25*26*practice
Which of the following is not a concern in regard to valuation issues related to appraisals? Geographic competency of appraisers Appraiser independence Appraiser availability Ineffectiveness of appraisal appeals processes
Appraiser availability
Which of the following is NOT one of the basic escrow procedures? Approve the escrow instructions Order the preliminary title search Request new loan instructions and documents Audit the file
Approve the escrow instructions
Which agency undertook the effort to harmonize Real Estate Settlement Procedures Act and Truth in Lending Act disclosures and regulations? Consumer Financial Protection Bureau HUD Congress Federal Housing Finance Agency
Consumer Financial Protection Bureau
What is the name of the regulation that is aimed at giving people more control over their data? The Data Accountability and Trust Act Consumer Privacy Bill of Rights Personal Data Notification & Protection Act HIPAA
Consumer Privacy Bill of Rights
What is the EPA considering in relation to lead paint? Allowing it to remain in commercial buildings but not residential homes Having lead paint removed from all public buildings to protect the occupants Extending the RRP rules to all commercial and public buildings Declaring that RRP activities in commercial and public buildings create a lead hazard that harms occupants
Extending the RRP rules to all commercial and public buildings
Who is the agency responsible for changing the GSE REO policy? FHFA FHA CFPB HUD
FHFA
What are the two Congressional tax-writing committees? House Ways and Means and Senate Finance House Ways and Means and Senate Tax Reform House Finance and Senate Ways and Means Congressional Ways and Means and House Finance
House Ways and Means and Senate Finance
What could bring about the danger that vital tax benefit provisions for commercial and investment real estate could be repealed or limited in order to "pay for" lowering the tax rates? Both sides of the tax reform debate will continue to disagree. Neither side of the debate will be willing to continue debating. If common ground on tax reform is found If the president vetoes any agreement the two sides may come to
If common ground on tax reform is found
What happened to the proposal released by banking regulators to help improve bank capital standards? Basel III went into effect on January 1, 2015. Implementation of the rule has been extended until March 2019. The rule failed and has been put on indefinite hold. Basel III underwent so many changed and modifications that it is now called Basel IV.
Implementation of the rule has been extended until March 2019.
What is the main roadblock to tax reform? Each side of the debate refusing to give up kickbacks they are receiving for stalling reform Presidential vetoes on all reform proposals Inability of both sides of the issue to agree on whether and how to reform the system Lack of interest and willingness to consider tax reform
Inability of both sides of the issue to agree on whether and how to reform the system
What happened to the HUD-1 settlement statement? It is being combined with the final TIL and called the closing disclosure. It is being completely eliminated. It is being revised and called HUD-2. Nothing is happening to it.
It is being combined with the final TIL and called the closing disclosure.
What happened to the TIC-related proposal that would allow commercial real estate professionals to provide real estate advisory services to clients and derive an advisory fee from the sponsor? It was passed in the House and is being considered in the Senate. It passed both the House and the Senate. It was passed by the Senate but failed in the House. It was put on hold.
It was put on hold.
What is one of the two rules that came from the Dodd-Frank Act that will impact the housing market? DATA Basel III QM TILA
QM
Which of the following is not a borrower's right in a real estate loan as identified by HUD? RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance RIGHT to know the reason if your loan was turned down RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan RIGHT to an inspection of the property
RIGHT to an inspection of the property
A financing instrument that creates a lien against a property is a loan. a default. a mortgage. a deed.
a mortgage.
The document that establishes legal evidence of the debt incurred is called a deed. a mortgage. a purchase agreement. a note.
a note.
A feature that homeowner do NOT typically want in a new home is a piano room. a walk-in pantry. a linen closet in the bathroom. garage storage.
a piano room.
In regard to same-sex marriage, some argue that it is not a real estate issue. a basis for private property rights issues. preventing couples from enjoying the same rights as those enjoyed in opposite-sex marriage. a topic for regulatory discussion.
a real estate issue.
