TX 30 Hour Real Estate Finance Practice
Exam Questions & Correct and Verified
Answers.Latest update2025/2026 Graded
A+, Exams of Nursing
Which of the following would the FDIC most likely not insure? - CORRECT ANSWERS Stock
certificates
In which type of partnership does each mortgagee receive a share of the mortgage payment? - CORRECT
ANSWERS Partnership among mortgagees
(In a partnership among mortgagees several mortgagees come together, usually to finance a large
project. They contribute an equal share of funding in exchange for equal share of the mortgage
payments.)
What information does Schedule B-1 of a title commitment provide? - CORRECT ANSWERS
Requirements that must met before a title policy will be issued
(Schedule B-1 lists items the title insurance company requires to be addressed before they'll issue the
title insurance policy. This may include resolving liens or paying taxes that are due, among other items.)
In which type of partnership is there is more than one mortgagor as owner? - CORRECT ANSWERS
Partnership among mortgagors
(A partnership among mortgagors involves several mortgagors sharing responsibility for a single
mortgage. This is usually on a multi-family dwelling, and may be called a cooperative.)
Mutual savings banks prefer to keep their lending activities in their immediate geographic area. Why? -
CORRECT ANSWERS They prefer to personally monitor the loans they issue.
(Mutual savings banks prefer to keep their mortgage lending in the immediate geographic area (think
East Coast) so they can closely monitor the loans.)
From a lender's perspective, the lower the credit score, _______. - CORRECT ANSWERS The
higher the risk
(A credit score is a number ranging between 300 and 850. The lower the number, the higher the risk.)
Maria is a borrower reviewing her Closing Disclosure. She notices a section under "Other Costs" with a
number of fees that were not shown on her Loan Estimate, such as the commissions to the real estate
brokers and the home inspection fee. Should Maria contact her lender about this issue? - CORRECT
ANSWERS No, these are costs that are part of the total cost to close but aren't part of
obtaining the loan, so they weren't required to be on the Loan Estimate.
,(Maria can always contact her lender for an explanation, but the fees listed in this section are not shown
on the Loan Estimate because they aren't part of obtaining the loan, and aren't required on that form.)
The ______ was enacted in 1968 as part of the Consumer Credit Protection Act. - CORRECT ANSWERS
Truth in Lending Act
(The Truth in Lending Act (TILA) was enacted in 1968 and requires lenders to disclose financing terms to
consumers in a manner that's not misleading or deceitful.)
Mike's been friends with Tim since college. They often work together: Mike flips houses and Tim's an
appraiser that he uses frequently. It works out great for both friends and Mike definitely gets a better
appraised value on the flips Tim handles. For every appraisal Tim handles for him, Mike gives him a $100
gift card. In what illegal practice does it sound like they're engaging? - CORRECT ANSWERS
Falsely inflating appraisals
(An inflated appraisal occurs when an appraiser intentionally submits a misleading report to a lender
that indicates an inflated property value. Inflated appraisals are illegal and can get both of these guys in
trouble.)
Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for
financing this project? - CORRECT ANSWERS A life insurance company
(This is a project for a life insurance company because they prefer to be involved with large commercial
projects.)
Which of the following types of residential dwellings do life insurance companies purchase from the
secondary mortgage market? - CORRECT ANSWERS Single-family on one lot
(Life insurance companies purchase single-family homes from the secondary market.)
The Federal Housing Administration's qualifying standards for a mortgage loan ______, but the
mortgage insurance the FHA provides balances the risk for the lender. - CORRECT ANSWERS
Are somewhat less stringent than standards for conventional loans
(FHA qualification standards are less stringent than standards for conventional loans, but a down
payment is required.)
How is a loan assumption documented? - CORRECT ANSWERS The buyer and seller both sign
an assumption agreement.
(If the lender agrees to let the buyer assume the loan, an assumption agreement between buyer and
seller documents the change.)
Which generation financed their homes due to also having other debt obligations? - CORRECT ANSWERS
Echo Boomers
(Financing is how Echo Boomers were able to purchase homes since they were also paying off school
loans.)
