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GOLD COAST 2019 PRACTICE EXAM QUESTIONS AND ANSWERS 100 % PASS A+ GRAD
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GOLD COAST 2019 PRACTICE EXAM QUESTIONS AND ANSWERS 100 % PASS A+ GRAD
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GOLD COAST 2019 PRACTICE EXAM 2024-2025 QUESTIONS AND ANSWERS 100 %PASS A+ GRADE
Which clause in a mortgage requires the lender to acknowledge performance by the borrower?
A. Estoppel
B. Acceleration
C. Defeasance
D. Release - answer>>C. Defeasance
In order to qualify for an FHA 203b insured mortgage loan, an applicant's housing expense ratio cannot
exceed what percentage?
A. 25%
B. 28%
C. 31%
D. 43% - answer>>C. 31%
Which statement best describes a short sale?
A. A real estate transaction that closes in under 30 days
B. A settlement agreement where the lender agrees to a sales price that is below the outstanding loan
balance
C. A real estate transaction where the seller agrees to assist the buyer by taking a second mortgage
D. A transaction that does not close due to a buyer's shortage of funds at closing - answer>>B. A
settlement agreement where the lender agrees to a sales price that is below the outstanding loan
balance
What is the purpose of a receivership clause in a mortgage?
A. It is used to protect the value of the investment property during the foreclosure process
,B. It conveys the ownership of mortgaged property to the rightful heirs of a decedent
C. It allows an owner to charge rent when a property is mortgaged
D. It specifies the party who is entitled to ownership of mortgaged property when a loan has been fully
paid - answer>>A. It is used to protect the value of the investment property during the foreclosure
process
Which term refers to the right of a mortgagor in default to pay all money owed and prevent the sale of
the property at foreclosure?
A. Equity of redemption
B. Estoppel
C. Defeasance
D. Right of release - answer>>A. Equity of redemption
What is the primary purpose of discount points?
A. To subsidize the purchase of homes by low-income borrowers
B. To decrease the monthly payment required
C. To stop disintermediation
D. To decrease the lender's yield - answer>>B. To decrease the monthly payment required
What are the two ratios under which a borrower must qualify in order to receive a FHA insured
mortgage loan?
A. Housing expense and monthly gross income ratios
B. Housing expense and total monthly obligations ratios
C. Gross income and total obligation ratios
D. Housing expense net ratio and total monthly obligations net radio - answer>>B. Housing expense and
total monthly obligations ratio
,What process is used by loan underwriters to determine if applicants are satisfactory credit risks?
A. Servicing
B. Brokering
C. Qualifying
D. Leveraging - answer>>C. Qualifying
A borrower is consistently late on their mortgage payments, so the bank exercises its ability to raise the
interest rate. Which clause in the mortgage document allows the lender to do this?
A. Default rate mortgage clause
B. Escalation clause
C. Late payment clause
D. Due on sale clause - answer>>B. Escalation clause
How was title taken if a seller remained solely liable for the balance of a mortgage loan subsequent to
transfer of ownership?
A. Novation
B. Assumption
C. Subject to
D. Agreement for deed - answer>>C. Subject to
After all lines have been paid following a foreclosure sale, to who, do any remaining funds belong to?
A. The sheriff of the county in which the property is located
B. The clerk of the circuit court
C. The mortgagor
D. The mortgagee - answer>>C. The mortgagor
, Which mortgage clause is the borrower's promise to pay the property taxes during the period of the
loan?
A. Maintenance
B. Defeasance
C. Receivership
D. Tax - answer>>D. Tax
Which of the following is an example of a unilateral contract?
A. Purchase and sale contract
B. Contract for deed
C. Open listing contract
D. Oral contract - answer>>C. Open listing contract
In which circumstance is a broker's commission subject to forfeiture?
A. The broker had an oral listing contract
B. The broker fails to obtain witnesses to a real estate sales contract
C. The broker performs according to the employment contract
D. The broker violates a fiduciary duty - answer>>D. The broker violates a fiduciary duty
If an owner revokes an exclusive right of sale listing and sells the property during the remaining time the
listing would have been in effect, what is the broker entitled to?
A. A full commission
B. Bring a suit for damages
C. Write off the loss on their income taxes
D. Revoke the listing contract - answer>>A. A full commission
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