A real estate cycle includes a return. a bust. a boom. a slump.
a slump.
The features homebuyers want most in a new home do not include energy efficiency. storage. a swimming pool. a laundry room.
a swimming pool.
Managed properties do not typically include industrial complexes. agricultural properties. office complexes. condominiums.
agricultural properties.
In relation to hosing costs based on supply and demand, a 5-6 months' supply creates a balanced market. During this period, homes depreciate at a rate faster than inflation. appreciate at a rate slower than inflation. appreciate at a rate faster than inflation. depreciate at a rate slower than inflation.
appreciate at a rate faster than inflation.
According to the trends published by the Homeownership Alliance, the national homeownership rate has surpassed 68 percent, but sizable differences in ownership rates are not seen based on familial status. across income levels. among racial groups. among different regions of the country.
based on familial status.
A typical real estate cycle follows a similar pattern that does not include upturn. downturn. boost. slump.
boost.
The most important part of the credit report is the credit score. number of creditors reported. borrower's payment history. total amount of credit reported.
borrower's payment history.
The markets that offer more opportunity for investors to acquire properties at bargain prices are called boom. expanding. slump. bust.
bust.
The Federal Reserve can effectively slow down or speed up growth within the country by raising taxes. by lowering taxes. by increasing or decreasing interest rates. by changing real estate laws.
by increasing or decreasing interest rates.
The characteristics of value do not include scarcity. condition. transferability. utility.
condition.
It is believed that the federal government should consider legislation and regulation aimed at improving commercial real estate markets but not by the creation of a US covered bond market. decreasing the cap on credit union member business lending. additional banking agency guidance related to term extensions. improving credit availability for small businesses.
decreasing the cap on credit union member business lending.
The increase in homeownership in the next several years will NOT be affected by immigrants buying homes. demand for homes in certain types of neighborhoods. growth in the number of baby boomers moving into their peak home-buying years. aging baby boomers choosing to remain in their homes.
demand for homes in certain types of neighborhoods.
At the end of 2012, ___________ showed a declining share of overall home sales. new construction condominiums distressed sales short sales
distressed sales
The current tax system is favored by lawmakers. favorable for real estate. detrimental to real estate investors. responsible for the real estate market crash.
favorable for real estate.
A popular use for cloud computing is personal database management. file storage. photography. virtual tours.
file storage.
In recent years, home prices have been gaining due to high demand and high supply. low demand and high supply. low demand and low supply. high demand and low supply.
high demand and low supply.
Some argue that the current tax system is riddled with loopholes that benefit mostly low income tax payers. high income tax payers. unemployed Americans. self-employed individuals.
high income tax payers.
A(n) ___________ is a form of revolving credit in which the home serves as collateral. home equity line revolving line installment credit second mortgage
home equity line
According to one prominent theory, social change would not result from government laws. influence of specific groups of people. population standstills. weather.
population standstills.
According to the US Census Bureau, how many Americans move each year? 40 million 5 million 2 million 120 million
population standstills.
A borrower can get a conventional loan with a lower than 20% down payment by having a co-signer. obtaining VA backing. purchasing private mortgage insurance. using a savings and loan as the lender.
purchasing private mortgage insurance.
To stimulate the economy, the central bank has engaged in keeping long-term interest rates near zero. selling mortgage debt to drive down interest rates. selling US treasury bonds. quantitative easing.
quantitative easing.
Although Fair Housing laws allow for exemptions in some areas, there are absolutely no exemptions, exceptions. Or excuses for sexual discrimination. racial discrimination. religious discrimination. age discrimination.
racial discrimination.
Policymakers have expressed a willingness to simplify tax law. narrow the base. raise the tax rate. compromise on all tax issues.
simplify tax law.
The most talked about and analyzed component of technology is texting. smartphones. social media. tablets.
social media.
A _______ is the percentage used to determine how much a property taxpayer will pay per one hundred dollars of net assessed value. tax rate tax levy tax unit tax base
tax rate
A rental space would not typically be unintentionally vacant because rent is too high. tenant qualification standards are too strict. ineffective advertising. inattentive manager.
tenant qualification standards are too strict.
