Washington Real Estate AMP Questions and Answers | Verified & Updated

Chapter 1 - Loans Which is not correct regarding the reserve amount? A) the amount of money the Federal Reserve requires lenders to hold in reserve B) reserve amounts may be used by the lender C) reserves must remain in a special account D) reserves are regulated by the Federal Reserve - B) reserve amounts may be used by the lender Feedback: Correct: The reserve account helps keep the economy stable by controlling the money supply. Bob noticed that there was a lien recorded against his property at the County Auditor's Office. More than likely the lien is a: A) a license issued by Bob for the neighbor to use a foot path B) a restrictive covenant recorded by the subdivision C) the mortgage that he signed for with his lender D) an easement in gross required by his local utility - C) the mortgage that he signed for with his lenderFeedback: Correct: A lien is a monetary requirement recorded against property. This would be a mortgage. License and an easement would be a "use" interest. What is the major difference between a mortgage banker and a mortgage broker? A) the mortgage broker originates loans and the mortgage banker finds the best deal program for their customers B) the mortgage broker finds the best debt program for their buying customers and brings borrowers and lenders together. The mortgage banker originates loans and puts them into packaged programs and sells the packages in the open market. - B) the mortgage broker finds the best debt program for their buying customers and brings borrowers and lenders together. The mortgage banker originates loans and puts them into packaged programs and sells the packages in the open market. Feedback: Correct: The mortgage banker originates the loan and puts them in a packages for the open market. Their buyers include Fannie Mae and Freddie Mac as well as Wall Street firms. The mortgage broker keeps informed of the lending industry. They bring borrowers and lenders together by putting together individual mortgage programs. In return they receive a percentage commission based on the percentage of the money borrowed. When working with a lender for a loan, which of the following would be the unique application requirement of a credit union? A) the applicant would need to obtain a "paid for" credit report B) the applicant would have to purchase a title policy on behalf of the lender C) the applicant wouldn't need a cosignerD) the applicant would have to join the credit union - D) the applicant would have to join the credit union Feedback: Correct: All lenders will require a credit report and title insurance. Few lenders would require a co-signer. Some credit unions will require an applicant to join the credit union. Who determines how much money will be printed by the Treasury Department? A) Treasury Department B) National Banking Commission C) Federal Reserve D) Congress - C) Federal Reserve Feedback: Correct: The "Fed" or the Federal Reserve determines how much money is to be printed. An oversupply of money can cause: A) inflation B) recession C) deflati