REAL ESTATE FINANCE FINAL EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. HUD created the FHA ____________________ program to help lenders meet the high demand for FHA
backed financing.
A) Automatic endorsement
B) Low doc endorsement
C) Direct endorsement
D) No such program exists
Answer:
C) Direct endorsement
Question:
2. ______________ typically aim to build commercial mortgage loan portfolios that are diversified by
property type and geography as well as in accordance with applicable investment guidelines.
A) Pension Funds
B) Commercial Banks
C) REITs
D) Life Insurance Companies
Answer:
D) Life Insurance Companies
Question:
3. Which is NOT a purpose of the GFE?
A) Helps the consumer compare loan offers
B) Helps the consumer understand the real cost of the loan
C) Helps the consumer choose the right appraiser
D) Helps the consumer make an informed decision about the loan choice
Answer:
C) Helps the consumer choose the right appraiser
Question:
4. This type of mortgage may or may not have "caps".
A) Graduated Mortgage
B) Buydown Mortgage
C) Subprime mortgage
D) Adjustable mortgage
Answer:
D) Adjustable mortgage
, Question:
5. The Federal Deposit Insurance Corporation (FDIC) insures deposits and other accounts up to
A) $100,000
B) $150,000
C) $200,000
D) $250,000
Answer:
D) $250,000
Question:
6. A notice attached to your property telling the world that a creditor claims you owe the creditor some
money.
A) Encumbrance
B) Lien
C) Mortgage
D) Note
Answer:
B) Lien
Question:
7. A type of real estate company modeled after mutual funds.
A) Pension Funds
B) REIT
C) Life Insurance Company
D) Credit Unions
Answer:
B) REIT
Question:
8. This act governs the process by which federal agencies develop and issue regulations.
A) APA
B) SAFE
C) Dodd-Frank
D) CFPB Next question
Answer:
A) APA
Question:
9. The interest rate the FED charges its' member banks is called:
A) Prime rate
B) Discount rate
C) Discount points
D) Interest rate
Answer:
B) Discount rate
QUESTIONS AND CORRECT ANSWERS
Question:
1. HUD created the FHA ____________________ program to help lenders meet the high demand for FHA
backed financing.
A) Automatic endorsement
B) Low doc endorsement
C) Direct endorsement
D) No such program exists
Answer:
C) Direct endorsement
Question:
2. ______________ typically aim to build commercial mortgage loan portfolios that are diversified by
property type and geography as well as in accordance with applicable investment guidelines.
A) Pension Funds
B) Commercial Banks
C) REITs
D) Life Insurance Companies
Answer:
D) Life Insurance Companies
Question:
3. Which is NOT a purpose of the GFE?
A) Helps the consumer compare loan offers
B) Helps the consumer understand the real cost of the loan
C) Helps the consumer choose the right appraiser
D) Helps the consumer make an informed decision about the loan choice
Answer:
C) Helps the consumer choose the right appraiser
Question:
4. This type of mortgage may or may not have "caps".
A) Graduated Mortgage
B) Buydown Mortgage
C) Subprime mortgage
D) Adjustable mortgage
Answer:
D) Adjustable mortgage
, Question:
5. The Federal Deposit Insurance Corporation (FDIC) insures deposits and other accounts up to
A) $100,000
B) $150,000
C) $200,000
D) $250,000
Answer:
D) $250,000
Question:
6. A notice attached to your property telling the world that a creditor claims you owe the creditor some
money.
A) Encumbrance
B) Lien
C) Mortgage
D) Note
Answer:
B) Lien
Question:
7. A type of real estate company modeled after mutual funds.
A) Pension Funds
B) REIT
C) Life Insurance Company
D) Credit Unions
Answer:
B) REIT
Question:
8. This act governs the process by which federal agencies develop and issue regulations.
A) APA
B) SAFE
C) Dodd-Frank
D) CFPB Next question
Answer:
A) APA
Question:
9. The interest rate the FED charges its' member banks is called:
A) Prime rate
B) Discount rate
C) Discount points
D) Interest rate
Answer:
B) Discount rate
