Practice Exam Sales License

A  American Taxpayer Relief Act of 2012

B  Mortgage Forgiveness Debt Relief Act of 2007

C  Homeowner Affordability and Stability Plan

D  Taxpayer Relief Act of 1997

A  12 departments

B  Six regional citizen-led initiatives

C  Three data collection systems

D  Four goals

A  Investigates financial crimes including tax evaders.

B  Produces currency and coins.

C  Supervises national banks and financial institutions.

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

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

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

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

A  Wholesaling

B  Fix and flip

C  Passive

D  Buy and hold

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 Housing and Urban Development

D  Department of Homeland Security

A  Individuals, such as family members

B  Local small businesses

C  Employers

D  Credit unions

A  Non-profit businesses

B  Community-managed lenders

C  Start-up business borrowers

D  Low-income urban borrowers

A  $241,672.12

B  $240,682.34

C  $241,976.21

D  $241,715.88

A  The rate at which borrowers can refinance their mortgages

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 a bank can obtain a loan from another bank

A  Yes, in certain high-income areas

B  Yes, for Native Americans on trust lands

C  Yes, in certain low-income areas

D  No

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

B  Yes

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

D  No

A  Buyers

B  Listings

C  Commissions

D  Leads

A  The reinstatement period must expire

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

C  A Notice of Sale must be recorded

D  The IRS must be notified

A  Remain the same

B  Increase

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

D  Decrease

A  External obsolescence

B  Physical depreciation

C  Functional obsolescence

D  Depreciation

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

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

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

D  Member banks must lend more money to the public.

A  Banks focus lending offerings on local businesses and residents.

B  They’re regulated by federal the government.

C  They’re purchased by secondary mortgage markets.

D  They’re funded by private investors.

A  FHA, VA, or conventional

B  Conventional

C  FHA

D  VA

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

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

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

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 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  With an interest-only loan and no down payment

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

C  For a 10% discount off list price

D  For $100

A  Acceleration

B  Reconveyance

C  Alienation

D  Power of sale

A  Cooperating brokerage

B  Subagency

C  Double dipping

D  Undisclosed dual agency

A  RAM

B  HELOC

C  PMM

D  Home equity

A  To meet the provisions of the Farm Loanership Act

B  To be in direct competition with conventional lenders

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  Appraisers

B  Title companies

C  Lenders

D  General contractors

A  Eviction

B  Short sale

C  Redemption

D  Deed in lieu of foreclosure

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

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

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 change the bank that owns their loan

B  To get a lower interest rate

C  To change mortgage brokers

D  To increase their equity

A  The lender’s guaranteed maximum

B  $210,000, the sales price

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

D  $215,000, the CRV

A  Bureau of Engraving and Printing

B  U.S. Treasury

C  The Federal Reserve

D  U.S. Mint

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

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  4%

B  7%

C  5%

D  6%

A  It’s always at least five years.

B  It’s never more than 10 years.

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

D  The draw period varies.

A  $3,600

B  $3,000

C  $2,500

D  $4,000

A  Multi-modal

B  Equity-based

C  Participation

D  Interim

A  Savings account

B  Credit card balance

C  Mortgage

D  Car loan

A  180

B  60

C  45

D  30

A  Page two

B  Page one

C  Page three

D  Page four

A  Fewer jobs

B  Guaranteed income

C  Future cash income

D  Loss of cash flow

A  Full covenant and warranty deed

B  By a deed of gift

C  Dedication by deed

D  Through a referee’s deed

A  Lock-in

B  Prepayment penalty

C  Subordination

D  Late charge

A  Territory

B  Taxes

C  Term

D  Tariff

A  Application fee

B  Agent’s commission

C  Underwriting fee

D  Origination fee

A  A redemption

B  A type of financing

C  A type of foreclosure

D  An eviction procedure

A  Loan-to-value ratio

B  Total debt

C  Payment debt

D  Housing ratio

A  Initial cap

B  Balloon payment

C  Lower initial interest rate

D  Convertible feature

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

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

A  Housing ratio and total debt obligation

B  Debt and net operating income

C  Residual income and debt-to-income

D  CRV and seller concessions

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

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

C  Cash must be brought to closing

D  Could have been saved by paying discount points

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

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

C  Scheduling the loan closing

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

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  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  Consumer Credit Protection Act

D  Equal Credit Opportunity Act

A  Deed of trust

B  Notice of sale

C  Trustee’s deed

D  Foreclosure deed

A  Ten years in prison

B  Two years in prison

C  One year in prison

D  Five years in prison

A  Renegotiable rate

B  Fixed rate

C  Adjustable rate

D  Graduated payment

A  Last will and testament

B  Contract for deed

C  Note with deed of trust

D  Note with mortgage

A  Co-insurance

B  Co-pays

C  Coverage limits

D  Covered events

A  Title II, Section 234(c)

B  Title II, Section 203(n)

C  Title II, Section 251

D  Title I

A  Extra money paid to cover any unexpected bank fees

B  Random charges

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

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

A  $276,596

B  $265,957

C  $250,000

D  $650,000

A  Real Estate License Law

B  SAFE Act

C  California Foreclosure Reduction Act

D  Mortgage Foreclosure Consultant Law

A  Income tax account

B  Emergency fund

C  Business checking account

D  Retirement account

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

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

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

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

D  Yes

A  75%

B  82%

C  72%

D  96%

A  Special benefits

B  Interest

C  Five times their investment in return

D  A certificate of appreciation

A  Settlement agent

B  Seller

C  Buyer

D  Lender

A  Mobile home loan

B  Personal loan

C  Conventional loan

D  Construction loan

A  Recovery

B  Over supply

C  Expansion

D  Recession

A  Bill

B  Bond

C  Note

D  Stock

A  Run a background check on it.

B  Ignore it.

C  Verify it.

D  Trust it.

A  Jasmine can’t pay off her loan early.

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

C  Jasmine can’t occupy the residence.

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

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  Reserve requirements

B  Open-market operations

C  Discount window

D  Federal funds rate

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 can obtain a loan from another bank

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

A  Replacement value

B  Value in situ

C  Cap rate

D  GRM

A  Bridge loan

B  Amortized loan

C  Wrap-around mortgage

D  Fixed rate loan

A  Deficiency judgment

B  Deed in lieu of foreclosure

C  Non-judicial foreclosure

D  Short sale

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 loan-to-value ratio reaches 80%.

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 borrower has 20% or more equity.

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

B  Banks are restricted from making loans to consumers.

C  Banks don’t have access to additional funds.

D  Interest rates plummet.

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

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

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

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

A  Employment figures

B  Property lot size

C  Population size

D  Cost of living

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

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  Prohibits the borrower from suing the lender for mortgage fraud

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  10

B  12

C  15

D  8

A  With a maturity term between two and 10 years

B  Without a specified maturity term

C  With a maturity term of 30 years

D  With a maturity term of one year or less

A  Partnership between mortgagees and mortgagors

B  Partnership between mortgagees

C  Limited liability partnership

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  $60,000

B  $30,000

C  $300,000

D  $15,000

A  39 years

B  29 years

C  27.5 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  Yes; because she obtains the loan from a federally insured financial institution, the loan is subject to RESPA requirements.

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

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

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