Indiana has several tax exemptions which do not include the Age 62 and over exemption. the blind or disabled exemption. the veterans exemptions. the property improvements exemptions.
the Age 62 and over exemption.
Technology that allows access to information and data from any computer is called database management. the Cloud. hard drives. smartphones.
the Cloud.
When funds are received, the escrow account journal need not include the date the funds were received. the check number from the received funds. the amount of money received. the name of the person on whose behalf the funds are delivered.
the check number from the received funds.
The changes related to the HUD-1 settlement have nothing to do with it being replaced by a new loan estimate. changes to the closing process. the closing disclosure needing to be in the hands of the consumer 5 days before closing. combining it with the final TIL.
the closing disclosure needing to be in the hands of the consumer 5 days before closing.
The Data Accountability and Trust Act establishes a requirement to notify consumers within __________ from the discovery of a breach that exposes their personal information. 5 days 20 days 1 year 30 days
30 days
Which of the following is NOT a social media network? Apple Works Facebook Twitter Linkedin
Apple Works
If an investor has a property that generates an NOI of $75,000 with a mortgage expense of $33,000, what is the investor's cash flow before taxes? $42,000 $108,000 $33,000 $22,000
$42,000
Assume that a property has a potential rental income of $100,000. Also assume that the vacancy rate for the year resulted in a loss of $5,000. The operating expenses for the year were $23,000. What, then, would the NOI be for the year? $77,000 $128,000 $72,000 $95,000
$72,000
According to the Homeownership Alliance's publication, a robust housing demand will require production of about _____________ housing units per year. 2 billion 5 million 600 thousand 2 million
2 million
Current GSE real estate owned properties financing rules allow homeowners to become eligible for a GSE conventional loan how long after going through a foreclosure? Never 10 years 1 year 3 years
3 years
Which of the following is not true in regard to housing costs based on supply and demand? A 7-8 months' supply creates a buyers' market where the number of homes for sale exceeds the demand. Home depreciation follows. A 6-9 months supply creates a sellers' market where the demand exceeds the number of homes for sale. Home appreciation follows. A 1-4 months' supply creates a sellers' market and home appreciation is positive. A 5-6 months' supply creates a balanced market. During this period, homes appreciate at a rate a little greater than inflation.
A 6-9 months supply creates a sellers' market where the demand exceeds the number of homes for sale. Home appreciation follows.
_______________ would provide additional finance options to borrowers in commercial real estate markets where it might otherwise be limited. Low-interest refinancing A covered bond market Less regulatory scrutiny Basel III
A covered bond market
Which of the following statements is FALSE? Unfair regulatory scrutiny is preventing many commercial lenders from taking actions that could avoid defaults even for performing properties. A covered bond market would not provide additional finance options to borrowers in commercial real estate markets where it might otherwise be limited. An increased cap on MBL will allow eligible credit unions to stimulate the economy by providing more credit to small businesses. Improved small business credit availability will stimulate the economy and aid in job growth.
A covered bond market would not provide additional finance options to borrowers in commercial real estate markets where it might otherwise be limited.
What does Indiana add as a disability on account of which an individual may not be discriminated against in housing practices? Illegal drug use Post traumatic stress disorder Alcoholism Hearing impairment
Alcoholism
An antitrust law violation occurs when which of these parameters apply to a business activity? There is a monopoly, a contract, a conspiracy or a combination of such. The existence of a monopoly or conspiracy creates a restraint of trade. A restraint of trade unreasonably restricts competition and functions against public interest. All three must occur for the violation to apply.
All three must occur for the violation to apply.
