Financial Test

The _______ section contains the seller's existing mortgage loan payoff amount that must be paid to complete the transaction. "Due from Borrower at Closing" "Due from Seller at Closing" "Due to Seller at Closing" "Paid Already by or on Behalf of Borrower at Closing"

"Due from Seller at Closing"

Borrowers should be wary of lenders who offer mortgages at more than ______ over current market interest rates. 2% 3% 5% 6%

5%

With a VA loan, the borrower must receive a certificate of eligibility. What must the property receive? A certificate of occupancy A certificate of reasonable value A certificate of resale value A low appraisal

A certificate of reasonable value

A homeowner has been paying her mortgage for several years and has built up equity. She decides to take out a home equity line of credit because she needs some cash. This credit will create ______. A junior lien on the property An addition to the principal on her mortgage A subordination of her mortgage Negative amortization on her mortgage

A junior lien on the property

antagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project? A commercial bank A credit union A life insurance company A mutual savings bank

A life insurance company

Captain Kirk is a veteran who sells his home to Leonard. Leonard is also a veteran, and they agree to let Leonard assume Captain Kirk's VA loan for the property. They agree to a novation, which is ______. An addition to the property A new contract with the lender using a substitution of entitlement A reduction in sales price to match the CRV A release of Captain Kirk's liability

A new contract with the lender using a substitution of entitlement

What type of property is Aileen appraising if she's using the income approach? An industrial warehouse A short-term lake rental A townhome A two-story garden house

A short-term lake rental

What type of property is Valerie appraising if she's using the sales comparison approach? A rental duplex A rental property A single-family residence built six years ago A theatre

A single-family residence built six years ago

The ______ was enacted in 1946 in response to the creation of several new federal agencies. It established a process for how the agencies could propose and establish regulations. Administrative Procedure Act Equal Credit Opportunity Act Federal Agency Control Act Federal Agency Roles and Responsibilities Act

Administrative Procedure Act

Who is responsible for paying the loan-related closing costs in a financed real estate transaction? Buyer Lender Seller Title company

Buyer

How does the consumer provide economic support to a community in the living phase of the real estate cycle? By paying income taxes By purchasing and consuming local goods and services By purchasing construction supplies By purchasing moving services

By purchasing and consuming local goods and services

What is one way that the FHA has helped to stabilize and improve the mortgage market? By educating the public about the benefits and responsibilities of having a mortgage By protecting borrowers from predatory lending practices through federal legislation By requiring appraisers to be state licensed or certified to evaluate property for FHA-insured loans By setting standards for interest rates on FHA-insured mortgage loans

By requiring appraisers to be state licensed or certified to evaluate property for FHA-insured loans

Georgette and Elise are buying a home together, and have taken out a loan with a private loan company. They'll pay a bit more interest, and larger fees, but they feel it's worth it to have the home they've always dreamed of. What else might the private loan company require? An equity interest Collateral Interest-only payments Sponsorship

Collateral

What's the primary source of funds for commercial banks? Bank fees Demand deposits Government funding Proceeds from property sales

Demand deposits

What's the term for an extended period of time during which banks experience more withdrawals than deposits? Bankruptcy Collateral Disintermediation Hypothecation

Disintermediation

The ______ was enacted in 2010 to create stricter regulation of the financial services industry to reduce costs for consumers from (for instance), undisclosed kickbacks. Dodd-Frank Wall Street Reform and Consumer Protection Act Equal Credit Opportunity Act Real Estate Settlement Procedures Act Truth in Lending Act

Dodd-Frank Wall Street Reform and Consumer Protection Act

Jonathan has come up with a plan. He's going to offer to buy property belonging to his neighbor, who's struggling financially, collect rent from his neighbor, and not make the mortgage payments. He'll rake in the rent until the bank forecloses. Which type of mortgage fraud scheme is this an example of? Equity skimming False identity Property flipping Straw buyers

Equity skimming

Which of these HUD programs is primarily responsible for providing mortgage insurance on home loans? Community Development Block Grant FHA Ginnie Mae Office of Fair Housing and Equal Opportunity

