Question 1

In analyzing a mortgage loan application, a lender considers job stability, income adequacy and sales price.

Accepted Answer

A) True 
 B)False

Question 2

Regulation Z deals with annual percentage rates.

Accepted Answer

A) True 
 B)False

Question 3

According to regulation Z, easy 11% mortgage assumption would be allowed without further disclosure in an advertisement to sell a residence.

Accepted Answer

A) True 
 B)False

Question 4

Truth-in-lending laws were created primarily to protect lenders.

Accepted Answer

A) True 
 B)False

Question 5

Choose the one most appropriate answer for each.
-the amount of money the policyholder would receive if the policy was surrendered to the insurance company

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 6

A borrower has a limited right of ____________________ in a credit transaction.

Accepted Answer

The answer of A borrower has a limited right of...

Question 7

Truth in lending laws require a lender to provide figures for all EXCEPT

Accepted Answer

A)  loan amount. 
B)  interest rates. 
C)  maintenance costs. 
D)  annual percentage rate. 
A)  loan amount. 
B)  interest rates. 
C)  maintenance costs. 
D)  annual percentage rate.

Question 8

The Fair Credit Reporting Act gives individuals several rights EXCEPT

Accepted Answer

A)  correct any errors on their report. 
B)  inspect their file at a credit bureau. 
C)  delete any reference to bankruptcy. 
D)  make explanatory statements to supplement the file. 
A)  correct any errors on their report. 
B)  inspect their file at a credit bureau. 
C)  delete any reference to bankruptcy. 
D)  make explanatory statements to supplement the file.

Question 9

Regulation Z requires a lender to disclose the dollar amount of any finance charge.

Accepted Answer

A) True 
 B)False

Question 10

Choose the one most appropriate answer for each.
-assets that may require months to sell and convert to cash

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 11

Job stability, income adequacy and credit rating of the borrower are the most important factors that a lender considers in analyzing a loan application.

Accepted Answer

A) True 
 B)False

Question 12

____________________ loans have risk-based pricing and rates are not quoted.

Accepted Answer

The answer of ____________________ loans have risk-based pricing and rates...

Question 13

Choose the one most appropriate answer for each.
-the annual percentage rate as calculated under the federal Truth-in-Lending Act by combining the interest rate with other costs of the loan

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 14

The Fair Credit Reporting Act gives individuals the right to correct any errors on their report, inspect their file at a credit bureau and delete any reference to bankruptcy.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following contains a trigger term under Regulation Z and requires further disclosure?

Accepted Answer

A)  "Assumable VA loan" 
B)  "Buy for less than $600 a month" 
C)  "Cash price, only $79,500" 
D)  "Rent for only $499 per month" 
A)  "Assumable VA loan" 
B)  "Buy for less than $600 a month" 
C)  "Cash price, only $79,500" 
D)  "Rent for only $499 per month"

Question 16

In analyzing a mortgage loan application, a lender considers all EXCEPT

Accepted Answer

A)  job stability. 
B)  income adequacy. 
C)  credit rating. 
D)  sales price. 
A)  job stability. 
B)  income adequacy. 
C)  credit rating. 
D)  sales price.

Question 17

The borrower's income, the appraisal, and the needs of the borrower are important to a mortgage lender when determining whether or not to make a real estate loan.

Accepted Answer

A) True 
 B)False

Question 18

Truth in lending laws were created primarily to protect

Accepted Answer

A)  consumers. 
B)  lenders. 
C)  beneficiaries. 
D)  mortgagees. 
A)  consumers. 
B)  lenders. 
C)  beneficiaries. 
D)  mortgagees.

Question 19

In evaluating the borrower's life insurance, the ____________________ is the amount of money the policy holder would receive if the policy were surrendered to the insurance company.

Accepted Answer

The answer of In evaluating the borrower's life insurance, the...

Question 20

Choose the one most appropriate answer for each.
-a federal law that requires certain disclosures when extending or advertising credit

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

Exam 11: The Loan and the Consumer

In analyzing a mortgage loan application, a lender considers job stability, income adequacy and sales price.

Regulation Z deals with annual percentage rates.

According to regulation Z, easy 11% mortgage assumption would be allowed without further disclosure in an advertisement to sell a residence.

Truth-in-lending laws were created primarily to protect lenders.

Choose the one most appropriate answer for each. -the amount of money the policyholder would receive if the policy was surrendered to the insurance company

A borrower has a limited right of ____________________ in a credit transaction.

Truth in lending laws require a lender to provide figures for all EXCEPT

The Fair Credit Reporting Act gives individuals several rights EXCEPT

Regulation Z requires a lender to disclose the dollar amount of any finance charge.

Choose the one most appropriate answer for each. -assets that may require months to sell and convert to cash

Job stability, income adequacy and credit rating of the borrower are the most important factors that a lender considers in analyzing a loan application.

____________________ loans have risk-based pricing and rates are not quoted.

Choose the one most appropriate answer for each. -the annual percentage rate as calculated under the federal Truth-in-Lending Act by combining the interest rate with other costs of the loan

The Fair Credit Reporting Act gives individuals the right to correct any errors on their report, inspect their file at a credit bureau and delete any reference to bankruptcy.

Which of the following contains a trigger term under Regulation Z and requires further disclosure?

In analyzing a mortgage loan application, a lender considers all EXCEPT

The borrower's income, the appraisal, and the needs of the borrower are important to a mortgage lender when determining whether or not to make a real estate loan.

Truth in lending laws were created primarily to protect

In evaluating the borrower's life insurance, the ____________________ is the amount of money the policy holder would receive if the policy were surrendered to the insurance company.

Choose the one most appropriate answer for each. -a federal law that requires certain disclosures when extending or advertising credit

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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