National PSI Broker Exam Post Test
Questions and Answers Latest Updates
2025
An active real estate professional must be able to help consumers determine the
probable sales price of a real property. A broker's or salesperson's competitive market
analysis would be used for all of the following EXCEPT
A)
setting the loan value.
B)
determining the listing price.
C)
assisting sellers and buyers in determining market value.
D)
estimating the probable sales price. - Correct Answer-A)
The answer is setting the loan value. Appraisals, not competitive market analyses
(CMAs), are used to set or determine loan value. CMAs are often used to provide an
estimate of market value or a probable price. Appraisals also estimate market value.
An appraiser has been asked to determine the value of a church. The appraiser has
determined the best approach to value for this property is the cost approach. While
completing the process of determining the value, the appraiser will consider all of the
following EXCEPT
A)
reproduction cost of the subject property.
B)
value of the land under the church.
C)
adjusted square footage of the subject and comparables.
D)
current depreciation of the property improvements. - Correct Answer-c)
The answer is adjusted square footage of the subject and comparables. An appraiser
using the cost approach does not make adjustments for square footage or any other
items
,All of the following are true of FHA and VA loans EXCEPT
A)
there can be no prepayment penalty.
B)
the loan is assumable by a qualified buyer.
C)
the loan-to-value (LTV) ratio may typically be higher than that of conventional loans.
D)
an appraisal is not required. - Correct Answer-D)
The answer is an appraisal is not required. FHA and VA loans require no prepayment
penalty. The loans are assumable by qualified buyers, and the LTV ratio is usually
allowed to be higher than on conventional loans. Like all federal loans, an appraisal is
required for FHA and VA loans.
A state statute has set the maximum interest rate allowed on loans originated within the
state. This type of law is known as
A)
discount points.
B)
usury law.
C)
nominal interest rate.
D)
statute of limitations. - Correct Answer-b)
The answer is usury law. Discount points are paid to increase a lender's yield. The
nominal interest rate is the note rate without other charges. The statute of limitations set
the amount of time lawsuits can be filed.
A borrower has applied for a loan and has been told the funds will be held because
there is a three-day right of rescission. Which of the following loans would have such a
three-day right of rescission?
A)
Home purchase first position
B)
Home equity loan
C)
Purchase of a vacation home
D)
Construction loan for a new home - Correct Answer-B)
The answer is home equity loan. The Truth in Lending Act gives borrowers of home
improvement loans three days to rescind the loan. This is not available for any purchase
or construction loans for homes.
,A buyer is getting a new loan with a 95% loan-to-value (LTV) ratio. The full amount of
money for the new loan that the lender will be able to provide the buyer will be
determined by the
A)
lower of the sales price or appraised value.
B)
sales price only.
C)
appraised value only.
D)
higher of the sales price or appraised value. - Correct Answer-A)
The answer is lower of the sales price or appraised value. LTV is determined by the
lower of the sales price or appraised value.
A borrower is looking for a loan with a low down payment and does not mind if the loan
has a large balloon at payoff. The type of loan that would MOST likely meet this
borrower's criteria is
A)
partially amortized.
B)
adjustable rate.
C)
term.
D)
fully amortized. - Correct Answer-C)
The answer is term. Term, or straight, loans are interest only. These loans have no
payment of principal; therefore, they will have the highest balloon payment at the end.
Which of the following does the federal RESPA law require the lender to provide to all
loan applicants within three days of application?
A)
HUD-1 settlement form
B)
Good-faith estimate of all closing costs
C)
Truth-in-lending statement
D)
Notice of the three-day rescission right - Correct Answer-B)
The answer is good-faith estimate of all closing costs. RESPA requires the lender to
provide the borrower with a good-faith estimate at the time of loan application or within
three days after application. The HUD-1 statement must be provided to the parties at
closing. A different federal law requires the truth-in-lending statement and a three-day
, rescission right.
A borrower is in default on his home loan and has offered to give the lender a deed in
lieu of foreclosure. The lender declined the borrower's offer. This is MOST likely
because
A)
the loan to value is too high.
B)
there is a junior or secondary lien.
C)
it will take more time and cost more than foreclosing on the property.
D)
the lender would not get possession or title upon transfer. - Correct Answer-B)
The answer is there is a junior or secondary lien. The foreclosure process gives all
secondary liens the right to redeem, buy out the first, or lose their lien rights. Taking a
deed (in lieu of foreclosure) with junior liens would leave these debts in place.
Ann has a contract with Ben in which she must perform if Ben decides to go forward.
This is what type of contract?
A)
Unilateral for Ben
B)
Bilateral for both
C)
Unilateral for Ann
D)
Nonbinding - Correct Answer-C)
The answer is unilateral for Ann. Ann has to perform if Ben takes action by going
forward. This makes the contract unilateral for Ann.
A buyer and a seller have been through several counteroffers on a property and finally
reached an agreement that was accepted by all parties. During this stage of the process
when the contract has yet to be performed, the status of the contract is
A)
executory.
B)
executed.
C)
voidable.
D)
unilateral. - Correct Answer-A)
The answer is executory. Executory contracts have not been completed (executed).