FHA

Which process temporarily stalls foreclosure? Filing for Chapter 7 bankruptcy Fleeing the state Making a request for a break Paying off all debts

Filing for Chapter 7 bankruptcy

HUD's strategic plan outlines the ______ that support its mission. 12 departments Four goals Six regional citizen-led initiatives Three data collection systems

Four goals

Which of the following was created as part of the Homeowner Affordability and Stability Plan? American Recovery and Reinvestment Act of 2009 (ARRA) Consumer Financial Protection Bureau Home Affordable Modification Program (HAMP) Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)

Home Affordable Modification Program (HAMP)

Which of these is actually an amendment to the Truth in Lending Act (TILA)? Consumer Mortgage Protection Act Home Ownership and Equity Protection Act Honest Lending Education Act Real Estate Settlement Procedures Act

Home Ownership and Equity Protection Act

Which type of real estate investment trust derives its income from the rent or sale of property and interest dividends? Equity REIT Hybrid REIT Investment REIT Mortgage REIT

Hybrid REIT

Which of the following is a risk most associated with wholesaling as a real estate investment strategy? Inability to immediately resell the property for a profit Running out of money before repairs are finished Tenant issues Vacancies

Inability to immediately resell the property for a profit

Which of the following is classified as the least liquid on the scale? Checking accounts Institutional money market funds Savings accounts Traveler's checks

Institutional money market funds

Your client has a VA loan and wants to refinance to a lower rate. Which of the following is likely the simplest option? Cash out refinance program Convert to conventional to avoid the MIP Interest rate reduction refinance Obtain an adjustable rate mortgage with a low teaser rate

Interest rate reduction refinance

Which of the following characteristics applies to a partnership between mortgagors? Each partner puts up a share of the money and receives a commensurate portion of the mortgage payments It involves more than one mortgagor as owner, sharing responsibility for payment of a single mortgage. It makes the lender a partner in the project as well as the financier. It's designed to finance large real estate projects.

It involves more than one mortgagor as owner, sharing responsibility for payment of a single mortgage.

Life insurance companies are more concerned with long-term stability of investments than they are ___________. Assets Borrowers' credit ratings Liquidity The size of the project

Liquidity

According to RESPA, what must the lender give to the borrower at either the time of loan application or within three days following application? Closing Disclosure Freddie Mac borrower disclosure Loan Estimate TIL statement

Loan Estimate

What information is listed on the promissory note? Appraised value of property pledged as collateral Legal description of the collateral property Loan amount and schedule of repayment Title history of the collateral property

Loan amount and schedule of repayment

Conforming loan limits vary based on two factors: the number of units being purchased with the property and what else? Construction material Location Type of ownership Year built

Location

What are securities? Guarantees made by the Federal Reserve Insurance policies offered by the Federal Deposit Insurance Corporation Long- and short-term debt instruments Stock certificates issued by companies

Long- and short-term debt instruments

The Bransons have a conventional loan for which they were required to obtain private mortgage insurance. Their local real estate market has been going like gangbusters, and their house is now appraised at twice their loan balance! Will their PMI be cancelled? Maybe, but they'll have to petition their lender No, because PMI lasts for the life of the loan Yes, because their equity is over 20% Yes, because their equity position is at least 50%

Maybe, but they'll have to petition their lender

Both the Housing and Economic Recovery Act and the American Recovery and Reinvestment Act funded a program called the ______ program, which provided emergency assistance grants to states to purchase and redevelop foreclosed and abandoned homes and residential properties. Community Reinvestment Neighborhood Stabilization Rebuild Our Homes SAFE Neighborhood

Neighborhood Stabilization

What piece of information would an appraiser NOT find in the Subject and Contract sections of the report? Amount of real estate taxes HOA assessment amounts Legal description Neighborhood characteristics

Neighborhood characteristics

The buying and selling of government securities as a way to influence the money supply and balance economic growth describes ______. Discount window Federal funds rate Open-market operations Reserve requirements

