TX 30 Hour Real Estate Finance Practice Exam.pdf file:///C:/Users/HP/Desktop/NIW/TX%2030%20Hour%20Real%20E
TX 30 Hour Real Estate Finance Practice Exam
1. Which of the following would the FDIC most likely not insure?
ANS Stock certifi- cates
2. In which type of partnership does each mortgagee receive a share of the mortgage
payment?
ANS Partnership among mortgagees
(In a partnership among mortgagees several mortgagees come together, usually to finance a
large project. They contribute an equal share of funding in exchange for equal share of the
mortgage payments.)
3. What information does Schedule B-1 of a title commitment provide?
ANS Re- quirements that must met before a title policy will be issued
(Schedule B-1 lists items the title insurance company requires to be addressed before they'll
issue the title insurance policy. This may include resolving liens or paying taxes that are due,
among other items.)
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4. In which type of partnership is there is more than one mortgagor as own- er?
ANS Partnership among mortgagors
(A partnership among mortgagors involves several mortgagors sharing responsibili- ty for a
single mortgage. This is usually on a multi-family dwelling, and may be called a cooperative.)
5. Mutual savings banks prefer to keep their lending activities in their immedi- ate
geographic area.Why?
ANS They prefer to personally monitor the loans they issue.
(Mutual savings banks prefer to keep their mortgage lending in the immediate geographic area
(think East Coast) so they can closely monitor the loans.)
6. From a lender's perspective, the lower the credit score, .
ANS The higher the risk
(A credit score is a number ranging between 300 and 850. The lower the number, the higher the
risk.)
7. Maria is a borrower reviewing her Closing Disclosure. She notices a section under
"Other Costs" with a number of fees that were not shown on her Loan Estimate, such as
the commissions to the real estate brokers and the home inspection fee. Should Maria
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contact her lender about this issue?
ANS No, these are costs that are part of the total cost to close but aren't part of obtaining the
loan, so they weren't required to be on the Loan Estimate.
(Maria can always contact her lender for an explanation, but the fees listed in this
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section are not shown on the Loan Estimate because they aren't part of obtaining the loan, and
aren't required on that form.)
8. The was enacted in 1968 as part of the Consumer Credit Protection Act.
ANS Truth in Lending Act
(The Truth in Lending Act (TILA) was enacted in 1968 and requires lenders to dis- close
financing terms to consumers in a manner that's not misleading or deceitful.)
9. Mike's been friends with Tim since college.They often work together
ANS Mike flips houses andTim's an appraiser that he uses frequently. It works out great
for both friends and Mike definitely gets a better appraised value on the flips Tim
handles. For every appraisal Tim handles for him, Mike gives him a $100 gift card. In
what illegal practice does it sound like they're engaging?
ANS Falsely inflating appraisals
(An inflated appraisal occurs when an appraiser intentionally submits a misleading report to a
lender that indicates an inflated property value. Inflated appraisals are illegal and can get both
of these guys in trouble.)
10. Vantagestar Ltd. would like to construct a high-end condominium complex. Where will
they likely go for financing this project?
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