Fannie Mae has made changes to improve and streamline its condo project approval process. Which of the following is included in those changes? An increase from 50% to 70% in pre-sale requirement for new projects A decrease in the number of days for which 15% of unit owners may be past due on common expense assessments An increase from 20% to 25% for the allowable commercial space allocation Waiver on the 10% investor ownership limit on projects between 5 and 20 units by allowing a single entity to own up to 3 units
An increase from 20% to 25% for the allowable commercial space allocation
The proposal released by banking regulators that would help improve bank capital standards is called Basel III. Base II. HVCRE. covered bond market.
Basel III.
If the managing broker chooses to pay the licensee a salary for the hours worked instead of a commission for one particular real estate transaction, is the licensee an independent contractor or an employee? Because it's only for one transaction, the licensee is an independent contractor. The licensee would be considered a temporary employee for the one transaction and would then go back to being an independent contractor. The licensee would remain an independent contractor. Because the licensee is paid for the hours worked, he/she would be an employee.
Because the licensee is paid for the hours worked, he/she would be an employee.
Which of the following is NOT a key area that shapes real estate trends? Financial Climate Government Actions Social Issues Climate Issues
Climate Issues
___________ is one of the most powerful tools ever invented for a computer. Social media Database programs Email Windows
Database programs
"The following formula is used for what? 3% of the first $25,000 of the acquisition cost, plus 5% of the balance of the acquisition cost up to $125,000, plus 10% of the remainder of the acquisition cost up to the regional loan ceiling, 100% of any acquisition cost over the regional loan ceiling " Determining the interest rate on an FHA loan Determining the down payment for a VA loan Determining the appropriate purchase price for a home being financed through the VA Determining the minimum down payment for an FHA loan
Determining the minimum down payment for an FHA loan
If assessed values of properties in one county are consistently ten percent below the average for other counties, what may happen? The properties with the higher assessed values will be given tax exemptions. Equalization factors may be applied to level out the unevenness of valuations. The properties with the lower assessed values will pay lower taxes. Leveling discounts and increases may be applied to both counties to equal out the taxes to be paid.
Equalization factors may be applied to level out the unevenness of valuations.
Instant messaging, or IM, is not being used extensively with programs that include Chat Rooms. Web Links. Facebook. Talk.
Facebook.
Which of the secondary market participants includes the following guideline: A borrower's monthly debt payments cannot exceed 28% of the monthly income. Freddie Mac Fannie Mae Ginnie Mae FHA
Fannie Mae
The FHFA change to the GSE REO policy regarding when and how former homeowners can repurchase their homes after a foreclosure is limited to Freddie Mac REO inventory. Ginnie Mae and Fannie Mae REO inventory. Ginnie Mae and Freddie Mac REO inventory. Fannie Mae and Freddie Mac REO inventory.
Fannie Mae and Freddie Mac REO inventory.
___________ developed the first mortgage-backed security, which was backed by a pool of FHA and VA mortgages and was called a pass-through security because the monthly principal and interest payments were collected from the borrowers and then "passed through" to the investors. HUD Ginnie Mae Freddie Mac Fannie Mae
Ginnie Mae
HUD prohibits discrimination based on sexual orientation and gender identity in GSE REO properties. in rental properties. in visitable housing. HUD-funded housing.
HUD-funded housing.
To insure that lenders are not "redlining" certain individuals or neighborhoods to exclude them from obtaining a mortgage, what regulation requires financial institutions to report statistical information? Equal Credit Opportunity Act Fair Credit Reporting Act Home Mortgage Disclosure Act TILA
Home Mortgage Disclosure Act
The_____________ measures the ratio of the median house price to the median annual household income. Price Multiplier Income Median Median Multiple Income Multiple
Median Multiple
What limits the availability of affordable mortgage financing for credit worthy consumers? Unavailability of Basel III The QM Rule Overly stringent lending standards GSEs
Overly stringent lending standards
Why was Hoyt's theory of real estate cycles flawed? He did not trace the data back far enough. Reoccurring cycles last longer than 18 years. He only studied the real estate market in Chicago. Perfect business cycles just don't exist.
Perfect business cycles just don't exist.
