Practice Exam Sales License

A  Homeowner Affordability and Stability Plan

B  Taxpayer Relief Act of 1997

C  American Taxpayer Relief Act of 2012

D  Mortgage Forgiveness Debt Relief Act of 2007

A  Four goals

B  12 departments

C  Six regional citizen-led initiatives

D  Three data collection systems

A  Investigates financial crimes including tax evaders.

B  Supervises national banks and financial institutions.

C  Produces currency and coins.

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 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  Passive

B  Buy and hold

C  Wholesaling

D  Fix and flip

A  Deed in lieu of foreclosure

B  Reinstatement

C  Deficiency judgment

D  Loan modification

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  Individuals, such as family members

B  Local small businesses

C  Credit unions

D  Employers

A  Start-up business borrowers

B  Non-profit businesses

C  Low-income urban borrowers

D  Community-managed lenders

A  $241,976.21

B  $240,682.34

C  $241,672.12

D  $241,715.88

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, for Native Americans on trust lands

B  Yes, in certain low-income areas

C  No

D  Yes, in certain high-income areas

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  Commissions

C  Buyers

D  Listings

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

B  A Notice of Sale must be recorded

C  The reinstatement period must expire

D  The IRS must be notified

A  Increase

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

C  Decrease

D  Remain the same

A  External obsolescence

B  Functional obsolescence

C  Physical depreciation

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  They’re funded by private investors.

B  They’re regulated by federal the government.

C  Banks focus lending offerings on local businesses and residents.

D  They’re purchased by secondary mortgage markets.

A  FHA, VA, or conventional

B  VA

C  FHA

D  Conventional

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

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 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  With an interest-only loan and no down payment

B  For $100

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

D  For a 10% discount off list price

A  Alienation

B  Power of sale

C  Reconveyance

D  Acceleration

A  Cooperating brokerage

B  Subagency

C  Double dipping

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  Lenders

B  Appraisers

C  General contractors

D  Title companies

A  Short sale

B  Eviction

C  Redemption

D  Deed in lieu of foreclosure

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

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

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

B  Petition for immediate repossession and eviction

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

D  Petition to enter, repossession, notice of eviction

A  To change the bank that owns their loan

B  To change mortgage brokers

C  To increase their equity

D  To get a lower interest rate

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

B  $215,000, the CRV

C  $210,000, the sales price

D  The lender’s guaranteed maximum

A  The Federal Reserve

B  U.S. Mint

C  U.S. Treasury

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

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  Location

B  Type of ownership

C  Year built

D  Construction material

A  7%

B  4%

C  5%

D  6%

A  It’s always at least five years.

B  The draw period varies.

C  It’s never more than 10 years.

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

A  $3,600

B  $4,000

C  $3,000

D  $2,500

A  Multi-modal

B  Participation

C  Interim

D  Equity-based

A  Credit card balance

B  Mortgage

C  Savings account

D  Car loan

A  45

B  60

C  180

D  30

A  Page three

B  Page two

C  Page four

D  Page one

A  Fewer jobs

B  Loss of cash flow

C  Future cash income

D  Guaranteed income

A  By a deed of gift

B  Full covenant and warranty deed

C  Through a referee’s deed

D  Dedication by deed

A  Late charge

B  Lock-in

C  Prepayment penalty

D  Subordination

A  Term

B  Tariff

C  Territory

D  Taxes

A  Origination fee

B  Application fee

C  Underwriting fee

D  Agent’s commission

A  A redemption

B  An eviction procedure

C  A type of foreclosure

D  A type of financing

A  Housing ratio

B  Total debt

C  Loan-to-value ratio

D  Payment debt

A  Convertible feature

B  Balloon payment

C  Lower initial interest rate

D  Initial cap

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

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

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

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

A  Debt and net operating income

B  Residual income and debt-to-income

C  CRV and seller concessions

D  Housing ratio and total debt obligation

A  Could have been saved by paying discount points

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

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

D  Cash must be brought to closing

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 raises interest rates incrementally over time.

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

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

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

A  A decrease in property value

B  A refinancing strategy

C  An increase in property value

D  Paying off of a loan over time

A  Equal Credit Opportunity Act

B  Consumer Credit Protection Act

C  Community Reinvestment Act

D  Home Mortgage Discrimination Act

A  Trustee’s deed

B  Deed of trust

C  Foreclosure deed

D  Notice of sale

A  Ten years in prison

B  One year in prison

C  Two years in prison

D  Five years in prison

A  Adjustable rate

B  Graduated payment

C  Fixed rate

D  Renegotiable rate

A  Contract for deed

B  Last will and testament

C  Note with deed of trust

D  Note with mortgage

A  Covered events

B  Co-pays

C  Coverage limits

D  Co-insurance

A  Title II, Section 203(n)

B  Title I

C  Title II, Section 234(c)

D  Title II, Section 251

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  Random charges

D  Extra money paid to cover any unexpected bank fees

A  $276,596

B  $650,000

C  $265,957

D  $250,000

A  California Foreclosure Reduction Act

B  Mortgage Foreclosure Consultant Law

C  SAFE 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 only one approach more heavily than the others.

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

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

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

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

B  Yes

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

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

A  82%

B  96%

C  72%

D  75%

A  A certificate of appreciation

B  Five times their investment in return

C  Special benefits

D  Interest

A  Lender

B  Settlement agent

C  Buyer

D  Seller

A  Construction loan

B  Conventional loan

C  Personal loan

D  Mobile home loan

A  Recovery

B  Expansion

C  Recession

D  Over supply

A  Note

B  Bond

C  Stock

D  Bill

A  Trust it.

B  Verify it.

C  Ignore it.

D  Run a background check on it.

A  Jasmine can’t pay off her loan early.

B  Jasmine can’t occupy the residence.

C  The lender can sue Jasmine.

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

A  Yes, she should have partial entitlement left.

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

C  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.

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

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

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

A  Discount window

B  Reserve requirements

C  Open-market operations

D  Federal funds rate

A  The rate at which borrowers can refinance their mortgages

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 another bank

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

A  Cap rate

B  Replacement value

C  GRM

D  Value in situ

A  Fixed rate loan

B  Wrap-around mortgage

C  Bridge loan

D  Amortized loan

A  Deficiency judgment

B  Deed in lieu of foreclosure

C  Short sale

D  Non-judicial foreclosure

A  Service the client’s loan.

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

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

D  Take the client’s residential mortgage loan application.

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

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 borrower has 20% or more equity.

A  Banks don’t have access to additional funds.

B  Interest rates plummet.

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

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 are available to all borrowers, regardless of credit history.

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

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

A  Cost of living

B  Employment figures

C  Population size

D  Property lot size

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

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

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

D  Prohibits the borrower from suing the lender for mortgage fraud

A  Because California laws don’t allow judicial foreclosure.

B  Because California is a lien theory state.

C  Because California is a title theory state.

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

A  12

B  8

C  15

D  10

A  With a maturity term of one year or less

B  With a maturity term between two and 10 years

C  Without a specified maturity term

D  With a maturity term of 30 years

A  Partnership between mortgagors

B  Partnership between mortgagees

C  Partnership between mortgagees and mortgagors

D  Limited liability partnership

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

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

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  $60,000

B  $300,000

C  $15,000

D  $30,000

A  27.5 years

B  39 years

C  29 years

D  40 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  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 continue to buy presents because he values doing so, and not worry about how much he is spending.

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

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

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