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TREBS exam 2 Questions with Detailed
Verified Answers (100% Correct Answers)
/Already Graded A+
FHA loans are_______________________ and VA loans
are_________________________.
A. Insured by the Federal Housing Administration ----- guaranteed by the Department of
Veteran Affairs.
B. Backed by conventional banks ----- backed by commercial banks
C. Only for people with children ----- only for people without children
D. Farm loans ----- lake loans
Ans: A. Insured by the Federal Housing Administration ----- guaranteed by the Department of
Veteran Affairs.
The expenses, which a lender incurs while processing a mortgage loan application, are
recovered from the borrower as:
A. Discount points
B. An origination fee
C. A mortgage insurance premium
D. Private mortgage insurance
Ans: B. An origination fee
Zoning is enforced by:
A. Building permits
B. Building codes
C. Building inspectors
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D. All of the above
Ans: D. All of the above
Land plus new construction cost minus depreciation is the formula for the ________.
A. Cost approach
B. Market data approach
C. Income approach
D. Capitalization approach
Ans: A. Cost approach
Removing the original borrower's name from the contract and substituting the new buyers
name is called:
A. Novation
B. Substitute
C. Covenants
D. Subdividing
Ans: A. Novation
The right to redeem the property before a mortgage foreclosure sale is called:
A. Equitable redemption
B. Buyer redemption
C. Statutory redemption
D. This is never used in Texas.
Ans: A. Equitable redemption
The right to redeem the property after a tax foreclosure sale is called:
A. Equitable redemption
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B. Buyer redemption
C. Statutory redemption
D. This is never used in Texas.
Ans: C. Statutory redemption
The Texas Bootstrap Loan Program:
A. Is a self-help housing construction program for very low-income families
B. Is only for persons over 65
C. Must be built completely by the family
D. Is only for homes costing more than $300,000
Ans: A. Is a self-help housing construction program for very low-income families
The Federal Reserve Bank:
A. Is the most common bank seen in most cities
B. Was created to provide the nation with a more stable monetary and financial system
C. Provides loans to most residential home buyers.
D. Was created in 2013
Ans: B. Was created to provide the nation with a more stable monetary and financial system
A mortgage that includes real estate and personal property is a:
A. Reverse mortgage
B. Package mortgage
C. Blanket mortgage
D. Equity mortgage
Ans: B. Package mortgage
The Federal National Mortgage Association was organized by the federal government in
1938 to buy FHA mortgage loans from lenders. What else is true about FNMA?
TREBS exam 2 Questions with Detailed
Verified Answers (100% Correct Answers)
/Already Graded A+
FHA loans are_______________________ and VA loans
are_________________________.
A. Insured by the Federal Housing Administration ----- guaranteed by the Department of
Veteran Affairs.
B. Backed by conventional banks ----- backed by commercial banks
C. Only for people with children ----- only for people without children
D. Farm loans ----- lake loans
Ans: A. Insured by the Federal Housing Administration ----- guaranteed by the Department of
Veteran Affairs.
The expenses, which a lender incurs while processing a mortgage loan application, are
recovered from the borrower as:
A. Discount points
B. An origination fee
C. A mortgage insurance premium
D. Private mortgage insurance
Ans: B. An origination fee
Zoning is enforced by:
A. Building permits
B. Building codes
C. Building inspectors
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D. All of the above
Ans: D. All of the above
Land plus new construction cost minus depreciation is the formula for the ________.
A. Cost approach
B. Market data approach
C. Income approach
D. Capitalization approach
Ans: A. Cost approach
Removing the original borrower's name from the contract and substituting the new buyers
name is called:
A. Novation
B. Substitute
C. Covenants
D. Subdividing
Ans: A. Novation
The right to redeem the property before a mortgage foreclosure sale is called:
A. Equitable redemption
B. Buyer redemption
C. Statutory redemption
D. This is never used in Texas.
Ans: A. Equitable redemption
The right to redeem the property after a tax foreclosure sale is called:
A. Equitable redemption
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B. Buyer redemption
C. Statutory redemption
D. This is never used in Texas.
Ans: C. Statutory redemption
The Texas Bootstrap Loan Program:
A. Is a self-help housing construction program for very low-income families
B. Is only for persons over 65
C. Must be built completely by the family
D. Is only for homes costing more than $300,000
Ans: A. Is a self-help housing construction program for very low-income families
The Federal Reserve Bank:
A. Is the most common bank seen in most cities
B. Was created to provide the nation with a more stable monetary and financial system
C. Provides loans to most residential home buyers.
D. Was created in 2013
Ans: B. Was created to provide the nation with a more stable monetary and financial system
A mortgage that includes real estate and personal property is a:
A. Reverse mortgage
B. Package mortgage
C. Blanket mortgage
D. Equity mortgage
Ans: B. Package mortgage
The Federal National Mortgage Association was organized by the federal government in
1938 to buy FHA mortgage loans from lenders. What else is true about FNMA?
