PA REAL ESTATE STATE PORTION QUESTION
BANK 2026 STATE REALTY PRACTICES
REVIEW UPDATED A+
◉ Give legal effect to agreements bargained for electronically, as
long as they meet all other provisions of contract law.
Answer: Electronic Transaction Act enacted in January 2000
◉ Mortgage bankers and mortgage brokers must be licensed and
conduct business in accordance with the Mortgage Bankers and
Brokers Act
Answer: The Department of Banking issues these licenses and
governs the licensees' activities, with the State Real Estate
Commission also having certain limited authority when these
individuals are licensed real estate brokers and salespersons as well.
◉ Intermediary theory
Answer: A hybrid philosophy that is based on the principles of title
theory but, like the principles of lien theory, requires that the
mortgagee foreclose to obtain legal title.
◉ Prepayment
, Answer: Lenders are not permitted to charge prepayment penalties
on mortgage loans insured or guaranteed by the federal government.
In addition, Pennsylvania law does not permit prepayment penalties
on residential mortgage loans when the principal amount is $50,000
or less. Otherwise, lenders can include in the note whatever penalty
conditions they choose
◉ This program was created during the early 1980s when workers
faced the loss of their homes after losing their jobs in the demise of
the steel industry. The program provides counseling and loans to
help people pay delinquent mortgage loans. In some cases, people
may qualify for continuing monthly payment assistance for up to 24
months
Answer: Homeowner Emergency Assistance Program (HEMAP).
◉ If it appears from evidence at a hearing that the employing broker
had actual knowledge of a violation or permitted a course of dealing
that violates the law, the Commission may suspend or revoke the
employing broker's license or levy a fine.
Answer: Discipline against a broker
◉ This allows the property to be sold by court order after the
mortgagee has given sufficient public notice. This is the prevalent
type of mortgage foreclosure in Pennsylvania.
Answer: Judicial foreclosure
BANK 2026 STATE REALTY PRACTICES
REVIEW UPDATED A+
◉ Give legal effect to agreements bargained for electronically, as
long as they meet all other provisions of contract law.
Answer: Electronic Transaction Act enacted in January 2000
◉ Mortgage bankers and mortgage brokers must be licensed and
conduct business in accordance with the Mortgage Bankers and
Brokers Act
Answer: The Department of Banking issues these licenses and
governs the licensees' activities, with the State Real Estate
Commission also having certain limited authority when these
individuals are licensed real estate brokers and salespersons as well.
◉ Intermediary theory
Answer: A hybrid philosophy that is based on the principles of title
theory but, like the principles of lien theory, requires that the
mortgagee foreclose to obtain legal title.
◉ Prepayment
, Answer: Lenders are not permitted to charge prepayment penalties
on mortgage loans insured or guaranteed by the federal government.
In addition, Pennsylvania law does not permit prepayment penalties
on residential mortgage loans when the principal amount is $50,000
or less. Otherwise, lenders can include in the note whatever penalty
conditions they choose
◉ This program was created during the early 1980s when workers
faced the loss of their homes after losing their jobs in the demise of
the steel industry. The program provides counseling and loans to
help people pay delinquent mortgage loans. In some cases, people
may qualify for continuing monthly payment assistance for up to 24
months
Answer: Homeowner Emergency Assistance Program (HEMAP).
◉ If it appears from evidence at a hearing that the employing broker
had actual knowledge of a violation or permitted a course of dealing
that violates the law, the Commission may suspend or revoke the
employing broker's license or levy a fine.
Answer: Discipline against a broker
◉ This allows the property to be sold by court order after the
mortgagee has given sufficient public notice. This is the prevalent
type of mortgage foreclosure in Pennsylvania.
Answer: Judicial foreclosure
