2.8

Question 0

The _______ is the Settlement Statement that a buyer receives with the actual settlement costs.

Answer 0

HUD-1

Question 1

The _______ is a disclosure form that gives an estimate of settlement costs.

Answer 1

Good Faith Estimate (GFE)

Question 2

The _____ is the name of the consumer protection act that eliminates kickback and referral fees for settlement services.

Answer 2

Real Estate Settlement Procedures Act (RESPA)

Question 3

Under Regulation Z, disclosure must be made of _______.

Answer 3

Credit terms

Question 4

Under Regulation Z, disclosure must be made of finance charges, APR, total number of payments, total sales price, and _______.

Answer 4

Amount Financed

Question 5

________ is when a borrower recieves the HUD-1 Settlement Statement.

Answer 5

One day before settlement

Question 6

RESPA is a consumer protection statute that covers loans secured with a mortgage placed on residential properties consisting of ______ number of units.

Answer 6

One to four

Question 7

_______ enforces RESPA.

Answer 7

HUD

Question 8

The two main purposes of RESPA are to help consumers shop for settlement services and to _______.

Answer 8

Eliminate kickbacks

Question 9

The ______ enforces the Fair Credit Reporting Act (FCRA).

Answer 9

Federal Trade Commission

Question 10

_______ is the term for a refusal to offer loans to certain areas of a city.

Answer 10

Redlining

Question 11

The Good Faith Estimate (GFE) is to be given to the borrower within ______ business days from loan application.

Answer 11

3

Question 12

According to _______ the loan length may be advertised to a consumer in number of years or months.

Answer 12

Regulation Z

Question 13

According to _______ the simple interest rate may not be advertised to consumers more conspicuously than the annual percentage rate (APR).

Answer 13

Regulation Z

Question 14

According to _____ the abbreviation APR should appear in capital letters.

Answer 14

Regulation Z

Question 15

The _______ is an act designed to promote accuracy and ensure the privacy of the information used in consumer credit reports.

Answer 15

Fair Credit Reporting Act (FCRA)

Question 16

When you sell your primary residence as a single owner, you can make a $______ profit before you owe any capital gains taxes.

Answer 16

$250,000

Question 17

_______ are payments that a homeowner CANNOT deduct from income taxes.

Answer 17

Principle mortgage payments

Question 18

True or False:

RESPA rules cover most loans, assumptions, refinances, property improvement loans, ad equity lines of credit.

Answer 18

True

Question 19

True or False:
RESPA requires disclosures to be given to borrowers at the time of the loan application, and before and at the time of closing.

Answer 19

True

Question 20

True or False:

The terms “settlement” and “closing” can be used interchangeably.

Answer 20

True

Question 21

The purpose of _______ is to eliminate service provider kickbacks.

Answer 21

RESPA

Question 22

The purpose of ____ is to help consumers become better shoppers.

Answer 22

RESPA

Question 23

The purpose of _______ is to reduce unnecessary lending costs.

Answer 23

RESPA

Question 24

The term “settlement” can be used interchangeably with ______.

Answer 24

Closing

Question 25

When a borrower applies for a loan, the lender must furnish a ______.

Answer 25

Good Faith Estimate (GFE)

Question 26

________ gives you the most protection against losses resulting from title defects.

Answer 26

Owner’s title insurance

Question 27

True or False:
Since a life estate ends at death, and because the owner of the life estate cannot leave it to his/her heirs, a life estate is not an estate of inheritance.

Answer 27

True

Question 28

______ is a pending law suit associated with property.

Answer 28

Lis pendens

Question 29

A mortgagee’s title insurance policy covers the _______.

Answer 29

Lender

Question 30

The mortgagee is the ____________.

Answer 30

Lender

Question 31

The morgagor is the _________.

Answer 31

Property owner

Question 32

When a single person owns real estate, it is called ________.

Answer 32

Tenancy in Severalty

Question 33

If two unrelated people purchase a property and want to make sure that if one of them dies, the deceased interests will go to his/her heirs they should hold the property as _________.

Answer 33

Tenants in common

Question 34

_________ is a type of ownership structure that automatically vests to the surviving owners.

Answer 34

Joint Tenancy

Question 35

_______ is a type of ownership structure that has inheritance rights.

Answer 35

Tenants in common

Question 36

When rights go to a surviving spouse, the ownership type is _______.

Answer 36

Joint tenancy

Question 37

_______ is the act of handing the deed over.

Answer 37

Alienation

Question 38

The ________ signs the deed.

Answer 38

Seller

Question 39

________ is the type of deed that is most desirable for a buyer.

Answer 39

Warranty deed

Question 40

_______ is the type of deed that will hold the property by force os law rather than by title.

Answer 40

Bargain and sale deed

Question 41

The covenant that warrants the grantee will not be bothered by other claims of interest in the property is ________.

Answer 41

Quiet enjoyment

Question 42

True or False:

A built-in stove is considered real property.

Answer 42

True

Question 43

“Chattel” is another term for __________.

Answer 43

Personal property

Question 44

True or False:

In order to make a deed valid, only the grantors need to sign it.

Answer 44

True