PRINCIPLES OF REAL ESTATE 2 Champion
Practice Exam Questions with 100% Correct
Answers Latest Versions 2025 Top Rated A+
"For tax purposes the _______ is determined by the taxing authority.
a. assessed value
b. appraised value
c. market price
d. investment value - Correct Answer a. assessed value"
"In the appraisal report, the property being appraised is referred to as the _______ property.
a. Target property
b. Comparable property
c. Sold property
d. Subject property - Correct Answer d. Subject property"
"The principle of ___________ suggests that the value of property is equal to the sum of the contributory
value of each of its component parts?
a. Anticipation
b. change
c. substitution
d. contribution - Correct Answer d. contribution"
"The market in which borrowers and lenders come together to create and negotiate the terms of a
mortgage transaction - Correct Answer Primary mortgage market"
"The practice of refusing to provide financing
in a particular location - Correct Answer Redlining"
"The process of making a lending decision - Correct Answer Underwriting"
"The process of creating a new mortgage loan - Correct Answer Origination"
"a pledge of real estate as security for repayment of a debt - Correct Answer mortgage"
"The borrower, is known as - Correct Answer mortgagor."
,"The lender is known as the - Correct Answer mortgagee."
"The mortgage "package" actually consists of two major documents: - Correct Answer 1. promissory
note,
2. mortgage,"
"The market in which borrowers and mortgage lenders come together to create and negotiate terms of a
mortgage transaction is called the - Correct Answer primary mortgage market."
"A major difference between mortgage companies and regulated lenders is - Correct Answer mortgage
companies rely on commercial banks"
"Mortgage loan originators can be broken down into three categories - Correct Answer 1. mortgage
bankers,
2. mortgage brokers
3. correspondent lenders"
"What is Servicing? - Correct Answer activities include collecting monthly payments, disbursing the
funds to pay taxes and property insurance, supervising the loan, preventing delinquencies and
coordinating foreclosure activities in the event of a delinquency"
"a person, corporation or firm, not otherwise in banking, that provides its own funds for mortgage
financing as opposed to savings and loan associations or commercial banks that use other people's money
(depositors) to originate mortgage loans. - Correct Answer MORTGAGE BANKERS"
"provided consumers with assistance securing hard to place or niche sources of mortgage money. -
Correct Answer MORTGAGE BROKERS"
"The investors assign large blocks of loans into - Correct Answer loan pools"
"is someone who processes, underwrites, closes and funds his or her own files in his or her name. -
Correct Answer CORRESPONDENT LENDERS"
"The process of creating a new mortgage loan, including all steps taken by a lender to attract and qualify
a borrower, are considered - Correct Answer origination activities"
"detailed process of evaluating a borrower's loan application to determine the risk involved for the lender
is defined as - Correct Answer UNDERWRITING"
"The consummation of a real estate transaction in which all appropriate documents are signed and the
proceeds of the mortgage loan are disbursed by the lender is called - Correct Answer closing"
, "The process of transferring funds to a title or escrow company for disbursement is called - Correct
Answer funding"
"includes sending monthly payment statements and collecting monthly payments, maintaining records of
payments and balances, collecting and paying taxes and insurance (and managing escrow and impound
funds), remitting funds to the note holder, and following up on delinquencies - Correct Answer
Servicing"
"Net basis rates are sometimes identified as the - Correct Answer "wholesale rate.""
"Real estate license holders often refer buyers to a number of trusted loan originators, now universally
referred to as - Correct Answer Residential Mortgage Loan Originators (RMLOs)"
"is designed to enhance consumer protection and reduce fraud. - Correct Answer The Secure and Fair
Enforcement for Mortgage Licensing Act (SAFE Act)"
"was established. The Bureau has the authority to examine and enforce consumer protection regulations
for all mortgage-related businesses, large non-bank financial companies, and banks and credit unions with
assets greater than $10 billion. - Correct Answer Consumer Financial Protection Bureau (CFPB)"
"Responsible for enforcing "federal consumer financial law" - Correct Answer Consumer Financial
Protection Bureau (CFPB)"
"to ensure that banks would serve the needs of the community in which they were chartered to do
business. - Correct Answer Community Reinvestment Act"
"ensures that all consumers are given an equal chance to obtain credit. - Correct Answer Equal Credit
Opportunity Act (ECOA),"
"Equal Credit Opportunity Act prohibits discrimination in any aspect of - Correct Answer Race
Color
Religion
National Origin
Sex
Martial status
Age
Receipt of income"
"designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the
lending arrangement and all costs. - Correct Answer Truth In Lending Act (TILA)"
"exists for the purchase and sale of existing mortgages to investors. - Correct Answer secondary market"
Practice Exam Questions with 100% Correct
Answers Latest Versions 2025 Top Rated A+
"For tax purposes the _______ is determined by the taxing authority.
