Real Estate State Exam for Ohio Questions & Answers 2023-24
Fiscal Policy - ANSWER-Treasury Department
Monetary Policy - ANSWER-Federal Reserve Bond
Truth In Lending Act - ANSWER-To provide standard disclosure procedures that all lenders must follow. Required so consumers will know exactly what they are paying for credit so they can compare
Annual Percentage Rate (APR) - ANSWER-The relationship between the cost of borrowing money and the
total amount financed, represented by a percentage
Usury Lending Law - ANSWER-Charging an interest rate that exceeds the legal limit (set by state)
Regulation Z - ANSWER-regulates the disclosures concerning all finance charges and related aspects of credit transactions
Disclosures in TILA (Trigger Terms) - ANSWER-1. amount of down payment 2. amount of the payments 3. number of payments 4. period of repayment 5. amount of finance charge
Equal Credit Opportunity Act - ANSWER-Federal law prohibiting discrimination in granting credit to people based on: sex, marital status, color, national origin, receipt of public assistance, age, race, religion, and wage garnishment Real Estate Settlement Procedures Act (RESPA) - ANSWER-Federal law that sets forth specific procedures and guidelines for disclosure of all settlement costs in a credit transaction for 1 to 4 family residential properties
TRID - TILA, RESPA, integrated disclosure - ANSWER-Laws call for disclosure of all settlement costs, using standardized settlement statements given to borrowers
Qualified Mortgage - ANSWER-loans made will be reviewed by the lender and the buyer must have the ability to repay the loan without risky features such as interest only period or a lump sum at the end of the loan term or any loan made for longer than 30 years
Affiliated business arrangement disclosure (AfBA) - ANSWER-Required whenever a settlement service provider involved in a RESPA/TRID covered transaction refers the consumer to a provider with whom they have an ownership or other beneficial interest
Promissory Note - ANSWER-The lender gives a loan to the borrower
Lien on property - ANSWER-The borrower gives a mortgage to the lender
Alienation Clause - ANSWER-When a buyer sells the property, the mortgage must be cancelled and the remaining balance of the loan must be paid back to the lender
Acceleration Clause - ANSWER-When a buyer defaults on a loan, this gives the lender the right to declare
the entire balance of the loan to be paid back immediately
Assumption Clause - ANSWER-One party agrees to take over payments of another parties debt, with the terms of the note remaining the same
Release Clause - ANSWER-The new buyer needs to be approved by the lender holding the note and lender must release the original debtor of any liability
Prepayment Clause - ANSWER-A contract clause that gives the lender the right to charge the borrower a penalty for paying off a loan early
Fiscal Policy - ANSWER-Treasury Department
Monetary Policy - ANSWER-Federal Reserve Bond
Truth In Lending Act - ANSWER-To provide standard disclosure procedures that all lenders must follow. Required so consumers will know exactly what they are paying for credit so they can compare
Annual Percentage Rate (APR) - ANSWER-The relationship between the cost of borrowing money and the
total amount financed, represented by a percentage
Usury Lending Law - ANSWER-Charging an interest rate that exceeds the legal limit (set by state)
Regulation Z - ANSWER-regulates the disclosures concerning all finance charges and related aspects of credit transactions
Disclosures in TILA (Trigger Terms) - ANSWER-1. amount of down payment 2. amount of the payments 3. number of payments 4. period of repayment 5. amount of finance charge
Equal Credit Opportunity Act - ANSWER-Federal law prohibiting discrimination in granting credit to people based on: sex, marital status, color, national origin, receipt of public assistance, age, race, religion, and wage garnishment Real Estate Settlement Procedures Act (RESPA) - ANSWER-Federal law that sets forth specific procedures and guidelines for disclosure of all settlement costs in a credit transaction for 1 to 4 family residential properties
TRID - TILA, RESPA, integrated disclosure - ANSWER-Laws call for disclosure of all settlement costs, using standardized settlement statements given to borrowers
Qualified Mortgage - ANSWER-loans made will be reviewed by the lender and the buyer must have the ability to repay the loan without risky features such as interest only period or a lump sum at the end of the loan term or any loan made for longer than 30 years
Affiliated business arrangement disclosure (AfBA) - ANSWER-Required whenever a settlement service provider involved in a RESPA/TRID covered transaction refers the consumer to a provider with whom they have an ownership or other beneficial interest
Promissory Note - ANSWER-The lender gives a loan to the borrower
Lien on property - ANSWER-The borrower gives a mortgage to the lender
Alienation Clause - ANSWER-When a buyer sells the property, the mortgage must be cancelled and the remaining balance of the loan must be paid back to the lender
Acceleration Clause - ANSWER-When a buyer defaults on a loan, this gives the lender the right to declare
the entire balance of the loan to be paid back immediately
Assumption Clause - ANSWER-One party agrees to take over payments of another parties debt, with the terms of the note remaining the same
Release Clause - ANSWER-The new buyer needs to be approved by the lender holding the note and lender must release the original debtor of any liability
Prepayment Clause - ANSWER-A contract clause that gives the lender the right to charge the borrower a penalty for paying off a loan early
