Học Thi Real Estate License ở California: Introduction to Real Estate Finance 1. The Truth in Leding Act is part of the: Business and Professions Code Uniform Commercial Code none of these Federal Consumer Protection Act None 2. A lender, in evaluating a prospective loan, should not consider: the relationship of appraisal to loan amount borrower's FICO score borrower's income is from public assistance the percentage of the loan down payment None 3. A broker is the owner of the escrow company that handles most of the office business. As to the escrow company: it cannot pay salespersons referral fees it must operate as a separate business it is a controlled business arrangement all of the above None 4. A loan that would appeal most to a young person whose income is starting to increase would be: an ARM a GPM a SAM none of these None Hint 5. A disadvantage of a land contract to a buyer is: all of these continued liability even if interest is transferred difficulty in borrowing on equity the danger of not obtaining clear title when paid up None 6. Ther person signing an assignment of a land contract is: the vendee the lessor both the vendor and the vendee the vendor None 7. A mortgagee foreclosing would first: give three months' notice of default publish a notice of foreclosure start an action in court give a 90-day notice of default None Hint 8. A straight loan refers to: a loan in which only interest is paid, with the principal paid at the due date an amortized loan a hard-money loan a loan without a balloon payment None Hint 9. For a trust deed to be negotiable, it must be: both a and b neither a nor b signed by the trustor acknowledged None Hint 10. A release clause would most likely appear in: a fictitious mortgage a public report a blanket encumbrance a subordination statement None Hint 11. Under a deed of trust the: beneficiary retains possession trustee holds equitable title trustor signs a note trustor has legal title None 12. Which of the following is not an element of a mortgage? alienation security note redemption None Hint 13. Upon default of a buyer on land contract, the seller would: sue for damages or specific performance have the trustee foreclose file a lis pendens action file a quiet title action None 14. The payments of the buyer under a land contract include taxes and insurance. The seller: none of these must keep tax and insurance money in a trust account can charge up to five percent as a collection charge cannot have a final balloon payment None 15. When the vendor and vendee sign a real property sales contract: vendee has no title interest vendee obtains equitable title title passes to the trustee for the benefit of the benediciary title passes from vendor to vendee None Hint 16. A trust deed foreclosed as a mortgage would be foreclosed by: the municipal court the court of appeals the superior court none of these None Hint 17. A trustor is to a beneficiary as: a trustee is to a buyer a seller is to a buyer a borrower is to a lender an escrow agent is to a seller None 18. The beneficiary of a trust deed is most likely a: borrower bank trustee buyer None Hint 19. Upon payment of a trust deed in full and on demand of the trustor, the trustee must give a deed of reconveyance: within 60 days immediately within 21 days within 15 days None Hint 20. A loan's index rate is now at 5 1/4 percent. If the margin is 2.4 percent, the loan's interest should be: 2.4 percent 5.25 percent 3.25 percent 7.65 percent None Hint 21. The prepayment penalty on a pay off for a three-year-old conventional residential loan would be based on the: current loan balance original purchase price current loan balance less 20 percent of the original loan amount original amount None 22. The Federal Reserve Board wants to tighten the money supply. What action might it take? sell government bonds on the open market raise the amount of reserves required for member banks raise the discount rate for member banks all of these None Hint 23. To be relieved of the primary responsibility of a loan, a seller must find a buyer: who will buy on land contract willing to subordinate who will assume the loan who will purchase subject to the loan None Hint 24. Which of the following clauses can be disregarded by a trustor? an alienation clause none of these an "or more" clause a clause against recording None Hint 25. You would find a subordination clause in: grant deeds quitclaim deeds trust deeds none of these None Hint 26. The seller under a real property sales contract may not: none of these use an address rather than a legal description sell his or her interest encumber the property None Hint 27. Loan payments based on a 20-year amortization schedule also require that the loan be paid in full within 10 years. the loan would be considered a partiablly amortized loan the loan would be considered an open-end mortgage the borrower can disregard the prepayment requirement the loan would be considered a term loan None Hint 28. A right of possession and equitable title would be held by the: trustee buyer on a land contract beneficiary seller on a land contract None Hint 29. Which party to a mortgage signs the note? mortgagor trustee beneficiary mortgagee None Hint 30. A lender advanced credit to a consumer and took a lien on the consumer's home even though the cosumer didn't have sufficient income to pay the debt. This is an example of: