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Real Estate 13 Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

The buyers purchased a residence for $395,000, making a down payment of $79,000 and obtaining a loan for the balance. The loan is

a)

a nonconforming loan.

b)

a package mortgage.

c)

a balloon note.

d)

a purchase money mortgage.

2.

A buyer purchased a new residence from a builder for $350,000. The buyer made a down payment of $30,000 and obtained a $320,000 mortgage loan. The builder of the house paid the lender 3% of the loan balance for the first year and 2% for the second year. This represented a total savings for the buyer of $16,000. What type of mortgage arrangement is this?

a)

Open-end

b)

Package

c)

Blanket

d)

Buydown

3.

Which of the following is a participant in the primary mortgage market?

a)

Fannie Mae

b)

Ginnie Mae

c)

Credit union

d)

Freddie Mac

4.

One of the federal laws requiring disclosure to a loan applicant who is rejected for a loan on the basis of a credit report is

a)

the Real Estate Settlement Procedures Act.

b)

the Community Reinvestment Act.

c)

the Fair Credit Reporting Act.

d)

the Truth in Lending Act.

5.

States are required to license mortgage loan originators by

a)

HUD.

b)

the SAFE Act.

c)

FHA.

d)

the OCC.

6.

The conservatorship of Fannie Mae and Freddie Mac is the responsibility of

a)

the Federal Housing Finance Agency.

b)

the Federal Housing Authority.

c)

the Office of the Comptroller of the Currency.

d)

the Federal Reserve System.

7.

What is the source of the rules that govern the use of real estate advertisements in all media, if they include mortgage financing terms?

a)

Equal Credit Opportunity Act

b)

Fair Lending Act

c)

Community Reinvestment Act

d)

Regulation Z of the Truth in Lending Act

8.

A developer received a loan that covers five parcels of real estate and provides for the release of the mortgage lien on each parcel when certain payments are made on the loan. This type of loan arrangement is called

a)

the purchase money loan.

b)

the blanket loan.

c)

the package loan.

d)

the wraparound loan.

9.

Funds for FHA-insured loans are usually provided by

a)

the FHA.

b)

the Federal Reserve.

c)

approved lenders.

d)

the seller.

10.

Regulation Z generally applies when a credit transaction is secured by

a)

a commercial property.

b)

a residence.

c)

a business.

d)

an agricultural property.

11.

What is the position of a home equity line of credit (HELOC) in relation to the original lien?

a)

Equal

b)

Junior

c)

First in priority

d)

No relationship

12.

The buyers purchased a model home and all its furnishings and appliances by using

a)

a package loan.

b)

a blanket loan.

c)

a FHA-insured loan.

d)

a buydown.

13.

The primary activity of Freddie Mac is to

a)

guarantee mortgages with the full faith and credit of the federal government.

b)

buy and pool blocks of conventional mortgages.

c)

act in tandem with Ginnie Mae to provide special assistance in times of tight money.

d)

buy and sell VA and FHA mortgages.

14.

The federal Equal Credit Opportunity Act allows lenders to discriminate against potential borrowers on the basis of

a)

preferred neighborhood.

b)

marital status.

c)

country of national origin.

d)

amount of income.

15.

The buyers of a residence in Happy Hollow have a mortgage that allows them to borrow additional funds that will be secured by the home at any time. They have

a)

a closed-end loan.

b)

an open-end loan.

c)

a provisional loan.

d)

a fully adjustable loan.

16.

Programs to help families purchase or operate family farms are provided by

a)

Ginnie Mae.

b)

the Farm Service Agency.

c)

Fannie Mac.

d)

the Federal Housing Finance Agency.

17.

If a lender agrees to make a loan based on a 80% LTV, what is the amount of the loan if the property appraises for $114,500 and the sales price is $116,000?

a)

$83,200

b)

$91,300

c)

$91,600

d)

$92,900

18.

The document that sets forth the maximum loan guarantee to which a veteran is entitled is

a)

the funding statement.

b)

the certificate of eligibility.

c)

the certificate of reasonable value.

d)

the certificate of discharge.

19.

The law that requires lenders to find ways to help meet the housing needs of those of low and moderate incomes is

a)

the Dodd-Frank Act.

b)

the Equal Credit Opportunity Act.

c)

the Community Reinvestment Act.

d)

the Real Estate Settlement Procedures Act.

20.

Which of the following requires that all advertising that references mortgage financing terms contain certain disclosures?

a)

Equal Credit Opportunity Act

b)

Fair Housing Act

c)

Community Reinvestment Act

d)

Truth in Lending Act (Regulation Z)