REAL ESTATE TESTS COMPILATION BUNDLE

1 month/1 year CORRECT ANSWERS: 30 days=1 month / for escrow and proration purposes 1 year = 12 months, 52 weeks. 100-year flood zone CORRECT ANSWERS: The area has a 1 percent or greater chance of a major flood occurring in any given year. 17-day period after acceptance CORRECT ANSWERS: The...

1) With an ARM, what is the shortest period of time the interest rate or payment amount could remain in effect: A. One month B. Six months C. One year D. Five years correct answer: A. One month 2) With an ARM, if interest rates are stable and do not rise, can payments rise and why: A. N...

1) All of the following are true regarding the Closing Disclosure, except: A. The creditor and the settlement agent can share responsibility for the Closing Disclosure. B. The settlement agent can complete all or part of the Closing Disclosure for the creditor. C. The creditor and the settlemen...

1) If applicable, and if the settlement service provider is other than the lender, which of the following disclosures is required before settlement but is not required within 3 business days after receipt of a completed application: A. Mortgage Servicing Disclosure Statement. B. Affiliated Busin...

1) Mortgage loan fraud is reported at what level? A. State B. Federal C. County D. City correct answer: B. Mortgage Fraud is reported to the FBI and to HUD. 2) Title V of the Housing and Economic Recovery Act (HERA) of 2008 is best known as: A. The SAFE Act B. RESPA C. TILA D. CRA c...

1) The document which combines the Truth in Lending Statement required by TILA and the Good Faith Estimate required by RESPA is which of the following: A. The Home Loan Toolkit. B. The Loan Estimate. C. The Mortgage Servicing Disclosure Statement. D. The Closing Disclosure. correct answer: B....

1) When provisions of TILA refer to a creditor extending credit to a consumer, what does that mean? A. People, not a company. B. Businesses, if not more than a sole proprietorship. C. Sole proprietorships and partnerships. D. Corporations that were formed by consumers. correct answer: A. This...

1) The purpose of the Equal Credit Opportunity Act (ECOA) is which of the following: A. To protect the credit history of consumers. B. To minimize discrimination in the obtaining of credit. C. To ensure that all consumers have an equal opportunity to obtain credit. D. To help consumers fight t...

1. Which of the following best defines negative amortization: A. It is the same as interest only, with no interest being paid. B. Not only is no principal being paid, but not all of the interest due is being paid, hence the loan balance is growing due to this deferred interest.C. It is the same ...

1. All of the following are true about the margin on an ARM, except: A. The margin is the difference between the index value and the interest rate charged on an ARM. B. The margin is sometimes called the spread. C. The margin fluctuates like the index fluctuates with the cost of funds. D. The ...

1. All of the following are true regarding the counselor who meets with a prospective borrower for a reverse mortgage, except: A. The counselor explains the cost of the loan and the financial implications of obtaining it. B. The counselor is paid only if the borrower goes through with the revers...

1) Which one of these classes of people is protected under the Fair Housing Act but not under the Equal Credit Opportunity Act: A. Race B. Sex C. Disability D. Religion correct answer: C. Disability 2) Which one of these classes of people is protected under the Equal Credit Opportunity Act...

1) The Mortgage Banker's Association considers all of the following indicators of predatory lending except: A. Falsifying loan documents B. Requiring credit insurance C. Requiring mortgage insurance D. Charging excessive prepayment penalties correct answer: C. Mortgage insurance is PMI, a re...

1) A person who earns $26/hr has a monthly gross income of nearest to what amount: A. $4500 B. $4250 C. $4760 D. $5200 correct answer: A. Multiply the hourly wage by 40 hours in the workweek, multiply by 52 weeks in the year, and divide by the 12 months in a year. 26 x 40 = $1040 x 52 = $54,0...

1) The stated purpose of the Dodd-Frank Wall Street Reform and Consumer Protection Act is which of the following: A. Improve accountability and transparency in America's financial system B. To protect the American taxpayer by ending bailouts C. To protect consumers from abusive financial servi...

1. Which of the following is true regarding the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (The SAFE Act): A. It is effective as of July 31, 2009. B. It is a key component of the Housing and Economic Recovery Act of 2008. C. It requires all states to implement a SAFE-complia...

1. All of the following statements are true about a partially amortized loan, except: A. The periodic payments do not fully amortize the loan by the end of the term. B. The final payment is a balloon payment. C. A partially amortized loan is a self-liquidating loan. D. Interest is being paid t...

A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called correct answer: a contract Antitrust laws prohibit competing brokers from all of the following correct answer: 1. boycotting other brokers in the marketplace. 2. dividing the market to restrict competi...