Download Real Estate Finance Practice Questions and Answers and more Quizzes Real Estate Management in PDF only on Docsity!
CHAMPIONS SCHOOL OF REAL
ESTATE - REAL ESTATE FINANCE
PRACTICE 280 QUESTIONS WITH
100% VERIFIED CORRECT ANSWERS
GUARANTEED A+
"Federal tax policy that affects demand for real estate includes all of the following except: A) Deductibility of real property taxes B) Deductibility of mortgage interest payments C) Exemptions from capital gains taxation
D) The supply of money - CORRECT ANSWER=> D"
"When was the FHA created? A) 1912 B) 1934 C) 1929
D) 2008 - CORRECT ANSWER=> B"
"Who funds the FHA? A) The FHA itself B) The FED C) The American Taxpayers
D) Fannie Mae - CORRECT ANSWER=> A"
"What is the largest denomination Federal Reserve Note ever issued for public circulation? A) $1, B) $50, C) $
D) $10,000 - CORRECT ANSWER=> D"
"Who determines the prime rate?
A) The President of the US B) Federal Reserve C) Congress
D) Individual Banks - CORRECT ANSWER=> D"
"Who provides VA Home Loans? A) FHA B) Private Lenders C) The VA Itself
D) All of these - CORRECT ANSWER=> B"
"The Single Family Housing Direct Home Loan is also known as: A) Program 101 B) Section 8 Program Housing C) Section 502 Direct Loan Program
D) None of these is correct - CORRECT ANSWER=> C"
"The sum of currency held by the public and transaction deposits at the depository institutions is referred to as: A) M B) Precious metals C) M
D) Fiat Money - CORRECT ANSWER=> A"
"_______ is currency that is not backed by precious metals at all. A) Fiat Money B) M C) Cash
D) Faith money - CORRECT ANSWER=> A"
"M1 plus savings deposits, small-denominations time deposits, and retail money market mutual fund shares is __________. A) M B) M C) Fiat money
D) Cash - CORRECT ANSWER=> A"
"_____________ relates to government spending.
A) Increases B) Reduces C) Doubles
D) Slows - CORRECT ANSWER=> B"
"___________ was created in September 2008 to restore the nation's financial stability and restart economic growth. A) The Federal Deposit Insurance Corporation B) The Troubled Asset Relief Program C) The U.S. Mint
D) The U.S. Treasury - CORRECT ANSWER=> B"
"The United States Treasury is responsible for all of the following except: A) Applying monetary policy to manage the growth of the economy B) Raising funds to finance operations of the government C) Advising the president on economic and financial issues
D) Implementing economic sanctions against foreign threats - CORRECT ANSWER=> A"
"The Department of Treasury is organized into two main components: the departmental office and ____________. A) Management departments B) Cabinet positions C) Organizational offices
D) Operating bureaus - CORRECT ANSWER=> D"
"___________ was a federal law enacted in 2008 to promote the stability and liquidity of the financial system through the authorization of TARP. A) Fannie Mae B) Internal Revenue Service C) Emergency Economic Stabilization Act
D) Office of the Comptroller of the Currency - CORRECT ANSWER=> C"
"The _______________ charters, regulates, and supervises all national banks, federal savings associations, federal branches, and agencies of foreign banks. A) US Treasury B) US Mint C) Office of the Comptroller of the Currency
D) Internal Revenue Service - CORRECT ANSWER=> C"
"The Single Family Housing Direct Home Loan is also known as: A) Program 101 B) Section 8 Program Housing C) Section 502 Direct Loan Program
D) None of these is correct - CORRECT ANSWER=> C"
"The Federal Deposit Insurance Corporate (FDIC) was created in: A) 1930 B) 1929 C) 1933
D) 1932 - CORRECT ANSWER=> C"
"The Federal Deposit Insurance Corporate (FDIC) receives its funding from A) Premiums that banks and thrift institutions pay B) Federal Government C) Tax dollars
D) Congressional appropriations - CORRECT ANSWER=> A"
"The Federal Deposit Insurance Corporate (FDIC) examines banks for compliance with all of the following consumer protection law, except: A) Emergency Economic Stabilization Act B) Fair Credit Reporting Act C) Truth In Lending Act
D) Community Reinvestment Act - CORRECT ANSWER=> A"
"The Federal Deposit Insurance Corporate (FDIC) insures deposits in banks and thrift institutions for up to: A) $100, B) $500, C) $250,
D) $1,000,000 - CORRECT ANSWER=> C"
"There are ____________ Federal Home Loan Banks. A) 20 B) 10 C) 12
D) 2 - CORRECT ANSWER=> C"
A) Inclusion B) Disclosure C) Integrity
D) Fidelity - CORRECT ANSWER=> C
