Course 11 Practice Test

Question 1

Who does not participate in the closing?

The borrower
The underwriter
HUD counsel
HUD Multifamily Regional Director

Answer 1

The underwriter

Question 2

What will occur if it is assumed that HUD has granted an approval without written confirmation?

Expediate the closing
Render the organizational documents inaccurate
Impact securing insurance
Impede the closing

Answer 2

Impede the closing

Question 3

A resolution identifying who will sign on behalf of the borrower, is provided by:

Underwriter
Lender
HUD
Borrower

Answer 3

Borrower

Question 4

An easement between adjacent property owners for the sharing of amenities is a:

Standard utility easement
Amenity easement
Reciprocal easement
Property easement

Answer 4

Reciprocal easement

Question 5

The title policy is issued at:

At the time of application
At the closing
At the time of Firm Commitment
By the time the loan is presented to the investment committee

Answer 5

At the closing

Question 6

Which of the following information is contained in the note?

Late charges
The interest amount
Prepayment terms
All of the above

Answer 6

All of the above

Question 7

Firm commitments for 223(f) deals are issued for:

15 Days
30 Days
60 Days
90 Days

Answer 7

60 Days

Question 8

Which is not a primary concern of HUD with regard to borrower organization?

Term of entity
Single person/single asset entity
Borrower authorized to enter into transaction
Geographic location of the main office

Answer 8

Geographic location of the main office

Question 9

What is the one closing document the underwiter is required to review to confirm accuracy and that it conforms to the underwriting?

Title policy
Survey
Settlement Statement
Subordination Agreement

Answer 9

Settlement Statement