Texas Real Estate Finance Practice Exam Questions with Accurate Answers

Which of the following default types would be considered a technical default? - ANSWER-failure to keep property in good repair Which Texas agency licenses, regulates, and examines the trust- and insurance-funded prepaid funeral contract sellers? - ANSWER-TExas department of banking The Tax Reform Act of 1986 established an entity that can issue multiclass securities. What is this entity called? - ANSWER-REMIC What is the main advantage of a single-family home investment over other real estate investments? - ANSWER-liquidity Who is the person who grants approval for the loan, rejects the loan, or in some cases, agrees to approve the loan if certain conditions are met? - ANSWER-underwriter Which of the following statements is not true about a note? - ANSWER-a note must be tied to a mortgage to be legal What percent of the REIT's assets must be made up of cash, real estate, mortgage notes, or government securities? - ANSWER-75 Mary is getting a $120,000 loan at 6.5 percent and will pay 3 discount points. What will the effective interest rate be? - ANSWER-.06875 How is the payoff of a construction loan normally accomplished? - ANSWER-with a takeout loan Which type of property is most benefited by the income capitalization approach to estimating value? - ANSWER-apartment building