Practice Exam Sales License

A  Taxpayer Relief Act of 1997

B  Mortgage Forgiveness Debt Relief Act of 2007

C  American Taxpayer Relief Act of 2012

D  Homeowner Affordability and Stability Plan

A  Four goals

B  Six regional citizen-led initiatives

C  12 departments

D  Three data collection systems

A  Supervises national banks and financial institutions.

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

C  Investigates financial crimes including tax evaders.

D  Produces currency and coins.

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

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

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

A  Passive

B  Wholesaling

C  Fix and flip

D  Buy and hold

A  Loan modification

B  Deficiency judgment

C  Reinstatement

D  Deed in lieu of foreclosure

A  Department of the Interior

B  Department of Housing and Urban Development

C  Department of Homeland Security

D  Agency for Housing and Inclusive Communities

A  Credit unions

B  Employers

C  Local small businesses

D  Individuals, such as family members

A  Low-income urban borrowers

B  Community-managed lenders

C  Start-up business borrowers

D  Non-profit businesses

A  $241,715.88

B  $241,976.21

C  $240,682.34

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 or lender may loan money to its most creditworthy borrowers

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

D  The rate at which borrowers can refinance their mortgages

A  Yes, for Native Americans on trust lands

B  Yes, in certain high-income areas

C  Yes, in certain low-income areas

D  No

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

B  No

C  Yes

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

A  Leads

B  Buyers

C  Listings

D  Commissions

A  A Notice of Sale must be recorded

B  The reinstatement period must expire

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

D  The IRS must be notified

A  Decrease

B  Remain the same

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

D  Increase

A  Physical depreciation

B  External obsolescence

C  Functional obsolescence

D  Depreciation

A  Member banks must lend more money to the public.

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

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

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

A  They’re regulated by federal the government.

B  Banks focus lending offerings on local businesses and residents.

C  They’re funded by private investors.

D  They’re purchased by secondary mortgage markets.

A  FHA, VA, or conventional

B  Conventional

C  FHA

D  VA

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

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

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

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

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

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

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

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

A  For a 10% discount off list price

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

C  With an interest-only loan and no down payment

D  For $100

A  Power of sale

B  Reconveyance

C  Acceleration

D  Alienation

A  Subagency

B  Double dipping

C  Cooperating brokerage

D  Undisclosed dual agency

A  RAM

B  PMM

C  Home equity

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 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 be in direct competition with conventional lenders

A  Title companies

B  Appraisers

C  General contractors

D  Lenders

A  Eviction

B  Deed in lieu of foreclosure

C  Redemption

D  Short sale

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

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

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

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

A  Petition to enter, repossession, notice of eviction

B  Petition for immediate repossession and eviction

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

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

B  $210,000, the sales price

C  $215,000, the CRV

D  The lender’s guaranteed maximum

A  U.S. Treasury

B  The Federal Reserve

C  U.S. Mint

D  Bureau of Engraving and Printing

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

B  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.

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

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

A  Construction material

B  Type of ownership

C  Location

D  Year built

A  5%

B  6%

C  7%

D  4%

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

B  The draw period varies.

C  It’s always at least five years.

D  It’s never more than 10 years.

A  $3,600

B  $4,000

C  $2,500

D  $3,000

A  Equity-based

B  Multi-modal

C  Interim

D  Participation

A  Mortgage

B  Car loan

C  Credit card balance

D  Savings account

A  30

B  45

C  60

D  180

A  Page one

B  Page three

C  Page four

D  Page two

A  Guaranteed income

B  Fewer jobs

C  Future cash income

D  Loss of cash flow

A  Dedication by deed

B  Full covenant and warranty deed

C  Through a referee’s deed

D  By a deed of gift

A  Prepayment penalty

B  Lock-in

C  Late charge

D  Subordination

A  Tariff

B  Territory

C  Taxes

D  Term

A  Origination fee

B  Agent’s commission

C  Underwriting fee

D  Application fee

A  A type of foreclosure

B  An eviction procedure

C  A type of financing

D  A redemption

A  Total debt

B  Payment debt

C  Loan-to-value ratio

D  Housing ratio

A  Convertible feature

B  Balloon payment

C  Lower initial interest rate

D  Initial cap

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

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

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

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

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  Could have been saved by paying discount points

B  Cash must be brought to closing

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

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

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

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

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

D  Scheduling the loan closing

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

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

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

D  It raises interest rates incrementally over time.

A  A refinancing strategy

B  Paying off of a loan over time

C  A decrease in property value

D  An increase in property value

A  Equal Credit Opportunity Act

B  Home Mortgage Discrimination Act

C  Community Reinvestment Act

D  Consumer Credit Protection Act

A  Trustee’s deed

B  Deed of trust

C  Notice of sale

D  Foreclosure deed

A  One year in prison

B  Two years in prison

C  Ten years in prison

D  Five years in prison

A  Adjustable rate

B  Fixed rate

C  Renegotiable rate

D  Graduated payment

A  Last will and testament

B  Note with deed of trust

C  Note with mortgage

D  Contract for deed

A  Co-pays

B  Co-insurance

C  Covered events

D  Coverage limits

A  Title I

B  Title II, Section 251

C  Title II, Section 234(c)

D  Title II, Section 203(n)

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

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

C  Extra money paid to cover any unexpected bank fees

D  Random charges

A  $276,596

B  $650,000

C  $250,000

D  $265,957

A  Mortgage Foreclosure Consultant Law

B  SAFE Act

C  Real Estate License Law

D  California Foreclosure Reduction Act

A  Business checking account

B  Income tax account

C  Emergency fund

D  Retirement account

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

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

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

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

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

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

C  Yes

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

A  75%

B  96%

C  72%

D  82%

A  A certificate of appreciation

B  Five times their investment in return

C  Special benefits

D  Interest

A  Seller

B  Lender

C  Settlement agent

D  Buyer

A  Mobile home loan

B  Conventional loan

C  Construction loan

D  Personal loan

A  Recession

B  Recovery

C  Over supply

D  Expansion

A  Stock

B  Note

C  Bond

D  Bill

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, 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.

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

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

D  Yes, she should have partial entitlement left.

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

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

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  Open-market operations

B  Federal funds rate

C  Discount window

D  Reserve requirements

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 or lender may loan money to its most creditworthy borrowers

C  The rate at which borrowers can refinance their mortgages

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

A  Value in situ

B  Replacement value

C  Cap rate

D  GRM

A  Bridge loan

B  Fixed rate loan

C  Amortized loan

D  Wrap-around mortgage

A  Short sale

B  Deed in lieu of foreclosure

C  Non-judicial foreclosure

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

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

A  Interest rates plummet.

B  Banks don’t have access to additional funds.

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

D  Banks are restricted from making loans to consumers.

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

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

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

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

A  Population size

B  Property lot size

C  Cost of living

D  Employment figures

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

B  Prohibits the borrower from suing the lender for mortgage fraud

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

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

A  Because California laws don’t allow judicial foreclosure.

B  Because California is a title theory state.

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 lien theory state.

A  15

B  8

C  10

D  12

A  With a maturity term of one year or less

B  With a maturity term of 30 years

C  Without a specified maturity term

D  With a maturity term between two and 10 years

A  Limited liability partnership

B  Partnership between mortgagees and mortgagors

C  Partnership between mortgagors

D  Partnership between mortgagees

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

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

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

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

A  $60,000

B  $15,000

C  $30,000

D  $300,000

A  29 years

B  27.5 years

C  39 years

D  40 years

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

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

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

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

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

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

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

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