an open mortgage predatory lending a package mortgage subordination None 31. An individual working for a bank is paid for every real estate loan she arranges. She must: neither a nor b be a real property security dealer both a and b have a real estate license None Hint 32. The unsury law for individuals does not apply when: the seller finances the buyer on a home sale neither a nor b the loan is made through a mortgage loan broker either a or b None Hint 33. The vendor-vendee relatioship under a land contract is most similar to the relationship: trustor-trustee trustee-beneficiary mortgagee-mortgagor beneficiary-trustee None Hint 34. Which of the following are related to each other? points, interest interest, taxes assessment, book value taxes, insurance None Hint 35. A RESPA disclosure statement would least likely be required for a loan made: for a purchase-money trust deed by a commercial bank by a savings and loan by a mortgage company to be sold to FNMA through a licensed California loan broker None Hint 36. A trustor under a trust deed: holds the note holds naked legal title makes the loan signs the note None Hint 37. A land contract clause prohibits any prepayment. the vendee can prepay only during the first year the contract is void, since the clause is illegal the vendee cannot prepay the vendee can ignore the clause after one year None Hint 38. The Truth in Lending Law is enforced by the: none of these Real Estate Commissioner Federal Trade Commission State Attorney General None 39. An introductory rate of interest is 3.25 percent less than the index rate of 4.25 percent and the 2.25 percent margin would set the introductory rate at: 7.75 percent 0.75 percent 3.25 percent 6.5 percent None Hint 40. A blanket encumbrance would have the greatest benefit to the: lender title insurance company trustee trustor None Hint 41. A lender was required to contact a borrower 30 days prior to a notice of default. This notification was to: explore options to avoid foreclosure comply with RESPA alert other creditors meet Truth-in-Lending requirements None 42. A broker has a written agreemnet giving you 60 days to arrange a loan for $1,200. the broker is in violation of Article 7 of the Real Estate Law none of these is true the deal is all right if the broker is a real property securities dealer the broker may not deal in loans under $8,000, in accordance with Article 7 None Hint 43. A holder of a second trust deed reveives notification of default on the first trust deed. He or she would probably: none of these wait until the publication period to see if the trustor will make the payments wait for foreclosure and try to buy the property at a reduced price make payments on the first trust deed and foreclose on the second trust deed None Hint 44. The person who would wish to record a land contract would be the: beneficiary trustee vendee vendor None Hint 45. Which gives the most protection to a property owner in default? second trust deed trust deed mortgage contract of sale None Hint 46. By calling in a loan, the lender: shortens the term of the loan is giving a new loan none of these accelerates the loan payments None Hint 47. The advantages to a borrower of a biweekly mortgage payment over a monthly payment include: less total interest both a and b shorter amortization period neither a nor b None 48. A trust deed would most likely be discounted by: the beneficiary none of these the trustee the trustor None Hint 49. A buyer purchases a $10,000 trust deed for $6,400. The trustor defaults. The most that the buyer of the trust deed can recover at the trustee's sale is: $10,000 nothing $6,400 the amount is limited only by the sale price None Hint 50. When interest rates are high, banks increase points on some loans to: enhance the competitive position of the loans stabilize the risks stimulate the secondary mortgage market increase the loan-to-value ratio None Hint 51. The right of rescission under Truth in Lending would apply to a(n): none of these home equity loan purchase-money loan agricultural loan None Hint 52. In a subdivision, the largest number of properties that can be covered by a trust deed without a blanket encumbrance is: none of these two three one None 53. A recorded trust deed referred to in other trust deeds is most likely: a senior encumbrance a declaration of restrictions a fictitious trust deed none of these None Hint 54. The nominal rate of interest would be: the rate stated in the note one percent or less none of these the legal rate of interest None 55. When a vendee under a land contrac defaults, the vendor to clear title would commence a: judicial foreclosure writ of replevin trustee sale quiet title action None 56. In periods of tight money: interest rates go up interest rates and money availability are unrelated none of these interest rates go down None Hint 57. The release clause in a trust deed requires payments higher than they should be considerin the value of the property released. Why? to reduce the danger of default both a and b neither a nor b to make certain that the remaining security is adequate None 58. A clause in a trust deed that allows a trustor to refinance another trust deed without relegating it to a junior priority is a(n): subordination clause exculpatory clause refinance clause subrogation clause None 59. Selling a home under an existing blanket trust deed requires