Respect, Excellence, Diversity, and Integrity" "All of the following are HUD's major programs except: A) Federal Housing Administration B) Consumer Financial Protection Bureau C) Community Development Block Grants
D) Section 8 Housing - CORRECT ANSWER=> B"
"Which of the following is NOT a protected class under Federal Fair Housing? A) Age B) Race C) Color
D) Sex - CORRECT ANSWER=> A"
"The Interstate Land Sales Full Disclosure Act was passed in 1968 to protect consumers from ______________ in the sale or lease of land. A) Builders B) Fraud C) Developers
D) Discrimination - CORRECT ANSWER=> B"
"The Interstate Land Sales Full Disclosure Act requires developers to file a property report with: A) HUD B) CFPB C) FHA
D) HAMDA - CORRECT ANSWER=> B"
"HUD's Community Development Block Grant Program funds are used to meet all of the following goals except: A) Meeting an urgent need that threatens health or safety B) Preventing or eliminate slum or blight conditions C) Aiding low and moderate-income persons
D) Developing shopping centers and other commercial areas - CORRECT ANSWER=> D"
"The Federal Housing Administration provides mortgage insurance on all of the following purchases except: A) Single-family homes B) Timeshares C) Manufactured Homes
D) Multi-family homes - CORRECT ANSWER=> B"
"Sylvia, a real estate license holder, decides to prospect for new customers by handing out flyers which highlight her qualifications and also provide information about special loan programs. She works in a metropolitan area where the housing market continues to grow, and many new homes are being built in an area where zero-down USDA financing can be used. Victor, an RMLO, volunteers to pay for the flyers and take care of all of the printing and set up if the flyers can be co-branded in order to help them both generate new business at the same time. Sylvia had some ideas about what she wanted the flyers to say about loans, but Victor assures her that he can do an excellent job at writing the information for that section of the flyer. Which of the following should Sylvia and Victor avoid adding to their advertising flyers because it is considered a trigger by Truth-In-Lending? A) "Low Down Payment."
B) "Financing Ava - CORRECT ANSWER=> C"
"Sylvia, a real estate license holder, decides to prospect for new customers by handing out flyers which highlight her qualifications and also provide information about special loan programs. She works in a metropolitan area where the housing market continues to grow, and many new homes are being built in an area where zero-down USDA financing can be used. Victor, an RMLO, volunteers to pay for the flyers and take care of all of the printing and set up if the flyers can be co-branded in order to help them both generate new business at the same time. Sylvia had some ideas about what she wanted the flyers to say about loans, but Victor assures her that he can do an excellent job at writing the information for that section of the flyer. How can Sylvia ensure that Victor is properly licensed as an RMLO? A) She can look him up in the NMLSR B) She can look him up on TREC's website C) She can ask him to prove it
D) None o - CORRECT ANSWER=> A"
"Sylvia, a real estate license holder, decides to prospect for new customers by handing out flyers which highlight her qualifications and also provide information about special loan programs. She works in a metropolitan area where the housing market continues to grow, and many new homes are being built in an area where zero-down USDA financing can be used. Victor, an RMLO, volunteers to pay for the flyers
The Farm Service Agency is an agency of the FHA. - CORRECT ANSWER=> False"
"True or False
FSA loans include farm ownership loans, operating loans, and emergency loans. - CORRECT ANSWER=>
True" "The Office of Consumer Credit Commissioner regulates all of the following real estate transactions except: A) Secondary Mortgage B) Home Equity Loans C) Property Tax Lien Lenders
D) Purchase Mortgages - CORRECT ANSWER=> D"
"The Texas Department of Savings and Mortgage Lending A) Licenses or Registers RMLOs in the State of Texas B) Oversees Banks C) Administers the Real Estate License Act
D) Regulates the Manufactured Home Industry - CORRECT ANSWER=> A"
"The Texas Department of Housing and Community Affairs (TDHCA) is responsible for all of the following except: A) Housing-Related Community Service Programs B) The Manufactured Home Industry C) Residential Mortgage Loan Originators
D) Affordable Housing - CORRECT ANSWER=> C"