a. assessed value
b. appraised value
c. market price
d. investment value - Correct Answer a. assessed value"
"In the appraisal report, the property being appraised is referred to as the _______ property.
a. Target property
b. Comparable property
c. Sold property
d. Subject property - Correct Answer d. Subject property"
"The principle of ___________ suggests that the value of property is equal to the sum of the contributory
value of each of its component parts?
a. Anticipation
b. change
c. substitution
d. contribution - Correct Answer d. contribution"
"The market in which borrowers and lenders come together to create and negotiate the terms of a
mortgage transaction - Correct Answer Primary mortgage market"
"The practice of refusing to provide financing
in a particular location - Correct Answer Redlining"
"The process of making a lending decision - Correct Answer Underwriting"
"The process of creating a new mortgage loan - Correct Answer Origination"
"a pledge of real estate as security for repayment of a debt - Correct Answer mortgage"
"The borrower, is known as - Correct Answer mortgagor."
,"The lender is known as the - Correct Answer mortgagee."
"The mortgage "package" actually consists of two major documents: - Correct Answer 1. promissory
note,
2. mortgage,"
"The market in which borrowers and mortgage lenders come together to create and negotiate terms of a
mortgage transaction is called the - Correct Answer primary mortgage market."
"A major difference between mortgage companies and regulated lenders is - Correct Answer mortgage
companies rely on commercial banks"
"Mortgage loan originators can be broken down into three categories - Correct Answer 1. mortgage
bankers,
2. mortgage brokers
3. correspondent lenders"
"What is Servicing? - Correct Answer activities include collecting monthly payments, disbursing the
funds to pay taxes and property insurance, supervising the loan, preventing delinquencies and
coordinating foreclosure activities in the event of a delinquency"
"a person, corporation or firm, not otherwise in banking, that provides its own funds for mortgage
financing as opposed to savings and loan associations or commercial banks that use other people's money
(depositors) to originate mortgage loans. - Correct Answer MORTGAGE BANKERS"
"provided consumers with assistance securing hard to place or niche sources of mortgage money. -
Correct Answer MORTGAGE BROKERS"
"The investors assign large blocks of loans into - Correct Answer loan pools"
"is someone who processes, underwrites, closes and funds his or her own files in his or her name. -
Correct Answer CORRESPONDENT LENDERS"
"The process of creating a new mortgage loan, including all steps taken by a lender to attract and qualify
a borrower, are considered - Correct Answer origination activities"
"detailed process of evaluating a borrower's loan application to determine the risk involved for the lender
is defined as - Correct Answer UNDERWRITING"
"The consummation of a real estate transaction in which all appropriate documents are signed and the
proceeds of the mortgage loan are disbursed by the lender is called - Correct Answer closing"
, "The process of transferring funds to a title or escrow company for disbursement is called - Correct
Answer funding"
"includes sending monthly payment statements and collecting monthly payments, maintaining records of
payments and balances, collecting and paying taxes and insurance (and managing escrow and impound
funds), remitting funds to the note holder, and following up on delinquencies - Correct Answer
Servicing"
"Net basis rates are sometimes identified as the - Correct Answer "wholesale rate.""
"Real estate license holders often refer buyers to a number of trusted loan originators, now universally
referred to as - Correct Answer Residential Mortgage Loan Originators (RMLOs)"
"is designed to enhance consumer protection and reduce fraud. - Correct Answer The Secure and Fair
Enforcement for Mortgage Licensing Act (SAFE Act)"
"was established. The Bureau has the authority to examine and enforce consumer protection regulations
for all mortgage-related businesses, large non-bank financial companies, and banks and credit unions with
assets greater than $10 billion. - Correct Answer Consumer Financial Protection Bureau (CFPB)"
"Responsible for enforcing "federal consumer financial law" - Correct Answer Consumer Financial
Protection Bureau (CFPB)"
"to ensure that banks would serve the needs of the community in which they were chartered to do
business. - Correct Answer Community Reinvestment Act"
"ensures that all consumers are given an equal chance to obtain credit. - Correct Answer Equal Credit
Opportunity Act (ECOA),"
"Equal Credit Opportunity Act prohibits discrimination in any aspect of - Correct Answer Race
Color
Religion
National Origin
Sex
Martial status
Age
Receipt of income"
"designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the
lending arrangement and all costs. - Correct Answer Truth In Lending Act (TILA)"
"exists for the purchase and sale of existing mortgages to investors. - Correct Answer secondary market"
