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WorksheetsReal Estate Principles Unit 10 multiple choice 2
Total questions: 15
Worksheet time: 8mins
The most effective method for the federal reserve to create a “tight money” market is to
Buy government bonds and increase the reserve requirement
Sell government bonds and decrease the reserve requirement
Buy government bonds, and raise the discount rate
Sell government bonds and raise the discount rate
What federal agency ensures deposits, in all federally, chartered banks and savings institutions?
GLBA
HUD
FIRREA
FDIC
The process of gradually, relaxing regulatory restraints is called
Disintermediation
Deregulation
Depreciation
None of the above
The type of lenders having the greatest percentage percentage of its assets invested in residential real estate mortgages are
Commercial banks
Credit unions
Life insurance companies
Thrifts
Which of the following lenders frequently uses a warehouse line to make loans to borrowers?
FHA
Mortgage companies
Savings and loan associations
VA
In the field of real estate financing, the term “secondary mortgage market” usually refers to
Junior liens
Secondary financing
Unsecured financial instruments
The resale or transfer of existing trust, deed loans
The original purpose of the Federal National Mortgage Association (Fannie Mare) was
Buying and selling FHA and VA loans in the secondary market
Buying and selling conventional loans in the secondary market
Buying FHA and VA loans in the primary market
Selling VHA and VA loans in the primary market
What shows the borrowers payment history, balance of outstanding debt, credit history, number of credit inquiries, and types of debt held?
FICO score
Credit score
Loan application
Credit report
The underlying security for the mortgage loan is the
Credit-worthiness of the borrower
Loan-to-value
Property
Borrowers FICO score
If only the annual percentage rate (APR) is disclosed in an advertisement for property which additional disclosures must be made?
The amount or percentage of the down payment
The terms of repayment
The amount of any finance charge
No other disclosures are required
For a real estate loan, which of the following fees may not be included in the final charge, according to the federal Truth in Lending Act?
Interest
Finders fees
Buyers points
Appraisal fees
Which of the following statements violates the federal Truth in Lending Act?
Three bedroom two bath excellent FHA or VA financing available; total price $225,000
Four bedroom two baths easy terms total price $225,000
Three bedroom two bath, large lot with 10% down; total price $225,000
Three bedroom three bath owner will help Finance; total price $225,000
The Federal Real Estate Settlement Procedure Act, (RESPA) pertains to
All residential property
Residential properties with one to four units
Commercial properties only
Agricultural property
The Housing Financial Discrimination Act, prohibits, the discriminatory practice, known as
Red flagging
Red taping
Redlining
Red lighting
The maximum commission that can be charged by a licensee for negotiating a second trust deed of $7500 for a period of five years is
5%
10%
15%
Unlimited because this loan is not regulated by article 7