"The Texas Veterans Land Board's Home Loan Program is for: A) All Honorably Discharged Veterans B) All Texas Veterans C) Disabled Texas Veterans Only
D) The Parents of a Texas Veteran - CORRECT ANSWER=> A"
"The TVLB Land Loan Program is for land ____________. A) Up to an acre B) With a sales price of over $200, C) Inside or outside of Texas
D) Of at least an acre - CORRECT ANSWER=> D"
"The Texas Reverse Mortgage is for older homeowners who are described as ____________. A) House-Rich and Cash-Poor B) Well-Invested C) New Immigrants to Texas
D) Disabled - CORRECT ANSWER=> A"
"This section of RESPA prohibits the seller from directly or indirectly requiring the buyer to purchase title insurance from a specific title company. A) Section 7 B) Section 9 C) Section 8
D) Section 10 - CORRECT ANSWER=> B"
"RESPA Section 8 requires the disclosure of: A) Title Companies B) Trigger Terms C) Lenders
D) Affiliated Business Arrangements - CORRECT ANSWER=> D"
"This section of RESPA places limits on the amounts that a lender may require a borrower to put into an escrow account for the purpose of paying taxes and hazard insurance. A) Section 7 B) Section 10 C) Section 8
D) Section 9 - CORRECT ANSWER=> B"
"RESPA regulates closing on _______________ with federally related financing. A) 1 to 4 family residential transactions B) Temporary loans C) 25 acres or more
D) Commercial transactions - CORRECT ANSWER=> A"
"This section of RESPA prohibits kickbacks and unearned fees. A) Section 9 B) Section 10 C) Section 8
D) Section 7 - CORRECT ANSWER=> C"
D) Escrow Account - CORRECT ANSWER=> D"
"The loan amount will be found in the _______________ section of the Loan Estimate. A) Costs at Closing B) Closing Costs Detail C) Loan Terms
D) Projected Payments - CORRECT ANSWER=> C"
"The _______________ section has costs associated with the loan that the buyer may not choose the provider of the services. A) Origination Charges B) Services You Cannot Shop For C) Other Costs
D) Services You Can Shop For - CORRECT ANSWER=> B"
"Calculating Cash to Close _________________. A) Is a Summation of sections E, F, G and H only B) Is a Summation of sections A, B, C, E, F, G, and H C) Is a Summation of sections A, B, and C only
D) Is Unknown to the Buyer until Cosing - CORRECT ANSWER=> B"
"True or False
Signing the Loan Estimate locks the borrower into the loan described in the LE form. - CORRECT
ANSWER=> False"
"All of the following are part of the section called Due From Borrower at Closing on page 3 of the Closing Disclosure except: A) Seller's Loan Payoff B) Sales Price of the Property C) Sales Price of any Personal Property
D) Closing Costs Paid at Closing - CORRECT ANSWER=> A"
"The borrower receives a credit on the disclosure for which of the following: A) Seller's Loan Payoff B) Loan Amount C) The Sales Price
D) Pre-Paid Property Taxes - CORRECT ANSWER=> B"
"The seller receives a credit at closing for all of the following except: A) The Sales Price of any Personal Property B) Unpaid Property Taxes C) A Balance in the Seller's Reserve Account
D) The Sales Price of the Property - CORRECT ANSWER=> B"
"The seller is debited at closing for: A) Pay-off of the First Mortgage B) Pre-Paid Taxes C) The Sales Price of the Property
D) Pre-Paid HOA Fees - CORRECT ANSWER=> A"
"The return on an investment is called the _______________. A) Liquidity B) Disintermediation C) Interest rate
D) Yield - CORRECT ANSWER=> D"
"The _______________ exists for the purchase and sale of existing mortgages to investors. A) Yield B) Primary Market C) Disintermediation
D) Secondary Market - CORRECT ANSWER=> D"
"The secondary market is designed to provide greater _______________ to the residential real estate mortgage market by providing for a steady supply of funds from investors. A) Interest Rate B) Distribution C) Liquidity
D) Yield - CORRECT ANSWER=> C"
"The process of moving savings funds from one arena to another is called: A) Interest Rate B) Disintermediation C) The Primary Market
D) Conservatorship - CORRECT ANSWER=> B"
"The Federal National Mortgage Association is also known as:
D) Freddie Mac - CORRECT ANSWER=> D"
"Fannie Mae began as an agency of the U.S. government in _______________. A) 1934 B) 1970 C) 1938
D) 1968 - CORRECT ANSWER=> C"
"_______________ is a wholly-owned government association that operates the mortgage-backed securities program designed to facilitate the flow of capital into the housing industry. A) FHFA B) Farmer Mac C) Ginnie Mae
D) Freddie Mac - CORRECT ANSWER=> C"
