Question 1

The Truth in Lending Act covers credit extended for a loan secured by a car valued at $30,000.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following loans would be exempt from the disclosure requirements of the truth-in-lending laws?

Accepted Answer

A)  Commercial loans 
B)  Personal property loans in excess of $25,000 
C)  Financing extended to corporations 
D)  Consumer loans to natural persons 
A)  Commercial loans 
B)  Personal property loans in excess of $25,000 
C)  Financing extended to corporations 
D)  Consumer loans to natural persons B

Question 3

Choose the one most appropriate answer for each.
-Truth-in-Lending Simplification and Reform Act

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term S

Question 4

Choose the one most appropriate answer for each.
-the right that gives borrowers three days to back out after signing loan papers

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 5

As well as a borrower's assets, the lender will evaluate the borrower's ____________________.

Accepted Answer

The answer of As well as a borrower's assets, the...

Question 6

According to regulation Z, which of the following would be allowed without further disclosure in an advertisement to sell a residence?

Accepted Answer

A)  Easy 11% mortgage assumption 
B)  Take over an 11% loan 
C)  Assume an 11% annual percentage rate mortgage 
D)  Assumable 11% loan 
A)  Easy 11% mortgage assumption 
B)  Take over an 11% loan 
C)  Assume an 11% annual percentage rate mortgage 
D)  Assumable 11% loan

Question 7

The Federal Equal Credit Opportunity Act protects borrowers from discrimination based on sexual preference.

Accepted Answer

A) True 
 B)False

Question 8

With regard to truth in lending laws, which of the following is legally permissible to advertise, without further explanation?

Accepted Answer

A)  Only $1,000 down payment 
B)  Less than $500 per month 
C)  11% interest loan 
D)  APR 10% assumable 
A)  Only $1,000 down payment 
B)  Less than $500 per month 
C)  11% interest loan 
D)  APR 10% assumable

Question 9

Choose the one most appropriate answer for each.
-assets that are in cash or are readily convertible to cash in a few days

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 10

Generally, before a lender will approve a loan, the borrower must

Accepted Answer

A)  have sufficient funds for the down payment. 
B)  sign a statement if the borrower intends to occupy the property. 
C)  both a and b. . 
D)  neither a nor b 
A)  have sufficient funds for the down payment. 
B)  sign a statement if the borrower intends to occupy the property. 
C)  both a and b. . 
D)  neither a nor b

Question 11

The APR is

Accepted Answer

A)  usually lower than the interest rate. 
B)  made up of the interest rate combined with the other costs of the loan. 
C)  both a and b. 
D)  neither a nor b. 
A)  usually lower than the interest rate. 
B)  made up of the interest rate combined with the other costs of the loan. 
C)  both a and b. 
D)  neither a nor b.

Question 12

When borrowing money to buy a home, the borrower has the right of rescission

Accepted Answer

A)  within three business days, including Saturday. 
B)  within three business days, not counting Saturday. 
C)  within three years. 
D)  at no time. 
A)  within three business days, including Saturday. 
B)  within three business days, not counting Saturday. 
C)  within three years. 
D)  at no time.

Question 13

When borrowing money to buy a home, the borrower has the right of rescission.

Accepted Answer

A) True 
 B)False

Question 14

When making a mortgage loan application, borrowers are protected from discrimination based on marital status by the Fair Credit Reporting Act.

Accepted Answer

A) True 
 B)False

Question 15

Choose the one most appropriate answer for each.
-scoring system applied to a list of subjective factors that are relative in evaluating credit risks

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 16

Choose the one most appropriate answer for each.
-federal law giving an individual the right to inspect his or her file with the credit bureau and correct any errors

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 17

Choose the one most appropriate answer for each.
-loans that have risk-based pricing and are typically categorized from "A" to "F"

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 18

Choose the one most appropriate answer for each.
-transactions that are exempt from the lending disclosure requirement

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 19

Penalties for violation of the truth-in-lending laws include

Accepted Answer

A)  a fine of up to $5,000 and/or imprisonment for up to 1 year. 
B)  penalties up to twice the amount of the finance charge up to a maximum of $1,000. 
C)  Court costs, attorney fees, and actual damages. 
D)  all of the above. 
A)  a fine of up to $5,000 and/or imprisonment for up to 1 year. 
B)  penalties up to twice the amount of the finance charge up to a maximum of $1,000. 
C)  Court costs, attorney fees, and actual damages. 
D)  all of the above.

Question 20

In analyzing a mortgage loan application, it is illegal for a lender to consider

Accepted Answer

A)  job stability. 
B)  marital status. 
C)  income adequacy. 
D)  credit rating. 
A)  job stability. 
B)  marital status. 
C)  income adequacy. 
D)  credit rating.

Exam 11: The Loan and the Consumer

The Truth in Lending Act covers credit extended for a loan secured by a car valued at $30,000.

Which of the following loans would be exempt from the disclosure requirements of the truth-in-lending laws?

Choose the one most appropriate answer for each. -Truth-in-Lending Simplification and Reform Act

Choose the one most appropriate answer for each. -the right that gives borrowers three days to back out after signing loan papers

As well as a borrower's assets, the lender will evaluate the borrower's ____________________.

According to regulation Z, which of the following would be allowed without further disclosure in an advertisement to sell a residence?

The Federal Equal Credit Opportunity Act protects borrowers from discrimination based on sexual preference.

With regard to truth in lending laws, which of the following is legally permissible to advertise, without further explanation?

Choose the one most appropriate answer for each. -assets that are in cash or are readily convertible to cash in a few days

Generally, before a lender will approve a loan, the borrower must

The APR is

When borrowing money to buy a home, the borrower has the right of rescission

When borrowing money to buy a home, the borrower has the right of rescission.

When making a mortgage loan application, borrowers are protected from discrimination based on marital status by the Fair Credit Reporting Act.

Choose the one most appropriate answer for each. -scoring system applied to a list of subjective factors that are relative in evaluating credit risks

Choose the one most appropriate answer for each. -federal law giving an individual the right to inspect his or her file with the credit bureau and correct any errors

Choose the one most appropriate answer for each. -loans that have risk-based pricing and are typically categorized from "A" to "F"

Choose the one most appropriate answer for each. -transactions that are exempt from the lending disclosure requirement

Penalties for violation of the truth-in-lending laws include

In analyzing a mortgage loan application, it is illegal for a lender to consider

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

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