.

A  FHA, VA, or conventional

B  VA

C  FHA

D  Conventional

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

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

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

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 two years, and must be expected to continue for at least two more years.

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

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

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

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

B  For a 10% discount off list price

C  For $100

D  With an interest-only loan and no down payment

A  Alienation

B  Reconveyance

C  Acceleration

D  Power of sale

A  Undisclosed dual agency

B  Subagency

C  Double dipping

D  Cooperating brokerage

A  Home equity

B  RAM

C  PMM

D  HELOC

A  To meet the provisions of the Farm Loanership Act

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

C  To be in direct competition with conventional lenders

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

A  Appraisers

B  Title companies

C  General contractors

D  Lenders

A  Redemption

B  Eviction

C  Deed in lieu of foreclosure

D  Short sale

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

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

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

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

A  Petition for immediate repossession and eviction

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

C  Petition to enter, repossession, notice of eviction

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

A  To increase their equity

B  To change mortgage brokers

C  To change the bank that owns their loan

D  To get a lower interest rate

A  The lender’s guaranteed maximum

B  $215,000, the CRV

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

D  $210,000, the sales price

A  The Federal Reserve

B  Bureau of Engraving and Printing

C  U.S. Mint

D  U.S. Treasury

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

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

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

D  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.

A  Type of ownership

B  Year built

C  Location

D  Construction material

A  4%

B  5%

C  6%

D  7%

A  It’s never more than 10 years.

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

C  It’s always at least five years.

D  The draw period varies.

A  $3,600

B  $4,000

C  $3,000

D  $2,500

A  Interim

B  Equity-based

C  Participation

D  Multi-modal

A  Credit card balance

B  Savings account

C  Car loan

D  Mortgage

A  45

B  60

C  180

D  30

A  Page two

B  Page three

C  Page four

D  Page one

A  Fewer jobs

B  Loss of cash flow

C  Future cash income

D  Guaranteed income

A  Through a referee’s deed

B  Full covenant and warranty deed

C  Dedication by deed

D  By a deed of gift

A  Late charge

B  Prepayment penalty

C  Subordination

D  Lock-in

A  Taxes

B  Term

C  Tariff

D  Territory

A  Origination fee

B  Agent’s commission

C  Application fee

D  Underwriting fee

A  A type of foreclosure

B  An eviction procedure

C  A redemption

D  A type of financing

A  Housing ratio

B  Payment debt

C  Loan-to-value ratio

D  Total debt

A  Balloon payment

B  Initial cap

C  Convertible feature

D  Lower initial interest rate

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

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

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

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

A  Housing ratio and total debt obligation

B  CRV and seller concessions

C  Debt and net operating income

D  Residual income and debt-to-income

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

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

C  Could have been saved by paying discount points

D  Cash must be brought to closing

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

B  Scheduling the loan closing

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

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

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

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

C  It raises interest rates incrementally over time.

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

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  Community Reinvestment Act

B  Home Mortgage Discrimination Act

C  Equal Credit Opportunity Act

D  Consumer Credit Protection Act

A  Foreclosure deed

B  Deed of trust

C  Notice of sale

D  Trustee’s deed

A  Ten years in prison

B  Two years in prison

C  Five years in prison

D  One year in prison

A  Graduated payment

B  Adjustable rate

C  Fixed rate

D  Renegotiable rate

A  Note with mortgage

B  Last will and testament

C  Contract for deed

D  Note with deed of trust

A  Co-insurance

B  Coverage limits

C  Covered events

D  Co-pays

A  Title II, Section 234(c)

B  Title II, Section 251

C  Title I

D  Title II, Section 203(n)

A  Random charges

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

C  Extra money paid to cover any unexpected bank fees

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

A  $650,000

B  $265,957

C  $276,596

D  $250,000

A  California Foreclosure Reduction Act

B  SAFE Act

C  Real Estate License Law

D  Mortgage Foreclosure Consultant Law

A  Retirement account

B  Business checking account

C  Emergency fund

D  Income tax account

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

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

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

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

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

B  Yes

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

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

A  96%

B  72%

C  82%

D  75%

A  Special benefits

B  Five times their investment in return

C  A certificate of appreciation

D  Interest

A  Settlement agent

B  Lender

C  Seller

D  Buyer

A  Mobile home loan

B  Construction loan

C  Personal loan

D  Conventional loan

A  Recovery

B  Recession

C  Over supply

D  Expansion

A  Bill

B  Stock

C  Note

D  Bond

A  Run a background check on it.

B  Verify it.

C  Ignore it.

D  Trust it.

A  Jasmine can’t occupy the residence.

B  Jasmine can’t pay off her loan early.

C  The lender can sue Jasmine.

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

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

B  Yes, she should have partial entitlement left.

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

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

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

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

A  Discount window

B  Federal funds rate

C  Reserve requirements

D  Open-market operations

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  Value in situ

B  GRM

C  Cap rate

D  Replacement value

A  Bridge loan

B  Wrap-around mortgage

C  Amortized loan

D  Fixed rate loan

A  Non-judicial foreclosure

B  Deed in lieu of foreclosure

C  Short sale

D  Deficiency judgment

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

B  Take the client’s residential mortgage loan application.

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

D  Service the client’s loan.

A  Once the borrower has 20% or more equity.

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

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

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

A  Banks are restricted from making loans to consumers.

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

C  Banks don’t have access to additional funds.

D  Interest rates plummet.

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

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

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

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

A  Property lot size

B  Employment figures

C  Cost of living

D  Population size

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

B  Prohibits the borrower from suing the lender for mortgage fraud

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

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

A  Because California is a lien theory state.

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

C  Because California laws don’t allow 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 of one year or less

C  Without a specified maturity term

D  With a maturity term between two and 10 years

A  Partnership between mortgagees

B  Limited liability partnership

C  Partnership between mortgagees and mortgagors

D  Partnership between mortgagors

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

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

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

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

A  $15,000

B  $300,000

C  $60,000

D  $30,000

A  29 years

B  27.5 years

C  39 years

D  40 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 break up with Nancy, as she costs too much.

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

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