Open-market operations

In which phase of the real estate market would you expect to see properties selling for more than they're worth, many buyers in the market, and lots of new construction? Expansion Over supply Recession Recovery

Over supply

A ______ is a mortgage-backed security issued by Freddie Mac. Home equity line of credit Participation certificate Real estate investment trust Reverse annuity mortgage

Participation certificate

Which of the following made mortgages attractive investments in the early 2000s? Falling home prices Falling interest rates Mortgages are not attractive investments Price of homes relative to anticipated future value

Price of homes relative to anticipated future value

The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______. Contract for deed Deed of trust Mortgage Promissory note

Promissory note

Which of the following characteristics would the appraiser find in the Neighborhood section of the URAR? Ethnicity breakdown Median income Property value trends Racial composition

Property value trends

he two most common methods used when a bank fails are the payout method and the ______ method. Buy and claim Cease and desist Default and foreclosure Purchase and assumption

Purchase and assumption

Which of the following taxes apply while an investor holds an investment property? Capital gains Recaptured depreciation Rental income Transfer

Rental income

The Federal Housing Administration's mission includes ______ through the establishment of lending standards and by insuring mortgages. Controlling the use of credit Encouraging all-cash transactions Reducing homeownership Stabilizing the mortgage market

Stabilizing the mortgage market

Rules and regulations that protect consumers of financial services are now the responsibility of ______, which was created by the Dodd-Frank Act. HUD The CFPB The ECOA The U.S. Department of Commerce

The CFPB

Which of the following entities support lenders in having adequate cash flow available? Local banks and credit unions Private investors and overseas investors The Federal Reserve and local banks The Federal Reserve and secondary mortgage markets

The Federal Reserve and secondary mortgage markets

What's another name for the Homeowner's Protection Act? HOPA The Home Safe Act of 1998 The PMI Act of 1997 The PMI Act of 1998

The PMI Act of 1998

The upfront MIP on an FHA loan is calculated on ______. The base loan amount The base loan amount divided by 12 The property's appraisal price The property's purchase price

The base loan amount

What's true about the draw period on a home equity line of credit (HELOC)? It's always at least five years. It's never more than 10 years. The draw period varies. There really isn't a draw period to speak of.

The draw period varies.

Which of the following real estate transactions is subject to recaptured depreciation? The purchase of an investment property The purchase of a residential, owner-occupied home The sale of a family home The sale of an investment property

The sale of an investment property

The appraiser of Garran's property used the Torrens system to perform a title search. Now a claim has been filed. Who or which entity will be the title guarantor? The buyer The lender The seller The state

The state

The funding fee on a VA loan is waived when ______. The sale price of the house is less than the CRV The veteran has a 10% or higher VA disability The veteran or active duty service member is ranked as an officer The veteran's full entitlement is not used

The veteran has a 10% or higher VA disability

Which of the following will be issued only if title is acceptable and an attorney provides a certificate of title opinion? Chain of title Deed Survey Title insurance policy

Title insurance policy

Mutual savings banks were created to serve ______ during the mid-19th century. The banking industry The federal government The states Workers

Workers

When borrowers started missing mortgage payments, how did this affect collateralized mortgage obligations? CMOs' return on investment increased due to late fee penalty payments received. CMOs sold more shares. CMOs were able to collect more than expected principal and interest payments. CMOs weren't collecting the expected principal and interest payments.

CMOs weren't collecting the expected principal and interest payments.

Freddie Mac and Fannie Mae set guidelines for conforming loans. Which of these are qualifying guidelines? Down payment requirement, loan-to-value ratio, housing debt-to-income ratio, and length of employment Loan amount, down payment requirement, housing debt-to-income ratio, and marital status Loan amount, down payment requirement, loan-to-value ratio, and housing debt-to-income ratio Loan amount, down payment requirement, loan-to-value ratio, and property square footage

Loan amount, down payment requirement, loan-to-value ratio, and housing debt-to-income ratio

The lender, the depository institution, and the _______ all complete parts of the request for verification of deposit form. Appraiser Loan applicant Seller Settlement agent

Loan applicant