REE 3043 COMPREHENSIVE EXAM UPDATED QUESTIONS
AND SOLUTIONS GRADED A+
✔✔The Real Estate Settlement Procedures Act does which of these: - ✔✔All of these
statements are correct.
( Requires that the borrower be able to inspect the closing statement a day before the
actual closing. Prohibits kickbacks between vendors of closing-related services and
lenders. Requires that a borrower receive a good faith estimate of closing costs shortly
after a loan application.Requires the use of a standard settlement statement for a
mortgage loan closing.)
✔✔A type of loan that has grown in volume in recent years, which has raised concerns
about predatory lending practices, is the: - ✔✔sub-prime mortgage.
✔✔With what type of loan security arrangement is the deed held by a neutral party and
returned upon payment of the mortgage in full? - ✔✔Deed of trust.
✔✔Bob lost his job and has been consistently late paying his bills. The bank recognizes
a deterioration in Bob's credit score and has notified him that he must pay his home
equity line of credit in full. The mortgage clause that makes this possible is the: -
✔✔demand clause.
✔✔The two elements of a mortgage loan include: - ✔✔The note which describes the
exact terms of the financial obligation and the mortgage which pledges the property as
security for the note.
✔✔Which of the following is least correct regarding the benefits of mortgage finance? -
✔✔Homeowners can obtain credit on lesser terms than consumer debt (home equity
credit lines which are taxed unfavorably, shorter term and at a higher interest rate).
✔✔Consider a homeowner in mortgage distress who owes more than the value of the
home, and is unable to make the loan manageable by refinancing or modifying the
mortgage. One recourse, referred to as a ______________ ______________, entails
the owner obtaining a contractual offer from a buyer, which is acceptable by the lender,
thus enabling the seller to be relieved of some or all of the outstanding balance on the
mortgage without foreclosure. - ✔✔Short Sale
✔✔The element of an adjustable interest rate that is the "moving part" is the: - ✔✔index.
✔✔A lender offers a mortgage loan consisting of 12 years of payments followed by an
additional large payment of principal with the last scheduled payment. This is
characteristic of: - ✔✔a partially amortizing loan.
✔✔The "mark-up" that a lender adds to the index rate is referred to as the: - ✔✔margin.
AND SOLUTIONS GRADED A+
✔✔The Real Estate Settlement Procedures Act does which of these: - ✔✔All of these
statements are correct.
( Requires that the borrower be able to inspect the closing statement a day before the
actual closing. Prohibits kickbacks between vendors of closing-related services and
lenders. Requires that a borrower receive a good faith estimate of closing costs shortly
after a loan application.Requires the use of a standard settlement statement for a
mortgage loan closing.)
✔✔A type of loan that has grown in volume in recent years, which has raised concerns
about predatory lending practices, is the: - ✔✔sub-prime mortgage.
✔✔With what type of loan security arrangement is the deed held by a neutral party and
returned upon payment of the mortgage in full? - ✔✔Deed of trust.
✔✔Bob lost his job and has been consistently late paying his bills. The bank recognizes
a deterioration in Bob's credit score and has notified him that he must pay his home
equity line of credit in full. The mortgage clause that makes this possible is the: -
✔✔demand clause.
✔✔The two elements of a mortgage loan include: - ✔✔The note which describes the
exact terms of the financial obligation and the mortgage which pledges the property as
security for the note.
✔✔Which of the following is least correct regarding the benefits of mortgage finance? -
✔✔Homeowners can obtain credit on lesser terms than consumer debt (home equity
credit lines which are taxed unfavorably, shorter term and at a higher interest rate).
✔✔Consider a homeowner in mortgage distress who owes more than the value of the
home, and is unable to make the loan manageable by refinancing or modifying the
mortgage. One recourse, referred to as a ______________ ______________, entails
the owner obtaining a contractual offer from a buyer, which is acceptable by the lender,
thus enabling the seller to be relieved of some or all of the outstanding balance on the
mortgage without foreclosure. - ✔✔Short Sale
✔✔The element of an adjustable interest rate that is the "moving part" is the: - ✔✔index.
✔✔A lender offers a mortgage loan consisting of 12 years of payments followed by an
additional large payment of principal with the last scheduled payment. This is
characteristic of: - ✔✔a partially amortizing loan.
✔✔The "mark-up" that a lender adds to the index rate is referred to as the: - ✔✔margin.