that the trustee give a(n): partial reconveyance new deed of trust contract of sale assignment of interest None Hint 60. Real estate used as security for a loan would be: pledged alienated none of these hypotecated None Hint 61. A trust deed is foreclosed by the: trustee trustor beneficiary sheriff None Hint 62. In the absence of any other economic changes, raising the points to be paid on a loan should: increase the risk reduce the risk increase the payments reduce the interest None Hint 63. An adjustable-rate mortgage has an index that has risen from 4.5 percent to 11 percent with a margin of 2.5 percent, but the bank is charging only 12 percent interest on the loan. This lower interest is due to: usury the interest cap amortization Article 7 None Hint 64. Deficiency judgments are not available to a foreclosing mortgagee if: the value of the property equals or exceeds the amount of the loan foreclosure is by sale the mortgage was a purchase-money mortgage any of these None 65. A beneficiary sells a note secured by a trust deed. The beneficiary must: record the trustee's deed record a satisfaction record the deed of reconeyance record the assignment None Hint 66. An alienation clause in a trust deed prohibits: modifying use of the property assumption of the trust deed prepayment of the trust deed sale of the property None Hint 67. A trust deed note showed zero interest. The IRS held that the beneficiary should pay taxes as if a reasonable rate of interest had been received. This rate set by the IRS is known as: usury rate the APR imputed interest nominal rate None 68. The Real Estate Settlement Procedures Act provides for violation penalties of: up to one year in jail both a and b a fine of up to $10,000 loss of real estate license None 69. To pay for an operation, a man obtains a first trust deed on his house. One day after completion of the loan, he wishes to rescind the transaction. he may not rescind this loan one may never rescind a properly completed loan he has up to midnight of the third business day following the loan to rescind none of these is true None Hint 70. Which of the following is not required when a trust deed is paid up? the trustor's signature a deed of reconveyance none of these the trustee's signature None Hint 71. A land contract is most similar to a: bailment security interest mortgage trust deed None Hint 72. Total foreclosure time under a trust deed most nearly approaches: one year four months three months 15 months None Hint 73. A second trust deed can be distinguished from a first trust deed by: none of these the heading of the instrument the information contained in the note the time and date of recording None 74. The longer the loan (all other things being equal): the lower the interest the higher the payment the higher the interest the lower the payment None Hint 75. Interest paid on principal and interest is: compounded interest none of these straight interest simple interest None Hint 76. The basic obligation of a real estate loan in California is evidenced by: a trust deed the mortgage the note the bill of sale None Hint 77. A security agreement for personal property is filed with: County Appraiser Department of Real Estate Secretary of State Comptroller General None 78. Consideration exists: among the trustee, the beneficiary, and the trustor between the trustor and the beneficiary none of these between the trustor and the trustee None Hint 79. A mortgage would be released by: satisfaction of the mortgage any of these a deed of reconveyance payment in full None Hint 80. On an amortized loan, each payment would differ from the previous payment in that: the amount of the payment would decrease the amount applying to the principal would decrease each month the amount applywing to the interest would increase each month none of these None 81. Who would sign a request for reconveyance? the beneficiary the trustor a new purchaser the trustee None Hint 82. A real estate broker made a home loan at 30 percent interest. The broker: has violated the usury law has placed her license in jeopardy both a and b neither a nor b None Hint 83. RESPA would apply to a: purchase money loan for a residential lot purchase money loan to purchase a duplex purchase loan for a five unit apartment building loan to refinance a single family home None Hint 84. As to loan brokers, which of the following is true? commissions are regulated for all broker loans balloon payments are not allowed credit life and disability insurance can be required of borrowers none of these is true None 85. In a sale transaction, which party is most likely responsible for a prepayment penalty? escrow lender seller buyer None 86. As to points, which of the following is true? if they cover loan charges for services, they are not a deductible interest expense points that are prepaid interest are deductible to the purchaser all of these points paid by the seller are considered sales costs None 87. Who would most likely benefit by a subordination clause in a trust deed? the trustor the trustee the beneficiary the county tax assessor None Hint 88. A prepayment penalty would be inconsistent with: an alienation clause neither a nor b an "or more" clause both a and b None Hint 89. When monthly amortized mortgage payments are equal, the interest charged is: accelerated simple compound escalated None Hint 90. A request for