Practice Exam Sales License

A  Homeowner Affordability and Stability Plan

B  Mortgage Forgiveness Debt Relief Act of 2007

C  Taxpayer Relief Act of 1997

D  American Taxpayer Relief Act of 2012

A  Three data collection systems

B  Six regional citizen-led initiatives

C  Four goals

D  12 departments

A  Investigates financial crimes including tax evaders.

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

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, but is organized so that each tranche has a similar risk.

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 maturity.

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

A  Wholesaling

B  Passive

C  Fix and flip

D  Buy and hold

A  Deficiency judgment

B  Loan modification

C  Reinstatement

D  Deed in lieu of foreclosure

A  Department of Housing and Urban Development

B  Agency for Housing and Inclusive Communities

C  Department of Homeland Security

D  Department of the Interior

A  Local small businesses

B  Individuals, such as family members

C  Employers

D  Credit unions

A  Low-income urban borrowers

B  Start-up business borrowers

C  Community-managed lenders

D  Non-profit businesses

A  $241,672.12

B  $241,976.21

C  $240,682.34

D  $241,715.88

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  No

B  Yes, in certain high-income areas

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  No

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

D  Yes

A  Buyers

B  Commissions

C  Listings

D  Leads

A  The reinstatement period must expire

B  A Notice of Sale must be recorded

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

D  The IRS must be notified

A  Remain the same

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

C  Increase

D  Decrease

A  External obsolescence

B  Depreciation

C  Functional obsolescence

D  Physical depreciation

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  They’re purchased by secondary mortgage markets.

C  They’re regulated by federal the government.

D  Banks focus lending offerings on local businesses and residents.

A  Conventional

B  VA

C  FHA

D  FHA, VA, or 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 three years, 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 one more year.

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 one year, and must be expected to continue for at least three more years.

A  For $100

B  With an interest-only loan and no down payment

C  For a 10% discount off list price

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

A  Reconveyance

B  Alienation

C  Power of sale

D  Acceleration

A  Subagency

B  Double dipping

C  Cooperating brokerage

D  Undisclosed dual agency

A  RAM

B  HELOC

C  Home equity

D  PMM

A  To be in direct competition with conventional lenders

B  To meet the provisions of the Farm Loanership Act

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

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  Title companies

B  Appraisers

C  Lenders

D  General contractors

A  Short sale

B  Deed in lieu of foreclosure

C  Redemption

D  Eviction

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

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

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

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

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

B  Petition to enter, repossession, notice of eviction

C  Petition for immediate repossession and 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 get a lower interest rate

D  To change the bank that owns their loan

A  $215,000, the CRV

B  The lender’s guaranteed maximum

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

D  $210,000, the sales price

A  U.S. Mint

B  The Federal Reserve

C  U.S. Treasury

D  Bureau of Engraving and Printing

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

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

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 recommend filing a complaint with HUD about the alleged discrimination.

A  Type of ownership

B  Year built

C  Construction material

D  Location

A  7%

B  4%

C  5%

D  6%

A  The draw period varies.

B  It’s always at least five years.

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

D  It’s never more than 10 years.

A  $3,600

B  $2,500

C  $3,000

D  $4,000

A  Equity-based

B  Participation

C  Multi-modal

D  Interim

A  Mortgage

B  Car loan

C  Credit card balance

D  Savings account

A  30

B  60

C  180

D  45

A  Page four

B  Page two

C  Page one

D  Page three

A  Loss of cash flow

B  Future cash income

C  Fewer jobs

D  Guaranteed income

A  Dedication by deed

B  Through a referee’s deed

C  Full covenant and warranty deed

D  By a deed of gift

A  Late charge

B  Prepayment penalty

C  Subordination

D  Lock-in

A  Term

B  Tariff

C  Territory

D  Taxes

A  Origination fee

B  Underwriting fee

C  Application fee

D  Agent’s commission

A  A redemption

B  A type of financing

C  A type of foreclosure

D  An eviction procedure

A  Payment debt

B  Total debt

C  Loan-to-value ratio

D  Housing ratio

A  Lower initial interest rate

B  Convertible feature

C  Balloon payment

D  Initial cap

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

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

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

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

A  Residual income and debt-to-income

B  Housing ratio and total debt obligation

C  Debt and net operating income

D  CRV and seller concessions

A  Could have been saved by paying discount points

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

C  Cash must be brought to closing

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

A  Scheduling the loan closing

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

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

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 raises interest rates incrementally over time.

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  An increase in property value

B  A refinancing strategy

C  A decrease in property value

D  Paying off of a loan over time

A  Consumer Credit Protection Act

B  Equal Credit Opportunity Act

C  Community Reinvestment Act

D  Home Mortgage Discrimination Act

A  Deed of trust

B  Trustee’s deed

C  Foreclosure deed

D  Notice of sale

A  Ten years in prison

B  Two years in prison

C  One year in prison

D  Five years in prison

A  Fixed rate

B  Adjustable rate

C  Renegotiable rate

D  Graduated payment

A  Note with mortgage

B  Note with deed of trust

C  Contract for deed

D  Last will and testament

A  Co-insurance

B  Co-pays

C  Coverage limits

D  Covered events

A  Title II, Section 203(n)

B  Title I

C  Title II, Section 251

D  Title II, Section 234(c)

A  Extra money paid to cover any unexpected bank fees

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

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

D  Random charges

A  $276,596

B  $650,000

C  $265,957

D  $250,000

A  Mortgage Foreclosure Consultant Law

B  SAFE Act

C  Real Estate License Law

D  California Foreclosure Reduction Act

A  Emergency fund

B  Business checking account

C  Income tax account

D  Retirement account

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

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

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

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

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

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

C  Yes

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

A  96%

B  75%

C  72%

D  82%

A  Five times their investment in return

B  A certificate of appreciation

C  Interest

D  Special benefits

A  Lender

B  Buyer

C  Settlement agent

D  Seller

A  Conventional loan

B  Construction loan

C  Personal loan

D  Mobile home loan

A  Over supply

B  Recovery

C  Recession

D  Expansion

A  Stock

B  Bill

C  Note

D  Bond

A  Trust it.

B  Run a background check on it.

C  Verify it.

D  Ignore it.

A  The lender can sue Jasmine.

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

C  Jasmine can’t pay off her loan early.

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

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

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

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

A  Discount window

B  Federal funds rate

C  Reserve requirements

D  Open-market operations

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 borrowers can refinance their mortgages

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

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

A  Cap rate

B  GRM

C  Replacement value

D  Value in situ

A  Amortized loan

B  Bridge loan

C  Wrap-around mortgage

D  Fixed rate loan

A  Deed in lieu of foreclosure

B  Deficiency judgment

C  Non-judicial foreclosure

D  Short sale

A  Service the client’s loan.

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

C  Take the client’s residential mortgage loan application.

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

A  Once the borrower has 20% or more equity.

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

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

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 are available to all borrowers, regardless of credit history.

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 have more stringent requirements than conventional loans do.

A  Employment figures

B  Property lot size

C  Cost of living

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

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

A  Because California is a lien theory state.

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 laws don’t allow judicial foreclosure.

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  With a maturity term between two and 10 years

D  Without a specified maturity term

A  Partnership between mortgagees

B  Partnership between mortgagors

C  Partnership between mortgagees and mortgagors

D  Limited liability partnership

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

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

A  $60,000

B  $30,000

C  $300,000

D  $15,000

A  29 years

B  39 years

C  27.5 years

D  40 years

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

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

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

D  No; commercial and business loans are exempt from 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, but can buy less expensive items.

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

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