4-5

A lender receives a mortgage loan application from a consumer for the purchase of a single-family residence. How soon must the lender provide the applicant with a Good Faith Estimate of settlement costs?

3 business days

If the seller has already paid the annual property tax bill when the house is sold, how will the tax proration appear on the settlement statement?

A debit to the buyer and a credit to the seller

When a buyer obtains a loan for the purpose of financing the purchase of real property, how does the amount of the loan obtained appear on the Closing Disclosure?

As a credit to the buyer, only.

In which of the following sequences would the listed documents be recorded? Select one: a. Buyer's mortgage, seller's satisfaction of mortgage, seller's deed to buyer b. Seller's deed to buyer, seller's satisfaction of mortgage, buyer's mortgage c. Seller's satisfaction of mortgage, seller's deed to buyer, buyer's mortgage d. Seller's satisfaction of mortgage, buyer's mortgage, seller's deed to buyer

C

The type of real estate closing which is overseen by a neutral third party without a special meeting of all the principals and attorneys is called a(n):

Escrow closing

RESPA covers loans for any type of residential first mortgage, regardless of how many family units make up the property.

False

A house sold for $109,000 with the buyer making a 20% down payment. The grantors tax is based on the:

Selling Price

The type of closing where a meeting is held with the buyer, the seller, the lender, the title insurance company and various attorneys and third parties in attendance is known as a(n):

Table closing

The purpose of the Real Estate Settlement Procedures Act is to:

To allow consumers to shop for settlement services

At closing, the seller receives credits for prepaid expenses related to the property.

True

RESPA was developed to help buyers understand settlement processes and costs.

True

The real estate contract is the blueprint for the closing and closing costs.

True

The HUD information booklet must be given to which of the following? Select one: a. Every person who submits a loan application to a lender over which RESPA has jurisdiction. b. Every person who visits a lender's office inquiring about first mortgage loans. c. Every person to whom a broker shows a home. d. Every person who refinances their existing mortgage.

a. Every person who submits a loan application to a lender over which RESPA has jurisdiction.

RESPA covers all of the following loans EXCEPT? Select one: a. Loans between family members. b. Loans that use federal insurance programs. c. Loans that are subsidized by federal funds. d. Loans that might be sold on the secondary market to any federally backed agency.

a. Loans between family members.

Which of the following controls a cash settlement? Select one: a. The Equal Credit Opportunity Act. b. Regulation Z, Truth-in-Lending. c. RESPA. d. Legal property description.

c. RESPA.

Sam is a licensed real estate salesperson and is working with a buyer in the purchase of a singlefamily residence. Sam recommends ACME Title to the buyer for the purchase of title insurance. ACME pays a referral fee to Sam. This action violates which of the following laws? Select one: a. Truth-in-Lending Act b. Fair Housing Act c. Real Estate Settlement Procedures Act d. None of the above, as the referral fee is not prohibited

c. Real Estate Settlement Procedures Act

Sam is a licensed real estate salesperson and is working with a buyer in the purchase of a single-family residence. Sam recommends ACME Title to the buyer for the purchase of title insurance. ACME pays a referral fee to Sam. This action violates which of the following laws? Select one: a. Truth-in-Lending Act. b. Fair Housing Act. c. Real Estate Settlement Procedures Act. d. None of the above, as the referral fee is not prohibited.

c. Real Estate Settlement Procedures Act.

After a closing, all of the following documents are recorded EXCEPT? Select one: a. The deed. b. The deed of trust. c. Satisfaction of loan documents for the seller's mortgage. d. A certified copy of the HUD 1 form.

d. A certified copy of the HUD 1 form.

When conducting a closing, the settlement agent is responsible for all of the following, EXCEPT: Select one: a. Collecting all legal documents and funds pertaining to the closing of the transaction b. Obtaining all information relevant to the marketability of the title c. Paying the net proceeds of the sale to the seller d. Payment of the commission to the listing salesperson

d. Payment of the commission to the listing salesperson

When conducting settlement, a broker may prepare which of the following? Select one: a. Deed of bargain and sale. b. Deed of trust. c. Warranty deed. d. Seller's closing statement.

d. Seller's closing statement.

Which of the following statements is most accurate regarding how discount points are listed on a closing statement in the purchase of a home? Select one: a. They would always be a debit to the buyer b. They would always be a debit to the seller c. They would most likely be a debit to the seller d. They would most likely be a debit to the buyer

d. They would most likely be a debit to the buyer