CA REAL ESTATE FINANCE COURSE
EXAM QUESTIONS AND ANSWERS
When does the mort insurance requirement requirement end for a borrower with a VA loan?
✅✅ANSW-There is no mortgage insurance req. for a VA loan
Bobby is completing a residential loan app. On the app, he lists his liabilities. What are liabilities?
✅✅ANSW-Obligations the borrower owes
What type of loans issued in CA may be protected from a deficiency judgement? ✅✅ANSW-
Second mort. issued in Aug13 to purchase a single family home
____ is a legal action that liquidates or restructures debt. It can have a long-lasting negative impact
on the borrower's ability to obtain financing. ✅✅ANSW-Bankruptcy
Who typically performs an appraisal? ✅✅ANSW-Certified appraiser
Tyler is a developer who renovates a long-abandoned warehouse in a low-income neighborhood into
a community center, complete with space for after-school programs, a daycare, and a gym. Tyler is
able to complete the reno with a loan funded by a local bank. Which act req financial institutions to
make credit available for this type of development? ✅✅ANSW-Community Reinvestment Act
One of these actions is considered an MLO activity. Which one? ✅✅ANSW-Presenting a revised
loan offer to the consumer after they requested a lower rate.
An increase in ppt value is ____. ✅✅ANSW-Appreciation
What is a potential concern of a buyer who's entering into a contact for deed with a seller?
✅✅ANSW-The buyer could lose the ppt after missing only one mort pymnt
Which RE finance instrument includes the promise to repay and the security instrument within the
same document? ✅✅ANSW-Contract for deed
, What are ppt taxes in a mort pymnt? ✅✅ANSW-The cost of public services divided by the
assessment for the ppt
An ARM usually offers an initial interest rate that's ___ a fixed rate mortgage for a period of time.
✅✅ANSW-Lower than
Tina is purchasing a home that appraised for $10k more than the sales price. On which figure will the
lender base the loan-to-value ratio? ✅✅ANSW-It will be based on the sales price | lenders use
the lesser price to determine the LTV
Wendy has been approved for her first mort. The lender advertised a 4.6% interest rate. She's
nervous about the terms and fees. What info is the lender required to provide? ✅✅ANSW-
Payment schedule, APR, finance charges, pre-pymnt penalties, late penalties, and total financed
amount
Stacey's lengthy military service makes her uniquely eligible for a(n) ____. ✅✅ANSW-VA loan
Ronald marries and wants to start a family. Which of the following would be important in his
selection of an insurance carrier? ✅✅ANSW-Premiums and deductibles
Rick finds that some of his ongoing expenses as a licensee are paid monthly, some quarterly, and
some annually. How can he arrive at a standard monthly figure that will help him manage his cash
flow? ✅✅ANSW-Estimate total annual expenses and divide by 12 for a monthly amount
Cassie is helping her buyer client, Gus. As they discuss preparations for closing, she cautions Gus,
"make sure you review the Closing Disclosure as soon as you receive it and ____" ✅✅ANSW-
Contact your lender immediately if you find errors or have any questions.
The Farm-Credit System is _____. ✅✅ANSW-Government-sponsored enterprise
How should you analyze data obtained from tracking your personal spending? ✅✅ANSW-Assign
categories to all items and look for trends
EXAM QUESTIONS AND ANSWERS
When does the mort insurance requirement requirement end for a borrower with a VA loan?
✅✅ANSW-There is no mortgage insurance req. for a VA loan
Bobby is completing a residential loan app. On the app, he lists his liabilities. What are liabilities?
✅✅ANSW-Obligations the borrower owes
What type of loans issued in CA may be protected from a deficiency judgement? ✅✅ANSW-
Second mort. issued in Aug13 to purchase a single family home
____ is a legal action that liquidates or restructures debt. It can have a long-lasting negative impact
on the borrower's ability to obtain financing. ✅✅ANSW-Bankruptcy
Who typically performs an appraisal? ✅✅ANSW-Certified appraiser
Tyler is a developer who renovates a long-abandoned warehouse in a low-income neighborhood into
a community center, complete with space for after-school programs, a daycare, and a gym. Tyler is
able to complete the reno with a loan funded by a local bank. Which act req financial institutions to
make credit available for this type of development? ✅✅ANSW-Community Reinvestment Act
One of these actions is considered an MLO activity. Which one? ✅✅ANSW-Presenting a revised
loan offer to the consumer after they requested a lower rate.
An increase in ppt value is ____. ✅✅ANSW-Appreciation
What is a potential concern of a buyer who's entering into a contact for deed with a seller?
✅✅ANSW-The buyer could lose the ppt after missing only one mort pymnt
Which RE finance instrument includes the promise to repay and the security instrument within the
same document? ✅✅ANSW-Contract for deed
, What are ppt taxes in a mort pymnt? ✅✅ANSW-The cost of public services divided by the
assessment for the ppt
An ARM usually offers an initial interest rate that's ___ a fixed rate mortgage for a period of time.
✅✅ANSW-Lower than
Tina is purchasing a home that appraised for $10k more than the sales price. On which figure will the
lender base the loan-to-value ratio? ✅✅ANSW-It will be based on the sales price | lenders use
the lesser price to determine the LTV
Wendy has been approved for her first mort. The lender advertised a 4.6% interest rate. She's
nervous about the terms and fees. What info is the lender required to provide? ✅✅ANSW-
Payment schedule, APR, finance charges, pre-pymnt penalties, late penalties, and total financed
amount
Stacey's lengthy military service makes her uniquely eligible for a(n) ____. ✅✅ANSW-VA loan
Ronald marries and wants to start a family. Which of the following would be important in his
selection of an insurance carrier? ✅✅ANSW-Premiums and deductibles
Rick finds that some of his ongoing expenses as a licensee are paid monthly, some quarterly, and
some annually. How can he arrive at a standard monthly figure that will help him manage his cash
flow? ✅✅ANSW-Estimate total annual expenses and divide by 12 for a monthly amount
Cassie is helping her buyer client, Gus. As they discuss preparations for closing, she cautions Gus,
"make sure you review the Closing Disclosure as soon as you receive it and ____" ✅✅ANSW-
Contact your lender immediately if you find errors or have any questions.
The Farm-Credit System is _____. ✅✅ANSW-Government-sponsored enterprise
How should you analyze data obtained from tracking your personal spending? ✅✅ANSW-Assign
categories to all items and look for trends
