Finance practice exam 9

The economy headed into a recession

In response to the increase in foreclosures and losses on their balance sheets, not to mention a reduced market for subprime loans, many lenders slowed their lending activities. What was the impact of this on the overall economy?

$315,789 In order to calculate this, start with 100% minus a 5% commission, which is 95% or .95. Take $300,000 and divide this amount by .95. Question 7 of 150

A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?

Distributes grant funding to help meet community needs as determined by state and local governments

How does the Community Development Block Grant program assist in supporting HUD's mission?

Premiums

If Jeff is healthy and always has excellent check-ups, which of the following would likely be the most important factor in his insurance selection?

It begins when the Notice of Default is filed and ends five days BEFORE the trustee's sale occurs.

In the non-judicial foreclosure process, when does a borrower's reinstatement period begin and end?

Participation

Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?

45 days

John wants to do a 1031 tax exchange. He just sold his property. How many days does he have to identify a new property?

Go up or down, but can't change more than a maximum number of points allowed by the FHA over the life of the loan

The interest rate on an FHA Section 251 adjustable rate mortgage will ______.

Bankruptcy

This is a legal process borrowers may go through to either discharge or restructure all of their debt.

To hold legal title to the property on behalf of the beneficiary until the loan is repaid

What is the trustee's role when a deed of trust is used to secure property for a loan?

Record purchases and file receipts

When using a financial system, what activities should you complete on a weekly basis?

Local credit union

Which of the following entities commonly acts in the primary market?

Receipts for parking fees when visiting a client's condo Of the choices provided, only business receipts or proof of payment for business expenses need to be retained.

Which of the following should be retained for tax purposes?

Purchase money mortgage

Which type of mortgage is seller financing in which the buyer gives a mortgage to the seller toward the purchase price, and which buyers use as down payment financing?