Obtaining a Real Estate Loan Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is true regarding escrow accounts?

Question 2 2. Which of the following must occur before the real estate settlement date?

Question 3 3. Which of the following is a disadvantage of seller financing for the buyer?

Question 4 4. What is the definition of seller financing?

Question 5 5. What makes a hybrid loan different than a regular adjustable rate mortgage?

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Question 6 6. Which of the following best describes the timing of interest payments in a mortgage-style amortization schedule?

Question 7 7. Which of the following statements regarding the Truth in Lending Act and Regulation Z is true?

Question 8 8. Which of the following statements is true of the annual percentage rate?

Question 9 9. Tyrone just submitted a fully completed credit application for a loan. When must the creditor advise him of its determination?

Question 10 10. An individual brings a lawsuit against a creditor for alleged violations of ECOA and is successful. What's the maximum amount of punitive damages she can be awarded?

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Question 11 11. What is the difference between an interest rate and APR?

Question 12 12. What does a due-on-sale clause do?

Question 13 13. What law requires that lender to provide the borrower with a copy of the GFE within a specific amount of days?

Question 14 14. The Good Faith Estimate ___

Question 15 15. The S.A.F.E. Act was created to _____.

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Question 16 16. Which of the following is NOT a requirement to become a mortgage loan originator?

Question 17 17. In U.S. real estate lending, which of the following was the approximate range of mortgage loan interest rates in the 1980's?

Question 18 18. In U.S. real estate lending, why did lenders offer lower interest rates following the housing market crash of 2007-2008?

Question 19 19. Which of the following real estate financing documents contains the most information?

Question 20 20. What is the purpose of a lien?

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Question 21 21. Bob would like to double check his loan officer's math and know exactly how his mortgage payment was calculated. His mortgage principal is $101,000. His annual interest rate is 4.0% He is taking out a 15 year loan. Apply the loan calculation formula of P { i(1 + i)^n } / { (1 + i)^n - 1 } to solve for his monthly payment.

Question 22 22. Why does a lender want to make sure a home does not have a high loan to value ratio?

Question 23 23. When must the lender provide the borrower with an Initial Escrow Statement?

Question 24 24. Which of the following must a seller typically have in order to offer seller financing?

Question 25 25. In what kind of amortization do the principal and the interest amounts remain constant with every loan payment?

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Question 26 26. Which two pieces of information must lenders disclose to borrowers under the Truth in Lending Act?

Question 27 27. The Equal Credit Opportunity Act is implemented through ____.

Question 28 28. Which of the following is true about amortization?

Question 29 29. When does a buyer receive a good faith estimate?

Question 30 30. MLO is an acronym for _____.

Obtaining a Real Estate Loan Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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