In what way is real estate NOT affected by marriage? How property is titled Purchase price Tax consequences Estates in the event of death
Purchase price
In many states, there have been legislative efforts to allow discrimination on the basis of sexual orientation and gender identity based on what? No states are attempting to allow this discrimination. Personal choice Religious beliefs US Supreme Court findings
Religious beliefs
The Baucus proposal for tax reform included proposals important to commercial and rental real estate. Which of the following was not one of those proposals? Increase the depreciable lives of real property used in business or held for investment to 43 years Raise the tax rate on gain from depreciation recapture from the current 25% to the ordinary income tax rate Repeal the tax rules that allow taxpayers to exchange like-kind real estate on a tax-deferred basis Repeal or limit vital tax benefit provisions for commercial and investment real estate to pay for lowering the tax rates
Repeal or limit vital tax benefit provisions for commercial and investment real estate to pay for lowering the tax rates
Which of the following is NOT one of the steps in the appraisal process? Report the problem and scope of work Analyze and interpret Estimate property value Reconcile estimated values
Report the problem and scope of work
The following is not one of the patterns in a typical real estate cycle. Upturn Return Downturn Slump
Return
In what type of mortgage can homeowners over age 62 possibly receive monthly payments based on their equity? Participation mortgage Piggyback mortgage Reverse annuity mortgage Home equity mortgage
Reverse annuity mortgage
By following certain rules, the licensee will greatly reduce the risk in dealing with fair housing issues. Which of the following is not one of those rules? Know the law. Sell the buyer. Keep good records. Be consistent in service.
Sell the buyer.
In this decade, which type of home will account for about 72% of total new housing units? Condominiums Multi-family structures Single-family homes Manufactured homes
Single-family homes
Following is not a recognized type of survey. Boundary survey Structure survey Mortgage survey Topographic survey
Structure survey
What program enables phone-like communications through the internet instead of through a traditional phone line? IM Chat Rooms Talk Streaming Video
Talk
___________ responds well to consumer demand for instant information and is a significant time saver. Facing Chatting Email Texting
Texting
Which of the following is NOT an issue related to the requirements for lead-based paint hazards? Residential property managers now must spend more on staff that must be EPA certified in lead-safe renovation procedures. The Agency may impose the same regulatory burden on commercial building owners and managers if data show their RRP activities pose a child lead hazard. Contractors must be certified and comply with the lead-safe renovation procedures, which drives up the cost of these renovation activities. The EPA is required to determine whether or not RRP activities in commercial and public buildings create a lead hazard that harms occupants.
The EPA is required to determine whether or not RRP activities in commercial and public buildings create a lead hazard that harms occupants.
What law is intended to protect consumers by strengthening underwriting standards, but is believed by some to raise costs and reduce access for consumers? The Qualified Mortgage Rule The Frank-Dodd Act The Data Accountability and Trust Act The Truth in Lending Act
The Qualified Mortgage Rule
Which of the following would most likely not be a result of the proposed use of eminent domain to allow local governments to take residential underwater mortgages from lenders and investors and then resell them to new investors at a reduced price? Fewer credit-worthy borrowers would be able to purchase a home. The demand for housing would be pushed below its current levels. The availability of mortgage credit would be increased. Down payments would rise to compensate for the added eminent domain risk.
The availability of mortgage credit would be increased.
____________ measures financial leverage. This ratio increases when the homeowner takes a second mortgage or home equity loan. The housing debt to loan ratio The mortgage debt to income ratio The housing debt to value ratio The housing debt to equity ratio
The housing debt to equity ratio
How are many local governments responding to the issue of visitable housing? They are suspending construction on any houses that include visitable features. They are recommending that opposition to visitable housing conduct a study to determine the benefits of the visitable features. They are looking to the US Supreme Court for guidance. They are requiring or encouraging new housing to be built with visitable features.
They are requiring or encouraging new housing to be built with visitable features.
