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TEXAS PRE-LICENSE-REAL ESTATE FINANCE EXAM
QUESTION BANK ALL 550 QUESTIONS AND
CORRECT DETAILED SOLUTIONS JUST RELEASED
THIS YEAR
QUESTION: How many parties are involved in a deed of trust?
A. four
B. two
C. three
D. one - ANSWER✔✔C. three
QUESTION: How does the VA pay for its loan guarantee program?
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A. by charging a funding fee
B. by selling securities
C. by charging an origination fee
D. by taxing the public - ANSWER✔✔A. by charging a funding fee
QUESTION: In general, when interest rates fall, property values:
A. remain the same
B. are stabilized by the Fed
C. rise
D. also fall - ANSWER✔✔C. rise
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QUESTION: The Federal Reserve recently raised the discount rate. What is a possible result
from this decision?
A. a decrease in the price of housing loans
B. an increase in the price of housing loans
C. an increase in the supply of housing loans
D. an increase in the demand of housing - ANSWER✔✔B. an increase in the price of housing
loans
QUESTION: Which of these actions would a mortgage's due-on-sale clause prevent?
A. Jeremy transfers his existing mortgage to the buyer of his home.
B. Jessica pays off her remaining mortgage balance in one lump sum.
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C. Jedidiah misses a few mortgage payments, and the lender demands that the full balance of
the loan be paid immediately.
D. Jerome takes out a home equity loan to build a new swimming pool, using his home as
collateral. - ANSWER✔✔A. Jeremy transfers his existing mortgage to the buyer of his home.
QUESTION: A lender makes a $100 million loan on a commercial property. Another investor
purchases $20 million of the loan. What is this an example of?
A. a REIT
B. the primary mortgage market
C. a participation agreement
D. a tranche - ANSWER✔✔C. a participation agreement
QUESTION: Loans guaranteed by the Department of Veterans Affairs (VA) usually require a(n):
TEXAS PRE-LICENSE-REAL ESTATE FINANCE EXAM
QUESTION BANK ALL 550 QUESTIONS AND
CORRECT DETAILED SOLUTIONS JUST RELEASED
THIS YEAR
QUESTION: How many parties are involved in a deed of trust?
A. four
B. two
C. three
D. one - ANSWER✔✔C. three
QUESTION: How does the VA pay for its loan guarantee program?
, Page 2 of 235
A. by charging a funding fee
B. by selling securities
C. by charging an origination fee
D. by taxing the public - ANSWER✔✔A. by charging a funding fee
QUESTION: In general, when interest rates fall, property values:
A. remain the same
B. are stabilized by the Fed
C. rise
D. also fall - ANSWER✔✔C. rise
, Page 3 of 235
QUESTION: The Federal Reserve recently raised the discount rate. What is a possible result
from this decision?
A. a decrease in the price of housing loans
B. an increase in the price of housing loans
C. an increase in the supply of housing loans
D. an increase in the demand of housing - ANSWER✔✔B. an increase in the price of housing
loans
QUESTION: Which of these actions would a mortgage's due-on-sale clause prevent?
A. Jeremy transfers his existing mortgage to the buyer of his home.
B. Jessica pays off her remaining mortgage balance in one lump sum.
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C. Jedidiah misses a few mortgage payments, and the lender demands that the full balance of
the loan be paid immediately.
D. Jerome takes out a home equity loan to build a new swimming pool, using his home as
collateral. - ANSWER✔✔A. Jeremy transfers his existing mortgage to the buyer of his home.
QUESTION: A lender makes a $100 million loan on a commercial property. Another investor
purchases $20 million of the loan. What is this an example of?
A. a REIT
B. the primary mortgage market
C. a participation agreement
D. a tranche - ANSWER✔✔C. a participation agreement
QUESTION: Loans guaranteed by the Department of Veterans Affairs (VA) usually require a(n):
