REAL ESTATE FINANCE PRACTICE
EXAM 2025 QUESTIONS AND VERIFIED
ANSWERS
A __________ is a permanent change in one or more of the terms of a borrower's
loan.
Loan Qualification
Loan Modification
Loan Approval
Loan Origination
Loan Modification
What time period must borrowers have in job history with the same employer to
qualify?
2 months
6 months
1 year
2 years
2 years
Unscrupulous actions carried out by a lender to entice, induce and/or assist a
borrower in taking a mortgage that carries high fees, a high interest rate, strips
the borrower of equity, or places the borrower in a lower credit rated loan to
benefit the lender.
Predatory lending
Sub prime Mortgage
Participation Agreement
Fraud
Predatory lending
Why do lender care about unpaid taxes?
They want to ensure your mortgage payment is not late
It makes the loan difficult to sell in the secondary market
Unpaid property taxes are a superior lien to the right of the lender
Lenders don't care about unpaid taxes
Unpaid property taxes are a superior lien to the right of the lender
A burden, obstruction, or impediment on the property that lessens its value or
makes it less marketable.
Lien
Interest
Encumbrance
Mortgage
Encumbrance
,Which party is not included on the deed of trust?
Mortgagor
Mortgagee
Trustor
Trustee
Trustor
The mortgage or deed of trust will contain ___________ that permits the lender to
demand that the entire balance of the loan be repaid if the borrower defaults.
Due on sale clause
Acceleration clause
Alienation clause
Balloon clause
Acceleration clause
One of the largest buyers of securities is _________.
Credit Unions
Pension Funds
China
American Public
Pension Funds
A company or individual that originates mortgage loans and sells them to
investors, while taking care of borrowers loan payments, records, taxes, and
insurance.
Mortgage Bankers
Mortgage Brokers
Loan Originators
Secondary Market
Mortgage Bankers
The largest buyer of residential mortgages in the United States today.
FHLMC
GNMA
Banks
FNMA
FNMA
Provides cash advances to members, including community banks, thrifts, credit
unions and community development financial institutions.
FNMA
FHLMC
FHLB
Banks
FNMA
Loan amount is $337,500. Down payment is $37,500. What is the LTV?
, 10%
11%
90%
91%
90%
The market where borrowers and mortgage originators come together to
negotiate terms and effectuate mortgage transactions.
Money market
Primary market
Secondary market
Origination market
Primary market
A collaboration among lenders to share in a loan too big to handle for any one of
them.
Participation loan
Collaboration loan
Shared loan
Co-Operation loan
Next question
Participation loan
The lender or the mortgage broker must provide a GFE within ____________ of
receiving the application or other required information.
24 hours
3 days
One business day
3 business days
3 business days
A ___________ is a form that lists basic information about the terms of a
mortgage loan for which the consumer applied.
HUD-1
Deed of Trust
Closing Statement
GFE
GFE
_____________ serves as a financial and administration resources that helps
provide essential services and affordable housing opportunities to Texans who
qualify for this assistance based on their income level.
USDA
FHA
TDHCA
CFPB
TDHCA
EXAM 2025 QUESTIONS AND VERIFIED
ANSWERS
A __________ is a permanent change in one or more of the terms of a borrower's
loan.
Loan Qualification
Loan Modification
Loan Approval
Loan Origination
Loan Modification
What time period must borrowers have in job history with the same employer to
qualify?
2 months
6 months
1 year
2 years
2 years
Unscrupulous actions carried out by a lender to entice, induce and/or assist a
borrower in taking a mortgage that carries high fees, a high interest rate, strips
the borrower of equity, or places the borrower in a lower credit rated loan to
benefit the lender.
Predatory lending
Sub prime Mortgage
Participation Agreement
Fraud
Predatory lending
Why do lender care about unpaid taxes?
They want to ensure your mortgage payment is not late
It makes the loan difficult to sell in the secondary market
Unpaid property taxes are a superior lien to the right of the lender
Lenders don't care about unpaid taxes
Unpaid property taxes are a superior lien to the right of the lender
A burden, obstruction, or impediment on the property that lessens its value or
makes it less marketable.
Lien
Interest
Encumbrance
Mortgage
Encumbrance
,Which party is not included on the deed of trust?
Mortgagor
Mortgagee
Trustor
Trustee
Trustor
The mortgage or deed of trust will contain ___________ that permits the lender to
demand that the entire balance of the loan be repaid if the borrower defaults.
Due on sale clause
Acceleration clause
Alienation clause
Balloon clause
Acceleration clause
One of the largest buyers of securities is _________.
Credit Unions
Pension Funds
China
American Public
Pension Funds
A company or individual that originates mortgage loans and sells them to
investors, while taking care of borrowers loan payments, records, taxes, and
insurance.
Mortgage Bankers
Mortgage Brokers
Loan Originators
Secondary Market
Mortgage Bankers
The largest buyer of residential mortgages in the United States today.
FHLMC
GNMA
Banks
FNMA
FNMA
Provides cash advances to members, including community banks, thrifts, credit
unions and community development financial institutions.
FNMA
FHLMC
FHLB
Banks
FNMA
Loan amount is $337,500. Down payment is $37,500. What is the LTV?
, 10%
11%
90%
91%
90%
The market where borrowers and mortgage originators come together to
negotiate terms and effectuate mortgage transactions.
Money market
Primary market
Secondary market
Origination market
Primary market
A collaboration among lenders to share in a loan too big to handle for any one of
them.
Participation loan
Collaboration loan
Shared loan
Co-Operation loan
Next question
Participation loan
The lender or the mortgage broker must provide a GFE within ____________ of
receiving the application or other required information.
24 hours
3 days
One business day
3 business days
3 business days
A ___________ is a form that lists basic information about the terms of a
mortgage loan for which the consumer applied.
HUD-1
Deed of Trust
Closing Statement
GFE
GFE
_____________ serves as a financial and administration resources that helps
provide essential services and affordable housing opportunities to Texans who
qualify for this assistance based on their income level.
USDA
FHA
TDHCA
CFPB
TDHCA
