Course 5 Practice Test

Question 1

What is part of the underwriter’s role in the review physical condition of the property?

Answer 1

Identify the assessor’s opinion of remaining useful life of the property and compare this to the appraiser’s opinion of remaining economic life.

Question 2

The following underwriter risks: Deferred Maintenance, Routine Maintenance, Capital Replacement and Renovation can all be categorized under:

Answer 2

Elements of Property Condition

Question 3

The American with Disabilities Act (ADA):

Answer 3

Covers public accommodations, not the inside of dwelling units; applies whether there is a HUD loan or not.

Question 4

When estimating the cost of repairs an underwriter will:

Answer 4

Decide if the estimates are acceptable and where they are coming from.

Question 5

A property must abide by applicable building codes and accessibility laws and are considered which of the following?

Answer 5

Minimum Property Standards

Question 6

The reserve for replacement schedule is to be completed by which of the following:

Answer 6

Underwriter

Question 7

The estimated time period for the reserve for replacement schedule is:

Answer 7

Lessor of 20 years or 2 years plus remaining term of insured mortgage

Question 8

What defines Estimated Useful Life (EUL)?

Answer 8

Period of years in which a property of average condition of use may be expected to remain serviceable for its intended purpose.

Question 9

The Financial Factors Form of Assessment requires the underwriter to determine:

Answer 9

Inflation rates
Interest rates
Annual deposit
Initial Deposit