CA Real Estate Finance Course (Practice Exam) :
Questions With In-depth Solutions
Which type of real estate investment trust involves both residential and
commercial properties? Right Ans - Mortgage REIT
George has a lot of outstanding debt on three different credit cards. As he
considers his financial goals, what should be at the top of his list? Right Ans
- Paying off his credit cards and keeping them paid off each month
The amount of the ______ a veteran must pay depends on factors such as
military status, down payment amount, and whether the veteran's entitlement
is being used for the first time or a subsequent time Right Ans - funding fee
Which institution guarantees mortgage-backed securities with the full faith
and credit of the United States? Right Ans - Ginnie Mae
Which of these actions is an MLO violation? Right Ans - Performing MLO
activities before obtaining an endorsement
Which of the following is a true statement about the Hardest Hit Fund?
Right Ans - It was available in the states with the most underwater
homeowners.
The FHA Section 203(h) program assists ______ with an insured mortgage.
Right Ans - Victims of a presidentially declared disaster
Which of the following is true about mortgage brokers? Right Ans - They
don't service the loan beyond placement.
How and when does a contractor performing work associated with a 203(k)
loan receive funds from the lender? Right Ans - Half is received up front
and the other half after the work is completed and approved
Page four of the Closing Disclosure includes consumer education about ______.
Right Ans - The use of an escrow account
, In calculating PITI for a mortgage payment, the annual taxes and insurance
are divided by ______ and are added to the monthly principal and interest
payment to make up the total monthly payment. Right Ans - 12
The Davidsons' lender is trying to approve them for a conventional loan. What
is the minimum percentage of total debt ratio they must have to be eligible a
conventional loan? Right Ans - 36%
The purpose of evaluating spending habits is ______. Right Ans - To see
where those habits do or don't align with personal values
Pattie is the widow of Oscar, a member of the Army who was killed in action.
When she uses the VA loan to buy her first home, what percentage of her loan
amount will be charged as a funding fee? Right Ans - 0%
Payment history, credit usage, inquiries, and types of accounts are factors
considered in calculating a credit score. Which of the following options is also
a factor? Right Ans - Age of accounts
The ______ was a response to the practice of redlining and was enacted in 1977.
Right Ans - Community Reinvestment Act
What is the name of the federal act that sets requirements for mortgage loan
originators (MLOs)? Right Ans - Secure and Fair Enforcement for Mortgage
Licensing Act
Buyers Romy and Steven are looking over closing documents and don't know
if the Loan Estimate matches everything on the Closing Disclosure. Usually,
amounts shown on the Closing Disclosure that don't exactly match the figures
on the Loan Estimate will be due to _______. Right Ans - Updates to reflect
the terms of the borrower's legal obligation when the loan closes
Farm and Country Bank provides credit to the farmers, ranchers, and other
rural residents of its community. What government program helps the bank
maintain enough capital to fund those loans? Right Ans - Farmer Mac
When a buyer uses an FHA loan, the down payment amount is calculated
______. Right Ans - On the lesser of the sales price or the appraised value of
the property
Questions With In-depth Solutions
Which type of real estate investment trust involves both residential and
commercial properties? Right Ans - Mortgage REIT
George has a lot of outstanding debt on three different credit cards. As he
considers his financial goals, what should be at the top of his list? Right Ans
- Paying off his credit cards and keeping them paid off each month
The amount of the ______ a veteran must pay depends on factors such as
military status, down payment amount, and whether the veteran's entitlement
is being used for the first time or a subsequent time Right Ans - funding fee
Which institution guarantees mortgage-backed securities with the full faith
and credit of the United States? Right Ans - Ginnie Mae
Which of these actions is an MLO violation? Right Ans - Performing MLO
activities before obtaining an endorsement
Which of the following is a true statement about the Hardest Hit Fund?
Right Ans - It was available in the states with the most underwater
homeowners.
The FHA Section 203(h) program assists ______ with an insured mortgage.
Right Ans - Victims of a presidentially declared disaster
Which of the following is true about mortgage brokers? Right Ans - They
don't service the loan beyond placement.
How and when does a contractor performing work associated with a 203(k)
loan receive funds from the lender? Right Ans - Half is received up front
and the other half after the work is completed and approved
Page four of the Closing Disclosure includes consumer education about ______.
Right Ans - The use of an escrow account
, In calculating PITI for a mortgage payment, the annual taxes and insurance
are divided by ______ and are added to the monthly principal and interest
payment to make up the total monthly payment. Right Ans - 12
The Davidsons' lender is trying to approve them for a conventional loan. What
is the minimum percentage of total debt ratio they must have to be eligible a
conventional loan? Right Ans - 36%
The purpose of evaluating spending habits is ______. Right Ans - To see
where those habits do or don't align with personal values
Pattie is the widow of Oscar, a member of the Army who was killed in action.
When she uses the VA loan to buy her first home, what percentage of her loan
amount will be charged as a funding fee? Right Ans - 0%
Payment history, credit usage, inquiries, and types of accounts are factors
considered in calculating a credit score. Which of the following options is also
a factor? Right Ans - Age of accounts
The ______ was a response to the practice of redlining and was enacted in 1977.
Right Ans - Community Reinvestment Act
What is the name of the federal act that sets requirements for mortgage loan
originators (MLOs)? Right Ans - Secure and Fair Enforcement for Mortgage
Licensing Act
Buyers Romy and Steven are looking over closing documents and don't know
if the Loan Estimate matches everything on the Closing Disclosure. Usually,
amounts shown on the Closing Disclosure that don't exactly match the figures
on the Loan Estimate will be due to _______. Right Ans - Updates to reflect
the terms of the borrower's legal obligation when the loan closes
Farm and Country Bank provides credit to the farmers, ranchers, and other
rural residents of its community. What government program helps the bank
maintain enough capital to fund those loans? Right Ans - Farmer Mac
When a buyer uses an FHA loan, the down payment amount is calculated
______. Right Ans - On the lesser of the sales price or the appraised value of
the property
