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REAL ESTATE FINANCE PRACTICE EXAM QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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REAL ESTATE FINANCE PRACTICE EXAM QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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REAL ESTATE FINANCE PRACTICE EXAMQUESTIONS AND ANSWERS WITH
SOLUTIONS 2024
A __________ is a permanent change in one or more of the terms of a borrower's loan.
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Loan Qualification
Y Y
Loan Modification
Y Y
Loan Approval
Y Y
Loan Origination - ANSWER Loan Modification
Y Y Y Y Y Y
What time period must borrowers have in job history with the same employer to qualify?
Y Y Y Y Y Y Y Y Y Y Y Y Y Y
2 months
Y Y
6 months
Y Y
1 year
Y Y
2 years - ANSWER 2 years
Y Y Y Y Y Y
Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower in taking a mortgag
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
e that carries high fees, a high interest rate, strips the borrower of equity, or places the borrower in a lower
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
credit rated loan to benefit the lender.
Y Y Y Y Y Y Y
Predatory lending
Y Y
Sub prime Mortgage
Y Y Y
Participation Agreement
Y Y
Fraud - ANSWER Predatory lending
Y Y Y Y Y
Why do lender care about unpaid taxes?
Y Y Y Y Y Y
They want to ensure your mortgage payment is not late
Y Y Y Y Y Y Y Y Y Y
,It makes the loan difficult to sell in the secondary market
Y Y Y Y Y Y Y Y Y Y Y
Unpaid property taxes are a superior lien to the right of the lender
Y Y Y Y Y Y Y Y Y Y Y Y Y
Lenders don't care about unpaid taxes -
Y Y Y Y Y Y Y
ANSWER Unpaid property taxes are a superior lien to the right of the lender
Y Y Y Y Y Y Y Y Y Y Y Y Y Y
A burden, obstruction, or impediment on the property that lessens its value or makes it less marketable.
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Lien
Y
Interest
Y
Encumbrance
Y
Mortgage - ANSWER Encumbrance
Y Y Y Y
Which party is not included on the deed of trust?
Y Y Y Y Y Y Y Y Y
Mortgagor
Y
Mortgagee
Y
Trustor
Y
Trustee - ANSWER Trustor
Y Y Y Y
The mortgage or deed of trust will contain ___________ that permits the lender to demand that the entire
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
balance of the loan be repaid if the borrower defaults.
Y Y Y Y Y Y Y Y Y Y
Due on sale clause
Y Y Y Y
Acceleration clause
Y Y
Alienation clause
Y Y
Balloon clause - ANSWER Acceleration clause
Y Y Y Y Y Y
One of the largest buyers of securities is _________.
Y Y Y Y Y Y Y Y
Credit Unions
Y Y
Pension Funds
Y Y
, China
Y
American Public - ANSWER Pension Funds
Y Y Y Y Y Y
A company or individual that originates mortgage loans and sells them to investors, while taking care of bo
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
rrowers loan payments, records, taxes, and insurance.
Y Y Y Y Y Y
Mortgage Bankers
Y Y
Mortgage Brokers
Y Y
Loan Originators
Y Y
Secondary Market - ANSWER Mortgage Bankers
Y Y Y Y Y Y
The largest buyer of residential mortgages in the United States today.
Y Y Y Y Y Y Y Y Y Y
FHLMC
Y
GNMA
Y
Banks
Y
FNMA - ANSWER FNMA
Y Y Y Y
Provides cash advances to members, including community banks, thrifts, credit unions and community de
Y Y Y Y Y Y Y Y Y Y Y Y Y
velopment financial institutions.
Y Y
FNMA
Y
FHLMC
Y
FHLB
Y
Banks - ANSWER FNMA
Y Y Y Y
Loan amount is $337,500. Down payment is $37,500. What is the LTV?
Y Y Y Y Y Y Y Y Y Y Y
10%
Y
11%
Y
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