REAL ESTATE FINANCE PRACTICE EXAM QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|GRADED A+

REAL ESTATE FINANCE PRACTICE EXAM
QUESTIONS AND 100% CORRECT
ANSWERS|LATEST 2025/2026|GRADED A+

A __________ is a permanent change in one or more of the terms of a borrower's loan.
B B B B B B B B B B B B B B B B




B Loan Qualification
B




B Loan ModificationB




B Loan Approval B




B Loan Origination - ANSWER
B B B Loan Modification
B




What time period must borrowers have in job history with the same employer to qualify?
B B B B B B B B B B B B B B




B 2 months
B




B 6 months
B




B 1 year
B




B 2 years - ANSWER
B B B 2 years
B




Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower in taki
B B B B B B B B B B B B B B B



ng a mortgage that carries high fees, a high interest rate, strips the borrower of equity, or plac
B B B B B B B B B B B B B B B B B



es the borrower in a lower credit rated loan to benefit the lender.
B B B B B B B B B B B B




B Predatory lending B




B Sub prime Mortgage
B B




B Participation Agreement B




B Fraud - ANSWER B B Predatory lending B




Why do lender care about unpaid taxes?
B B B B B B




1
Wicky

,B They want to ensure your mortgage payment is not late
B B B B B B B B B




B It makes the loan difficult to sell in the secondary market
B B B B B B B B B B




B Unpaid property taxes are a superior lien to the right of the lender
B B B B B B B B B B B B




B Lenders don't care about unpaid taxes -
B B B B B B



B ANSWER Unpaid property taxes are a superior lien to the right of the lender
B B B B B B B B B B B B




A burden, obstruction, or impediment on the property that lessens its value or makes it less m
B B B B B B B B B B B B B B B B



arketable.

B Lien

B Interest

B Encumbrance

B Mortgage - ANSWER B B Encumbrance



Which party is not included on the deed of trust?
B B B B B B B B B




B Mortgagor

B Mortgagee

B Trustor

B Trustee - ANSWER B B Trustor



The mortgage or deed of trust will contain ___________ that permits the lender to demand th
B B B B B B B B B B B B B B B



at the entire balance of the loan be repaid if the borrower defaults.
B B B B B B B B B B B B




B Due on sale clause
B B B




B Acceleration clause B




B Alienation clause B




B Balloon clause - ANSWER B B B Acceleration clause B




One of the largest buyers of securities is _________.
B B B B B B B B




2
Wicky

, B Credit Unions B




B Pension Funds B




B China

B American Public - ANSWER B B B Pension Funds B




A company or individual that originates mortgage loans and sells them to investors, while taki
B B B B B B B B B B B B B B



ng care of borrowers loan payments, records, taxes, and insurance.
B B B B B B B B B




B Mortgage Bankers B




B Mortgage Brokers B




B Loan OriginatorsB




B Secondary Market - ANSWER B B B Mortgage Bankers B




The largest buyer of residential mortgages in the United States today.
B B B B B B B B B B




B FHLMC

B GNMA

B Banks

B FNMA - ANSWER B B FNMA



Provides cash advances to members, including community banks, thrifts, credit unions and co
B B B B B B B B B B B B



mmunity development financial institutions.
B B B




B FNMA

B FHLMC

B FHLB

B Banks - ANSWER B B FNMA



Loan amount is $337,500. Down payment is $37,500. What is the LTV?
B B B B B B B B B B B




3
Wicky