, There are fewer properties available in the market than there are interested buyers. What type of
market does this describe? - CORRECT ANSWERS Seller's market
(When there are more buyers than there are properties, the seller has the advantage. This is a seller's
market.)
What is the trustee's role when a deed of trust is used to secure property for a loan? - CORRECT
ANSWERS To hold legal title to the property on behalf of the beneficiary until the loan is repaid
(When a deed of trust is used in a title theory state, the trustee holds legal title to the property on
behalf of the beneficiary.)
Kendra has applied for a mortgage from Best Bank. When is Best Bank required to provide Kendra with a
Loan Estimate? - CORRECT ANSWERS Three business days
(Kendra should receive a Loan Estimate from the lender within three business days after submitting her
application.)
About 50% of the borrowers in Neighborhood One are Hispanic, while only 4% in Neighborhood Two are
Hispanic. The median home price in both neighborhoods is the same. However, statistics show that
there is a significantly greater percentage of minority and low-income borrows who were denied
financing for loans on properties in Neighborhood Two and were offered lower rates to live in
Neighborhood One. What act is intended to prevent this type of potentially discriminatory lending
pattern? - CORRECT ANSWERS Home Mortgage Disclosure Act
(The Home Mortgage Disclosure Act requires many financial institutions to publicly disclose information
about mortgages, allowing public officials to make informed policy decisions and revealing potentially
discriminatory lending patterns.)
Federal Housing Finance Agency established percentage targets and ___________ for loans made to
low- to moderate-income borrowers. - CORRECT ANSWERS Limits for conforming loans
(The Federal Housing Finance Agency sets limits for conforming loans.)
Conventional loans from large commercial banks are the primary target for which secondary market
player? - CORRECT ANSWERS Fannie Mae
(Fannie Mae buys conventional loans, mainly from large commercial banks.)
Mutual savings banks were created to serve ______ during the mid-19th century. - CORRECT ANSWERS
Workers
(Mutual savings banks are primarily concentrated along the East Coast and were created to serve
workers during the industrial expansion of the mid-19th century.)
John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is
$350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000,
Exam Questions & Correct and Verified
Answers.Latest update2025/2026 Graded
A+, Exams of Nursing
Which of the following would the FDIC most likely not insure? - CORRECT ANSWERS Stock
certificates
In which type of partnership does each mortgagee receive a share of the mortgage payment? - CORRECT
ANSWERS Partnership among mortgagees
(In a partnership among mortgagees several mortgagees come together, usually to finance a large
project. They contribute an equal share of funding in exchange for equal share of the mortgage
payments.)
What information does Schedule B-1 of a title commitment provide? - CORRECT ANSWERS
Requirements that must met before a title policy will be issued
(Schedule B-1 lists items the title insurance company requires to be addressed before they'll issue the
title insurance policy. This may include resolving liens or paying taxes that are due, among other items.)
In which type of partnership is there is more than one mortgagor as owner? - CORRECT ANSWERS
Partnership among mortgagors
(A partnership among mortgagors involves several mortgagors sharing responsibility for a single
mortgage. This is usually on a multi-family dwelling, and may be called a cooperative.)
Mutual savings banks prefer to keep their lending activities in their immediate geographic area. Why? -
CORRECT ANSWERS They prefer to personally monitor the loans they issue.
(Mutual savings banks prefer to keep their mortgage lending in the immediate geographic area (think
East Coast) so they can closely monitor the loans.)
From a lender's perspective, the lower the credit score, _______. - CORRECT ANSWERS The
higher the risk
(A credit score is a number ranging between 300 and 850. The lower the number, the higher the risk.)
Maria is a borrower reviewing her Closing Disclosure. She notices a section under "Other Costs" with a
number of fees that were not shown on her Loan Estimate, such as the commissions to the real estate
brokers and the home inspection fee. Should Maria contact her lender about this issue? - CORRECT
ANSWERS No, these are costs that are part of the total cost to close but aren't part of
obtaining the loan, so they weren't required to be on the Loan Estimate.
