CALIFORNIA REAL ESTATE SALESPERSON EXAM
2024 ACTUAL EXAM 2 VERSIONS (VERSION A AND
B) QUESTIONS | TESTED AND PROVEN ANSWERS |
LATEST UPDATE 2024/2025 100% (GRADE A+)
The Federal National Mortgage Association(Fannie Mae) and the Federal Home Loan
Mortgage Corporation(Freddie Mac, are government sponsored entities(gse's) that
together provide a _________________ for residential mortgages.
Ans>> secondary market
The _________________________provides insurance to approved lenders against losses on
residential mortgage loans.
Ans>> Federal Housing Administration (FHA)
An ____ loan is more expensive for the borrower than a conventional, VA, or Cal-Vet loan.
Ans>> FHA Loan
The ____ guarantees part of a loan made to a veteran.
Ans>> VA (US Dept. of Veterans Affairs)
1
,A ____ loan typically has no down payment; FHA and Cal-Vet loans do.
Ans>> VA (US Dept. of Veterans Affairs)
____________ loans can be used to buy 1-4 family residential properties, but they must be
owner occupied (can be rented later).
Ans>> FHA and VA
A ________ loan is unique. It purchases residential properties selected by veterans that are
then sold to veterans on land contracts(installment sales contract) as the security property.
Legal title is held by the department until the loan is paid off. the program is financed by
the sale of tax free bonds by the State of California; Interest rates are set by the Legislature
based on the cost of funding.
Ans>> Cal-Vet (California Department of Veterans Affairs)
_________ finances mortgage loans to low and moderate income first time homebuyers. These
loans are funded by the sale of tax free bonds and made through approved private lenders.
Ans>> CalHFA (California Housing Finance Agency)
2
,A ___________ is the general term for any loan on real property.
Ans>> mortgage
To create a mortgage, the borrower signs a _________________ and a ___________________ that
creates a lien on the property.
Ans>> promissory note; security installment
In California the security instrument used is a _________________, in some other states a
traditional mortgage is used, which must be foreclosed in court.
Ans>> deed of trust
A ________ is a failure to pay a debt, fulfill a duty or promise, or an omission or failure to
perform some required act.
Ans>> default
When the loan is a _____________, the lender has a security interest in the debtors property
put up as collateral for the loan.
Ans>> secured loan
3
, A _________________ is a written promise to pay money, the actual evidence of the debt.
Ans>> promissory note
In a ______________ no principal payments are made during the term; instead the borrower
repays the entire principal in a lump sum at maturity; the interest can be paid in
installments or at maturity.
Ans>> straight note
In a __________________, the loan is completely repaid, interest and principal, by a series of
regular payments over the term; amortization is the liquidation of a financial obligation on
an installment basis. Home loans are typically like this.
Ans>> fully amortized loans
A __________________ is an amortized loan that is paid off by a series of equal payments of
principal and interest; in a level payment loan the portion of each payment applied to the
principal increases with each payment because loan is being paid down and, so, the portion
applied to interest is always decreasing.
4
2024 ACTUAL EXAM 2 VERSIONS (VERSION A AND
B) QUESTIONS | TESTED AND PROVEN ANSWERS |
LATEST UPDATE 2024/2025 100% (GRADE A+)
The Federal National Mortgage Association(Fannie Mae) and the Federal Home Loan
Mortgage Corporation(Freddie Mac, are government sponsored entities(gse's) that
together provide a _________________ for residential mortgages.
Ans>> secondary market
The _________________________provides insurance to approved lenders against losses on
residential mortgage loans.
Ans>> Federal Housing Administration (FHA)
An ____ loan is more expensive for the borrower than a conventional, VA, or Cal-Vet loan.
Ans>> FHA Loan
The ____ guarantees part of a loan made to a veteran.
Ans>> VA (US Dept. of Veterans Affairs)
1
,A ____ loan typically has no down payment; FHA and Cal-Vet loans do.
Ans>> VA (US Dept. of Veterans Affairs)
____________ loans can be used to buy 1-4 family residential properties, but they must be
owner occupied (can be rented later).
Ans>> FHA and VA
A ________ loan is unique. It purchases residential properties selected by veterans that are
then sold to veterans on land contracts(installment sales contract) as the security property.
Legal title is held by the department until the loan is paid off. the program is financed by
the sale of tax free bonds by the State of California; Interest rates are set by the Legislature
based on the cost of funding.
Ans>> Cal-Vet (California Department of Veterans Affairs)
_________ finances mortgage loans to low and moderate income first time homebuyers. These
loans are funded by the sale of tax free bonds and made through approved private lenders.
Ans>> CalHFA (California Housing Finance Agency)
2
,A ___________ is the general term for any loan on real property.
Ans>> mortgage
To create a mortgage, the borrower signs a _________________ and a ___________________ that
creates a lien on the property.
Ans>> promissory note; security installment
In California the security instrument used is a _________________, in some other states a
traditional mortgage is used, which must be foreclosed in court.
Ans>> deed of trust
A ________ is a failure to pay a debt, fulfill a duty or promise, or an omission or failure to
perform some required act.
Ans>> default
When the loan is a _____________, the lender has a security interest in the debtors property
put up as collateral for the loan.
Ans>> secured loan
3
, A _________________ is a written promise to pay money, the actual evidence of the debt.
Ans>> promissory note
In a ______________ no principal payments are made during the term; instead the borrower
repays the entire principal in a lump sum at maturity; the interest can be paid in
installments or at maturity.
Ans>> straight note
In a __________________, the loan is completely repaid, interest and principal, by a series of
regular payments over the term; amortization is the liquidation of a financial obligation on
an installment basis. Home loans are typically like this.
Ans>> fully amortized loans
A __________________ is an amortized loan that is paid off by a series of equal payments of
principal and interest; in a level payment loan the portion of each payment applied to the
principal increases with each payment because loan is being paid down and, so, the portion
applied to interest is always decreasing.
4