notification of default would be most desired by the: trustor beneficiary of a second trust deed beneficiary of a first trust deed trustee None Hint 91. A broker's commission for negotiating a loan is not subject to Article 7 limitation if the loan is: a first trust deed of $30,000 a second trust deed of $20,000 neither a nor b both a and b None Hint 92. A borrower has a loan where the borrower can make monthly payments less than the interest that is accruing. This would be regarded as a(n): hybrid loan straight loan option ARM 80/20 loan None 93. A deficiency judgment is possible if there is: foreclosure by court action a purchase-money mortgage foreclosure by sale provision none of these None 94. Proceeds from a trustee's sale go to: the first trust deed, and the balance to junior encumbrance holders none of these the cost of the sale, and the balance to the foreclosing beneficiary the cost of the sale, then the first trust deed, then junior encumbrances, and the balance to the trustor None 95. As to beneficiary statements, which of the following is true? neither a nor b failure to provide a statement within 20 21 days of receipt can result in $300 damanges both a and b there can be a charge up to $60 None 96. As to real property sales contracts for land or one to four residential units, which of the following is true? neither a nor b the seller can prohibit prepayment for up to 12 months following the sale both a and b the buyer cannot waive his or her right to prepay None 97. Which of the following are synonymous? construction loan, take-out loan obligatory advance, take-out loan permanent financing, take-out loan open-end loan, take-out loan None Hint 98. To curb inflation, the government can: lower FHA and VA rates increase taxes lower the prime rate increase spending for capital improvement None Hint 99. Points go up when the going interest rate increases above a fixed lending rate. Assume that each percentage point increase in the lending rate equals 6 points. An interest rate increase from 7 1/4 percent to 8 percent would result in what decrease of points? 4 points 6 points 4.5 points 3 points None Hint 100. A statement that says "In the event of sale, the entire balance is due and payable" would be: both a and b neither a nor b an alienation clause a type of acceleration clause None Hint 101. Balloon payments are not allowed for an owner-occupied residence under Article 7: for trust deeds of less than six years for first trust deeds for purchase-money loans in all cases None 102. The beneficiary must give consent before the trustor can: agree to restrictions on land use settle a boundary dispute grant an easement over the property any of these None Hint 103. An endorsement on a note said "without recourse." What kind of endorsement is it? qualified blank restrictive special None 104. Truth in Lending disclosure when advertising a graduated payment loan would require the: license the lender operates under property address schedule of payments name in which title is presently held None 105. A straight note would not be: none of these amortized used for a personal loan used in conjunction with a trust deed None Hint 106. A broker negotiated a three-year second trust deed for $20,000. He charged a $2,000 fee. The fee is: neither a nor b usurious voidable both a and b None Hint 107. Making biweekly payments on a mortgage of one-half the monthly payment will result in: increasing the amortization period 13 monthly payments each year a final balloon payment negative amortization None 108. A lender made a loan secured by borrower's home without regard to the borrower's ability to make the payments. This would be regarded as: a balloon payment negative amortization predatory lending usury None 109. Discount points are: considered interest when charged by an individual not allowed on VA loans all of these raised by lenders when they raise their interest rate None Hint 110. A trust deed would likely be in default when: the trustor fails to maintain insurance coverage any of these the trustor commits waste on the premises the trustor is delinquent in tax payments None 111. During the one year redemption period of a mortgagor in default: both a and b the mortgagee is not entitled to possession neither a nor b the mortgagee can sue for rent None 112. A loan amortization table would show: interest payments principal payments principal, interest, taxes, and insurance payments principal and interest payments None 113. Beth, a licensee, sells a real property sales contract for Ricardo, the vendor. Beth is responsible for making certain the contract is recorded: within five working days immediately within 30 days within 10 working days None 114. A packaged mortgage is a loan in which: none of these personal property is included in the real estate loan payment includes principal, interest, taxes, and insurance similar loans are given for each home in a subdivision None 115. Real property would not be: pledged mortgaged alienated encumbered None Hint 116. A real property sales contract must show: all of these the number of years required to pay it off the legal description all existing encumbrances None 117. Warehousing is becoming extremely important in the field of finance. It refers to: interim financing increases in savings accounts repossessions defaulted mortgages None Hint 118. A deed of reconveyance moves