CPC Practice Exam 3 UPDATED ACTUAL Exam
Questions and CORRECT Answers100%
$3,200 (divide 400,000 by 80%) - A buyer is purchasing a property for $400,000. His loan-
to-value ratio is 80%. The lender also charges a 1% loan origination fee. How much is the loan
origination fee?
Financial responsibility - MLO applicants give permission for a credit report to be pulled
so the NMLS can evaluate whether the applicant demonstrates ______.
Assesed value - What type of value is of interest to taxing authorities?
A calculation that describes the amount being borrowed compared to the value of a property -
Which of the following describes loan-to-value ratio?
They increased market speculation - What role did CMOs play in the financial crisis of
2007?
Ginnie Mae - Which of these HUD programs allows mortgage lenders to obtain a better
price for their mortgage loans in the secondary mortgage market?
Freddie Mac - Which of these agencies is a government-sponsored enterprise (GSE)?
, Specific - A goal written according to the SMART criteria is ______.
Maybe, but they'll have to petition their lender - The Bransons have a conventional loan
for which they were required to obtain private mortgage insurance. Their local real estate
market has been going like gangbusters, and their house is now appraised at twice their loan
balance! Will their PMI be automatically cancelled?
The largest percentage possible after paying all essential expenses. - The percentage
recommended for a licensee to allocate when building an emergency fund is ______.
Late charge - What type of provision is standard with either the mortgage or the deed of
trust, but is included in the promissory note rather than the security instrument?
$315,789
In order to calculate this, start with 100% minus a 5% commission, which is 95% or .95. Take
$300,000 and divide this amount by .95. - A seller wants to break even after the broker's
commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?
Research typical expenses for a licensee through the Internet and by asking colleagues. -
Natasha is a new licensee who needs to estimate her business expenses. Which of these
is a recommended way for Natasha to do this?
$6,750
The buyer is financing $450,000. Multiply this amount by 1.5% (or 0.015) to get $6,750.
Question 65 of 150 - A buyer is purchasing a property for $500,000. He has a down
payment of $50,000 and is financing the rest. What's the amount of the loan origination fee if
the lender charges 1.5%?
Questions and CORRECT Answers100%
$3,200 (divide 400,000 by 80%) - A buyer is purchasing a property for $400,000. His loan-
to-value ratio is 80%. The lender also charges a 1% loan origination fee. How much is the loan
origination fee?
Financial responsibility - MLO applicants give permission for a credit report to be pulled
so the NMLS can evaluate whether the applicant demonstrates ______.
Assesed value - What type of value is of interest to taxing authorities?
A calculation that describes the amount being borrowed compared to the value of a property -
Which of the following describes loan-to-value ratio?
They increased market speculation - What role did CMOs play in the financial crisis of
2007?
Ginnie Mae - Which of these HUD programs allows mortgage lenders to obtain a better
price for their mortgage loans in the secondary mortgage market?
Freddie Mac - Which of these agencies is a government-sponsored enterprise (GSE)?
, Specific - A goal written according to the SMART criteria is ______.
Maybe, but they'll have to petition their lender - The Bransons have a conventional loan
for which they were required to obtain private mortgage insurance. Their local real estate
market has been going like gangbusters, and their house is now appraised at twice their loan
balance! Will their PMI be automatically cancelled?
The largest percentage possible after paying all essential expenses. - The percentage
recommended for a licensee to allocate when building an emergency fund is ______.
Late charge - What type of provision is standard with either the mortgage or the deed of
trust, but is included in the promissory note rather than the security instrument?
$315,789
In order to calculate this, start with 100% minus a 5% commission, which is 95% or .95. Take
$300,000 and divide this amount by .95. - A seller wants to break even after the broker's
commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?
Research typical expenses for a licensee through the Internet and by asking colleagues. -
Natasha is a new licensee who needs to estimate her business expenses. Which of these
is a recommended way for Natasha to do this?
$6,750
The buyer is financing $450,000. Multiply this amount by 1.5% (or 0.015) to get $6,750.
Question 65 of 150 - A buyer is purchasing a property for $500,000. He has a down
payment of $50,000 and is financing the rest. What's the amount of the loan origination fee if
the lender charges 1.5%?
