Practice Exam Sales License

A  American Taxpayer Relief Act of 2012

B  Taxpayer Relief Act of 1997

C  Homeowner Affordability and Stability Plan

D  Mortgage Forgiveness Debt Relief Act of 2007

A  Six regional citizen-led initiatives

B  12 departments

C  Four goals

D  Three data collection systems

A  Produces currency and coins.

B  Supervises national banks and financial institutions.

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

D  Investigates financial crimes including tax evaders.

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

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, and has differing balances, maturities, and risks.

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

A  Fix and flip

B  Passive

C  Buy and hold

D  Wholesaling

A  Loan modification

B  Reinstatement

C  Deficiency judgment

D  Deed in lieu of foreclosure

A  Department of Housing and Urban Development

B  Department of Homeland Security

C  Agency for Housing and Inclusive Communities

D  Department of the Interior

A  Employers

B  Individuals, such as family members

C  Local small businesses

D  Credit unions

A  Low-income urban borrowers

B  Community-managed lenders

C  Start-up business borrowers

D  Non-profit businesses

A  $241,715.88

B  $240,682.34

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 borrowers can refinance their mortgages

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 a bank or lender may loan money to its most creditworthy borrowers

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

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

C  No

D  Yes

A  Leads

B  Listings

C  Buyers

D  Commissions

A  The IRS must be notified

B  A Notice of Sale must be recorded

C  The reinstatement period must expire

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

A  Increase

B  Decrease

C  Remain the same

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

A  External obsolescence

B  Functional obsolescence

C  Depreciation

D  Physical 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 increase interest rates on loans they make.

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

A  They’re funded by private investors.

B  They’re purchased by secondary mortgage markets.

C  Banks focus lending offerings on local businesses and residents.

D  They’re regulated by federal the government.

A  VA

B  FHA, VA, or conventional

C  FHA

D  Conventional

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

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

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

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

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 one year, 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 three more years.

A  For a 10% discount off list price

B  For $100

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

D  With an interest-only loan and no down payment

A  Power of sale

B  Alienation

C  Acceleration

D  Reconveyance

A  Undisclosed dual agency

B  Double dipping

C  Cooperating brokerage

D  Subagency

A  HELOC

B  PMM

C  Home equity

D  RAM

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

B  To meet the provisions of the Farm Loanership Act

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  General contractors

B  Lenders

C  Title companies

D  Appraisers

A  Short sale

B  Deed in lieu of foreclosure

C  Eviction

D  Redemption

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

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

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

B  Petition to enter, repossession, notice of eviction

C  Petition for immediate repossession and eviction

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

A  To get a lower interest rate

B  To change mortgage brokers

C  To increase their equity

D  To change the bank that owns their loan

A  $210,000, the sales price

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

C  $215,000, the CRV

D  The lender’s guaranteed maximum

A  U.S. Mint

B  Bureau of Engraving and Printing

C  The Federal Reserve

D  U.S. Treasury

A  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.

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

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

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

A  Location

B  Construction material

C  Year built

D  Type of ownership

A  6%

B  5%

C  7%

D  4%

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

B  It’s always at least five years.

C  It’s never more than 10 years.

D  The draw period varies.

A  $4,000

B  $2,500

C  $3,600

D  $3,000

A  Participation

B  Multi-modal

C  Interim

D  Equity-based

A  Mortgage

B  Savings account

C  Car loan

D  Credit card balance

A  60

B  45

C  30

D  180

A  Page two

B  Page one

C  Page three

D  Page four

A  Loss of cash flow

B  Guaranteed income

C  Future cash income

D  Fewer jobs

A  Dedication by deed

B  Full covenant and warranty deed

C  By a deed of gift

D  Through a referee’s deed

A  Subordination

B  Late charge

C  Prepayment penalty

D  Lock-in

A  Territory

B  Term

C  Tariff

D  Taxes

A  Agent’s commission

B  Origination fee

C  Underwriting fee

D  Application fee

A  A type of financing

B  An eviction procedure

C  A redemption

D  A type of foreclosure

A  Housing ratio

B  Payment debt

C  Loan-to-value ratio

D  Total debt

A  Convertible feature

B  Lower initial interest rate

C  Initial cap

D  Balloon payment

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

B  To prohibit usurious loan terms in a privately funded real estate 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  CRV and seller concessions