,(Maria can always contact her lender for an explanation, but the fees listed in this section are not shown
on the Loan Estimate because they aren't part of obtaining the loan, and aren't required on that form.)
The ______ was enacted in 1968 as part of the Consumer Credit Protection Act. - CORRECT ANSWERS
Truth in Lending Act
(The Truth in Lending Act (TILA) was enacted in 1968 and requires lenders to disclose financing terms to
consumers in a manner that's not misleading or deceitful.)
Mike's been friends with Tim since college. They often work together: Mike flips houses and Tim's an
appraiser that he uses frequently. It works out great for both friends and Mike definitely gets a better
appraised value on the flips Tim handles. For every appraisal Tim handles for him, Mike gives him a $100
gift card. In what illegal practice does it sound like they're engaging? - CORRECT ANSWERS
Falsely inflating appraisals
(An inflated appraisal occurs when an appraiser intentionally submits a misleading report to a lender
that indicates an inflated property value. Inflated appraisals are illegal and can get both of these guys in
trouble.)
Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for
financing this project? - CORRECT ANSWERS A life insurance company
(This is a project for a life insurance company because they prefer to be involved with large commercial
projects.)
Which of the following types of residential dwellings do life insurance companies purchase from the
secondary mortgage market? - CORRECT ANSWERS Single-family on one lot
(Life insurance companies purchase single-family homes from the secondary market.)
The Federal Housing Administration's qualifying standards for a mortgage loan ______, but the
mortgage insurance the FHA provides balances the risk for the lender. - CORRECT ANSWERS
Are somewhat less stringent than standards for conventional loans
(FHA qualification standards are less stringent than standards for conventional loans, but a down
payment is required.)
How is a loan assumption documented? - CORRECT ANSWERS The buyer and seller both sign
an assumption agreement.
(If the lender agrees to let the buyer assume the loan, an assumption agreement between buyer and
seller documents the change.)
Which generation financed their homes due to also having other debt obligations? - CORRECT ANSWERS
Echo Boomers
(Financing is how Echo Boomers were able to purchase homes since they were also paying off school
loans.)
, There are fewer properties available in the market than there are interested buyers. What type of
market does this describe? - CORRECT ANSWERS Seller's market
(When there are more buyers than there are properties, the seller has the advantage. This is a seller's
market.)
What is the trustee's role when a deed of trust is used to secure property for a loan? - CORRECT
ANSWERS To hold legal title to the property on behalf of the beneficiary until the loan is repaid
(When a deed of trust is used in a title theory state, the trustee holds legal title to the property on
behalf of the beneficiary.)
Kendra has applied for a mortgage from Best Bank. When is Best Bank required to provide Kendra with a
Loan Estimate? - CORRECT ANSWERS Three business days
(Kendra should receive a Loan Estimate from the lender within three business days after submitting her
application.)
About 50% of the borrowers in Neighborhood One are Hispanic, while only 4% in Neighborhood Two are
Hispanic. The median home price in both neighborhoods is the same. However, statistics show that
there is a significantly greater percentage of minority and low-income borrows who were denied
financing for loans on properties in Neighborhood Two and were offered lower rates to live in
Neighborhood One. What act is intended to prevent this type of potentially discriminatory lending
pattern? - CORRECT ANSWERS Home Mortgage Disclosure Act
(The Home Mortgage Disclosure Act requires many financial institutions to publicly disclose information
about mortgages, allowing public officials to make informed policy decisions and revealing potentially
discriminatory lending patterns.)
Federal Housing Finance Agency established percentage targets and ___________ for loans made to
low- to moderate-income borrowers. - CORRECT ANSWERS Limits for conforming loans
(The Federal Housing Finance Agency sets limits for conforming loans.)
Conventional loans from large commercial banks are the primary target for which secondary market
player? - CORRECT ANSWERS Fannie Mae
(Fannie Mae buys conventional loans, mainly from large commercial banks.)
Mutual savings banks were created to serve ______ during the mid-19th century. - CORRECT ANSWERS
Workers
(Mutual savings banks are primarily concentrated along the East Coast and were created to serve
workers during the industrial expansion of the mid-19th century.)
John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is
$350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000,