title from: the trustee to the trustor the trustor to the trustee none of these the beneficiary to the trustor None 119. The instrument that is least likely to be recorded is the: note securing a loan given with the trust deed land contract trustee's deed satisfaction of mortgage None Hint 120. A mortgage Loan Disclosure Statement is for the protection of the: broker lender Real Estate Commissioner borrower None Hint 121. A financing statement is removed from record by: final payment of the debt filing a termination statement a notice of abandonment a reconveyance deed None Hint 122. Large payments to a builder as work progresses would most likely be: obligatory advances a take-out loan an open-end loan amortized payments None Hint 123. If two lenders share in different portions of the same loan, the loan would be a: participation loan take-out loan sharing-appreciation loan piggyback loan None Hint 124. The disclosure statement required under the Truth-in-Lending Law is most similar to: an MOG permit an option-listing disclosure disclosure statements in a public report Mortgage Loan Disclosure Statement under Article 7 of the Real Estate Law None Hint 125. The power of sale in a trust deed would be given by: the trustor to the trustee the beneficiary to the trustee the trustee to the beneficiary the beneficiary to the trustor None 126. Naked legal title refers to a: trustor trustee title insurance company beneficiary None Hint 127. A mortgage and a trust deed are similar in that: both are three-party documents neither transfers title none of these both are personal property None Hint 128. Secured collaterally refers to a: loan secured by another loan junior lien loan secured by personal property piggyback loan None Hint 129. As to trust deeds, which of the following is false? none of these a trust deed may be foreclosed by court action a trust deed is security for a note trust deeds convey title None 130. A borrower receives a monthly check from the lender. This is most likely a(n): rollover loan annuity reverse mortgage none of these None 131. A seasoned loan is: a loan with a payment history a first encumbrance none of these a long-term loan None Hint 132. Inflation is best evidenced by a(n): tight money market increase in points by lenders increase in the cost-of-living index change in interest rates None 133. A trust deed is a(n): lien encumbrance negotiable instrument both a and b None 134. A broker advertised the APR, but did not include any other financing terms. Was the ad proper? yes no, because it violated truth in lending yes, if the broker indicated where details as to financing could be obtained. no, it was a RESPA violation None Hint 135. Janet assumes a trust deed from Bill. both Janet and Bill have primary liability only Janet is liable Janet is primarily liable, and Bill has secondary liability Bill is primarily liable, and Janet has secondary liability None 136. An adjustable-rate loan is pegged at an interest rate above a loan index. This increase above the index is knows as the: cap margin teaser rate annual percentage rate None 137. Promotional notes, as used in real property securities, do not include a note that has term of: 28 months 37 months 31 months 24 months None Hint 138. To subordinate means: to lease to subrogate to be secondary to sell None Hint 139. Hypothecate means: to pledge to sell to give a thing as security without giving possession to substitute None Hint 140. Regarding financial institutions, deregulation means: examining and enforcement responsibilities of regulators have been relaxed goverment controls no longer apply to financial institutions the amount of interest paid on savings accounts is no longer regulated financial institutions can no longer respond to market conditions None Hint 141. The collection of interest in advance is known as: loan discountency usury an illegal loan a discount loan None Hint 142. When buying a house, a person would not receive: a quitclaim deed a grant deed any of these a reconveyance deed None Hint 143. After the three-month notification of default: the trustee may sell the publication period begins the sheriff's sale is made foreclosure is completed None 144. Equity financing refers to: borrowing on the difference between property value and liens purchase-money loans cash purchases financing that is fair None Hint 145. A basic difference between trust deeds and mortgages is: amortization subordination acceleration redemption None Hint 146. What is the highest commission a broker can charge in negotiating an $8,000 first trust deed for 2 1/2 years? there is no limit five percent 10 percent 15 percent None Hint 147. A borrower makes $100 amortized loan payments. the amount applying to the principal increases with each payment each payment has the same amount applying to principal none of these is true there will be a balloon payment None Hint 148. A clause in a trust deed calling for assignment of rents most likely would benefit the: trustee beneficiacy trustor purchaser None 149. Whihc law applies to federally related transactions? Holden Act RESPA Fair Credit Reporting Act Truth in Lending Act None 150. Article 5 of the Real Estate Law does not apply to: misleading advertising as to negotiation of loans negotiation of a loan in connection with a sale transactions in trust deeds gifts as inducements for making loans None