The proposals circulating in localities across the country to allow local governments to use eminent domain to take residential underwater mortgages from lenders and investors, reduce the amount owed, and then resell it to new investors do NOT include which of the following issues? This would increase the availability of mortgage credit because investors want to purchase mortgages in participating communities. Fewer credit-worthy borrowers would be able to purchase a home. Many more homeowners could be pushed underwater by further declines in home values. Mortgage rates would rise to compensate for the added eminent domain risk.
This would increase the availability of mortgage credit because investors want to purchase mortgages in participating communities.
Which type of homebuyers will always be catered to? Those without monetary means but are part of a protected class Those with the monetary means to purchase a specific type of home in a certain type of neighborhood Those with monetary means who want to purchase a home outside of a neighborhood that is culturally diverse Those who have cash to pay for a new home
Those with the monetary means to purchase a specific type of home in a certain type of neighborhood
A number of forces operating in the marketplace feed boom times. Which of the following is NOT one of those forces? Under building of new homes Expanded monetary policies Reduced regulatory guidelines Highly mobile work force
Under building of new homes
Which of the following is NOT a vertical search engine? Zillow Windows Trulia Realtor.com
Windows
The three conditions of the safe harbor test to establish if a person is indeed an independent contractor includes how long the person has been licensed as a real estate agent. that the person's gross income must be based on hours worked. whether the managing broker has filed an IRS Form 1099. if there is a written agreement between the managing broker and the independent contractor outlining the work to be done and that the contractor will not be treated as an employee for income tax purposes.
if there is a written agreement between the managing broker and the independent contractor outlining the work to be done and that the contractor will not be treated as an employee for income tax purposes.
When data is not on the computer's hard drive but is accessible through a hardwire or wireless internet connection, it is in a database program. being instant messaged. on a tablet. in the cloud.
in the cloud.
The creation of a covered bond market in the US will decrease credit availability. increase liquidity. decrease liquidity. create refinancing challenges in the commercial real estate sector.
increase liquidity.
Bust periods in the marketplace are not typically associated with tight money. excessive number of homes. anemic performance in other areas of the economy. increased regulatory guidelines.
increased regulatory guidelines.
The financial components of a mortgage loan do not include term. points. insurance. interest.
insurance.
A golf course home is something buyers often require. is one of the top features buyers are looking for. is something buyers do not want. is something that high income buyers are seeking.
is something buyers do not want.
Professionals who post regularly should make sure they are posting information that is not/does not necessarily brief. have a purpose. make the customer laugh. informative to the client.
make the customer laugh.
It was projected that homeownership rates would rise to at least 10 million additional homeowners by 2013 with roughly ______ of that number being minorities. one third one half one fourth one sixth
one half
Empty nesters are now looking for condominiums near beaches. one-level homes close to shopping. high rise apartments near health care facilities. any type of home in warmer climates.
one-level homes close to shopping.
The property tax assessment and billing cycle begins with reviewing the previous year's tax assessment. an appraisal of the property by a licensed appraiser. the county assessor developing each property's assessed value. the tax office comparing the previous year's assessment to the current year's assessment.
the county assessor developing each property's assessed value.
The American Taxpayer Relief Act of 2013 did not make the lower tax rates enacted in 2001 and 2003 permanent for the highest-income taxpayers. low income taxpayers. property owners. property taxes.
the highest-income taxpayers.
The transfer of real estate between parties dates back to the Stone Age. 5000 years. 3000 years. to when humans first inhabited the earth.
to when humans first inhabited the earth.
The CAN-SPAM Act does not apply to sending unauthorized, unwanted commercial email messages to wireless devices. messages sent to cell phones if the message uses a URL. messages sent without express prior authorization. transactional messages between the broker and a client.
transactional messages between the broker and a client.
The evaluation process used to determine the borrower's ability to repay a loan and to estimate the value of the property being used as collateral is called title search. research. analysis. underwriting.
underwriting.
Housing that is built to allow guests with mobility impairments to visit without architectural barriers impeding their ability to move in and out of the home is called ADA housing. hospitable housing. mobility housing. visitable housing.
visitable housing.