REAL ESTATE FINANCING EXAM PRACTICE EXAM
2025 | ALL QUESTIONS AND WELL DETAILED
ANSWERS | ALREADY GRADED A+||NEWEST
VERSION 2025/26
Security interest gives the _______ the right to bring about sale of a loan if there is
default.
a. hypothecation
b. borrower
c. mortgagee
d. grantee -CORRECTANSWER c. mortgagee
Compensation for borrowed money is called:
a. mortgagor
b. interest
c. collateral
d. none of the above -CORRECTANSWER b. interest
This is normally executed contemporaneously with a mortgage and creates the
obligation of re-payment.
,a. promissory note
b. payment insurance
c. charges and liens
d. deed covenants -CORRECTANSWER a. promissory note
The allodial system of landownership that forms the basis of ownership in the United
States is best described as the:
a. right to occupy and use land owned by a superior
b. right of a democratic government to control how land is used
c. ownership of land is free and absolute, subject only to governmental and voluntary
restrictions
d. origin and development of community property laws -CORRECTANSWER c.
ownership of land is free and absolute, subject only to governmental and voluntary
restrictions
Which of the following is a charge that is itemized separately from loan fees as a
primary purpose to raise the yield?
a. statutory costs
b. loan closing costs
c. effective interest
d. discount points -CORRECTANSWER d. discount points
,Bonds are sold in the financial market by corporations for the purpose of:
a. raising equity cash
b. borrowing money
c. providing additional brokerage fees
d. generating greater income -CORRECTANSWER c. providing additional brokerage
fees
The process of creating mortgage-backed securities is called:
a. mortgage pooling
b. Ginnie Mae Pass-Through Certificates
c. mortgage securitization
d. Federal Home Loan Bonds -CORRECTANSWER c. mortgage securitization
The FHA is regulated by which of the following?
a. Federal Housing Finance Agency
b. First Housing Administration
c. Farmers Home Administration
d. Department of Housing and Urban Development -CORRECTANSWER d. department
of Housing and Urband Development (HUD)
, The mortgage crisis that started in late 2007 has caused a shift in the emphasis in the
primary loan origination from subprime to which of the following loan types?
a. Veterans Administration mortgage loans
b. Conventional Conforming mortgage loans
c. Alternate- a mortgage loans
d. Federal Housing Administration mortgage loans -CORRECTANSWER d. Federal
Housing Administration (FHA) mortgage loans
Residential real estate tends to peak ______________.
a. after a recession has begun
b. at the trough of a business cycle
c. just before business cycles do
d. at the peak of commercial real estate cycles -CORRECTANSWER c. just before
business cycles do
Long before coin or currency came into use, __________________.
a. humans began to use base metal pieces as coins
b. bartering was the only method of exchange
c. trade didin't exist
2025 | ALL QUESTIONS AND WELL DETAILED
ANSWERS | ALREADY GRADED A+||NEWEST
VERSION 2025/26
Security interest gives the _______ the right to bring about sale of a loan if there is
default.
a. hypothecation
b. borrower
c. mortgagee
d. grantee -CORRECTANSWER c. mortgagee
Compensation for borrowed money is called:
a. mortgagor
b. interest
c. collateral
d. none of the above -CORRECTANSWER b. interest
This is normally executed contemporaneously with a mortgage and creates the
obligation of re-payment.
,a. promissory note
b. payment insurance
c. charges and liens
d. deed covenants -CORRECTANSWER a. promissory note
The allodial system of landownership that forms the basis of ownership in the United
States is best described as the:
a. right to occupy and use land owned by a superior
b. right of a democratic government to control how land is used
c. ownership of land is free and absolute, subject only to governmental and voluntary
restrictions
d. origin and development of community property laws -CORRECTANSWER c.
ownership of land is free and absolute, subject only to governmental and voluntary
restrictions
Which of the following is a charge that is itemized separately from loan fees as a
primary purpose to raise the yield?
a. statutory costs
b. loan closing costs
c. effective interest
d. discount points -CORRECTANSWER d. discount points
,Bonds are sold in the financial market by corporations for the purpose of:
a. raising equity cash
b. borrowing money
c. providing additional brokerage fees
d. generating greater income -CORRECTANSWER c. providing additional brokerage
fees
The process of creating mortgage-backed securities is called:
a. mortgage pooling
b. Ginnie Mae Pass-Through Certificates
c. mortgage securitization
d. Federal Home Loan Bonds -CORRECTANSWER c. mortgage securitization
The FHA is regulated by which of the following?
a. Federal Housing Finance Agency
b. First Housing Administration
c. Farmers Home Administration
d. Department of Housing and Urban Development -CORRECTANSWER d. department
of Housing and Urband Development (HUD)
, The mortgage crisis that started in late 2007 has caused a shift in the emphasis in the
primary loan origination from subprime to which of the following loan types?
a. Veterans Administration mortgage loans
b. Conventional Conforming mortgage loans
c. Alternate- a mortgage loans
d. Federal Housing Administration mortgage loans -CORRECTANSWER d. Federal
Housing Administration (FHA) mortgage loans
Residential real estate tends to peak ______________.
a. after a recession has begun
b. at the trough of a business cycle
c. just before business cycles do
d. at the peak of commercial real estate cycles -CORRECTANSWER c. just before
business cycles do
Long before coin or currency came into use, __________________.
a. humans began to use base metal pieces as coins
b. bartering was the only method of exchange
c. trade didin't exist