Questions and Answers Latest Updates
2025
An active real estate professional must be able to help consumers determine the
probable sales price of a real property. A broker's or salesperson's competitive market
analysis would be used for all of the following EXCEPT
A)
setting the loan value.
B)
determining the listing price.
C)
assisting sellers and buyers in determining market value.
D)
estimating the probable sales price. - Correct Answer-A)
The answer is setting the loan value. Appraisals, not competitive market analyses
(CMAs), are used to set or determine loan value. CMAs are often used to provide an
estimate of market value or a probable price. Appraisals also estimate market value.
An appraiser has been asked to determine the value of a church. The appraiser has
determined the best approach to value for this property is the cost approach. While
completing the process of determining the value, the appraiser will consider all of the
following EXCEPT
A)
reproduction cost of the subject property.
B)
value of the land under the church.
C)
adjusted square footage of the subject and comparables.
D)
current depreciation of the property improvements. - Correct Answer-c)
The answer is adjusted square footage of the subject and comparables. An appraiser
using the cost approach does not make adjustments for square footage or any other
items
,All of the following are true of FHA and VA loans EXCEPT
A)
there can be no prepayment penalty.
B)
the loan is assumable by a qualified buyer.
C)
the loan-to-value (LTV) ratio may typically be higher than that of conventional loans.
D)
an appraisal is not required. - Correct Answer-D)
The answer is an appraisal is not required. FHA and VA loans require no prepayment
penalty. The loans are assumable by qualified buyers, and the LTV ratio is usually
allowed to be higher than on conventional loans. Like all federal loans, an appraisal is
required for FHA and VA loans.
A state statute has set the maximum interest rate allowed on loans originated within the
state. This type of law is known as
A)
discount points.
B)
usury law.
C)
nominal interest rate.
D)
statute of limitations. - Correct Answer-b)
The answer is usury law. Discount points are paid to increase a lender's yield. The
nominal interest rate is the note rate without other charges. The statute of limitations set
the amount of time lawsuits can be filed.
A borrower has applied for a loan and has been told the funds will be held because
there is a three-day right of rescission. Which of the following loans would have such a
three-day right of rescission?
A)
Home purchase first position
B)
Home equity loan
C)
Purchase of a vacation home
D)
Construction loan for a new home - Correct Answer-B)
The answer is home equity loan. The Truth in Lending Act gives borrowers of home
improvement loans three days to rescind the loan. This is not available for any purchase
or construction loans for homes.
,A buyer is getting a new loan with a 95% loan-to-value (LTV) ratio. The full amount of
money for the new loan that the lender will be able to provide the buyer will be
determined by the
A)
lower of the sales price or appraised value.
B)
sales price only.
C)
appraised value only.
D)
higher of the sales price or appraised value. - Correct Answer-A)
The answer is lower of the sales price or appraised value. LTV is determined by the
lower of the sales price or appraised value.
A borrower is looking for a loan with a low down payment and does not mind if the loan
has a large balloon at payoff. The type of loan that would MOST likely meet this
borrower's criteria is
A)
partially amortized.
B)
adjustable rate.
C)
term.
D)
fully amortized. - Correct Answer-C)
The answer is term. Term, or straight, loans are interest only. These loans have no
payment of principal; therefore, they will have the highest balloon payment at the end.
Which of the following does the federal RESPA law require the lender to provide to all
loan applicants within three days of application?
A)
HUD-1 settlement form
B)
Good-faith estimate of all closing costs
C)
Truth-in-lending statement
D)
Notice of the three-day rescission right - Correct Answer-B)
The answer is good-faith estimate of all closing costs. RESPA requires the lender to
provide the borrower with a good-faith estimate at the time of loan application or within
three days after application. The HUD-1 statement must be provided to the parties at
closing. A different federal law requires the truth-in-lending statement and a three-day
, rescission right.
A borrower is in default on his home loan and has offered to give the lender a deed in
lieu of foreclosure. The lender declined the borrower's offer. This is MOST likely
because
A)
the loan to value is too high.
B)
there is a junior or secondary lien.
C)
it will take more time and cost more than foreclosing on the property.
D)
the lender would not get possession or title upon transfer. - Correct Answer-B)
The answer is there is a junior or secondary lien. The foreclosure process gives all
secondary liens the right to redeem, buy out the first, or lose their lien rights. Taking a
deed (in lieu of foreclosure) with junior liens would leave these debts in place.
Ann has a contract with Ben in which she must perform if Ben decides to go forward.
This is what type of contract?
A)
Unilateral for Ben
B)
Bilateral for both
C)
Unilateral for Ann
D)
Nonbinding - Correct Answer-C)
The answer is unilateral for Ann. Ann has to perform if Ben takes action by going
forward. This makes the contract unilateral for Ann.
A buyer and a seller have been through several counteroffers on a property and finally
reached an agreement that was accepted by all parties. During this stage of the process
when the contract has yet to be performed, the status of the contract is
A)
executory.
B)
executed.
C)
voidable.
D)
unilateral. - Correct Answer-A)
The answer is executory. Executory contracts have not been completed (executed).