B  Housing ratio and total debt obligation

C  Residual income and debt-to-income

D  Debt and net operating income

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

B  Cash must be brought to closing

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

D  Could have been saved by paying discount points

A  Scheduling the loan closing

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

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

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

A  It raises interest rates incrementally over time.

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

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

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

A  Paying off of a loan over time

B  An increase in property value

C  A decrease in property value

D  A refinancing strategy

A  Consumer Credit Protection Act

B  Equal Credit Opportunity Act

C  Community Reinvestment Act

D  Home Mortgage Discrimination Act

A  Foreclosure deed

B  Trustee’s deed

C  Notice of sale

D  Deed of trust

A  One year in prison

B  Five years in prison

C  Two years in prison

D  Ten years in prison

A  Renegotiable rate

B  Adjustable rate

C  Fixed rate

D  Graduated payment

A  Contract for deed

B  Note with mortgage

C  Last will and testament

D  Note with deed of trust

A  Coverage limits

B  Co-insurance

C  Co-pays

D  Covered events

A  Title II, Section 251

B  Title I

C  Title II, Section 234(c)

D  Title II, Section 203(n)

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

B  Random charges

C  Extra money paid to cover any unexpected bank fees

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

A  $250,000

B  $276,596

C  $265,957

D  $650,000

A  SAFE Act

B  Mortgage Foreclosure Consultant Law

C  California Foreclosure Reduction Act

D  Real Estate License Law

A  Income tax account

B  Retirement account

C  Business checking account

D  Emergency fund

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

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

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

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 credit score requirement.

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

D  Yes

A  72%

B  96%

C  82%

D  75%

A  Five times their investment in return

B  Special benefits

C  Interest

D  A certificate of appreciation

A  Seller

B  Buyer

C  Settlement agent

D  Lender

A  Mobile home loan

B  Personal loan

C  Conventional loan

D  Construction loan

A  Recovery

B  Expansion

C  Recession

D  Over supply

A  Bond

B  Note

C  Bill

D  Stock

A  Trust it.

B  Ignore it.

C  Run a background check on it.

D  Verify it.

A  Jasmine can’t pay off her loan early.

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

C  The lender can sue Jasmine.

D  Jasmine can’t occupy the residence.

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, 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, she should have partial entitlement left.

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

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

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

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

A  Reserve requirements

B  Federal funds rate

C  Open-market operations

D  Discount window

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 borrowers can refinance their mortgages

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

A  Cap rate

B  Replacement value

C  Value in situ

D  GRM

A  Fixed rate loan

B  Bridge 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  Service the client’s loan.

B  Take the client’s residential mortgage loan application.

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

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

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  Interest rates plummet.

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

C  Banks don’t have access to additional funds.

D  Banks are restricted from making loans to consumers.

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

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

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

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

A  Population size

B  Employment figures

C  Cost of living

D  Property lot size

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

B  Because California is a lien theory state.

C  Because California is a title theory state.

D  Because California laws don’t allow judicial foreclosure.

A  8

B  15

C  10

D  12

A  With a maturity term between two and 10 years

B  With a maturity term of one year or less

C  Without a specified maturity term

D  With a maturity term of 30 years

A  Partnership between mortgagees

B  Partnership between mortgagors

C  Limited liability partnership

D  Partnership between mortgagees and 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  It may be a first mortgage, a junior mortgage, or a junior wrap-around mortgage.

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

A  $300,000

B  $60,000

C  $15,000

D  $30,000

A  40 years

B  39 years

C  29 years

D  27.5 years

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

B  Yes; all loans secured by real estate are subject to 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 break up with Nancy, as she costs too much.

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

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.