"Fannie Mae operates exclusively in the _______________ and provides support to mortgage lending institutions in the primary market. A) U.S. Department of Agriculture B) Impoverished areas of the country C) Secondary Market
D) Department of Housing and Urban Development - CORRECT ANSWER=> C"
"To raise money for the purchase of loans, Freddie Mac sells its own _______________. A) Loans B) Collateralized Mortgages C) Securities
D) Bonds - CORRECT ANSWER=> C"
"_______________ is a government-sponsored enterprise with the mission of providing a secondary market for agricultural real estate mortgage loans. A) Ginnie Mac B) FHA C) Farmer Mac
D) VA - CORRECT ANSWER=> C"
"Fannie Mae works to accomplish all of the following housing objectives except: A) It standardizes mortgage loans. B) It funds loans for credit poor areas
C) It allows lenders to originate loans for sale rather than for portfolio investment
D) It addresses imbalances of mortgage credit among regions of the United States - CORRECT
ANSWER=> B"
"Due to the financial crash of 2007, the _______________ placed Freddie Mac and Fannie Mae into conservatorship. A) Federal Housing Finance Agency B) Federal Reserve C) Government Sponsored Enterprises
D) Housing Economic Recovery Act - CORRECT ANSWER=> A"
"The _______________ was enacted in July of 2008 creating the Federal Housing Finance Agency. A) Farmer Mac B) Home Equity Conversion Program C) Housing and Economic Recovery Act
D) Office of Housing Enterprise Oversight - CORRECT ANSWER=> C"
"The two largest issuers of REMICS are Freddie Mac and _______________. A) Ginnie Mae B) The Federal Government C) Fannie Mae
D) USDA - CORRECT ANSWER=> C"
"A Real Estate Mortgage Investment Conduit allows for the _______________ investment in mortgages through the sale of securities. A) Quickest B) Direct C) Tax-free
D) Indirect - CORRECT ANSWER=> D"
"In a REMIC, the repayment of principal and interest is channeled through to the _______________. A) Originator of the loan B) Federal National Mortgage Association C) Servicer of the loan
D) Investors - CORRECT ANSWER=> D"
"Commercial banks, credit unions, mortgage companies, and savings and loans are all part of the ______.
A) Pension and Retirement Programs B) Primary Markets C) Credit Unions
D) Mortgage Brokers - CORRECT ANSWER=> A"
"Sources of income for a Real Estate Mortgage Trust include all of the following, except: A) Gain from buying and selling mortgages B) Origination Fees C) Interest
D) Rent - CORRECT ANSWER=> D"
"A _______________ is an investment vehicle created to allow small investors to invest in larger commercial properties. A) Real Estate Mortgage Trust B) Mortgage Bankers C) Commercial Lenders
D) Real Estate Investment Trust - CORRECT ANSWER=> D"
"A _______________ invests in mortgages or mortgage-backed securities. A) Apartment REIT B) Equity Estate REIT C) Real Estate Mortgage Trust
D) Congressional Trust - CORRECT ANSWER=> C"
"An Equity Estate REIT purchases all of the following except: A) Mortgages B) Office Buildings C) Self-storage Facilities
D) Apartment Buildings - CORRECT ANSWER=> A"
"A _____ owns a share of the corporation. A) Investor B) Bondholder C) Corporate Manager
D) Stockholder - CORRECT ANSWER=> D"
"A _____ is a debt instrument used to lend money to a firm of government entity. A) Stock
B) Purchase Mortgage C) Bond
D) REIT - CORRECT ANSWER=> C"
"A corporation is obligated to repay the _____. A) Bondholders B) Investors C) Stockholders
D) Board of Directors - CORRECT ANSWER=> A"
"Stockholders anticipate receiving a _____, which is profit that is distributed to the stockholders. A) Maturity B) Interest C) Dividend
D) Appreciation - CORRECT ANSWER=> C"
"A(n) _____ sells municipal bonds to fund major capital investments. A) Corporation B) Mortgage Company C) Organization
D) Government Entity - CORRECT ANSWER=> D"
"A bond is rated according to its _____. A)Risk B) Yield C) Return
D) Capital - CORRECT ANSWER=> A"
"Sellers may be interested in financing a property because: A) The secured note may be a good investment B) The property being sold may be a type that is difficult to finance through regular mortgage lenders. C) The buyer may have credit issues that prevent financing from regular mortgage sources but may still be a reasonable risk.
D0 All of these are reasons a seller may be interested in seller financing. - CORRECT ANSWER=> D"
"Seller financing may be referred to as a _______________. A) Seller carryback B) Mortgage Banker
