finance

Question 1

California is a title theory state

True or False

Answer 1

True

Question 2

With a deed of trust, title is given by the trustor to the trustee.

True or False

Answer 2

True

Question 3

The financing document that serves as evidence of the debt is the deed of trust

True or false

Answer 3

False

Question 4

A promissory note is a negotiable instrument

True or False

Answer 4

true

Question 5

Term loans offer interest-only payments until maturity

True or False

Answer 5

True

Question 6

A package mortgage includes real property as well as personal property as collateral

True or False

Answer 6

True

Question 7

One parcel is used as collateral in blanket mortgage

True or False

Answer 7

False

Question 8

Commercial banks prefer long-term financing

True or false

Answer 8

False

Question 9

Mortgage bankers act as intermediaries

True or false

Answer 9

False

Question 10

Mortgage brokers lend their own money

True or false

Answer 10

False

Question 11

Life insurance companies prefer long-term commercial and industrial participation loans

True or false

Answer 11

True

Question 12

FHA loans provide insurance to lenders against loss due to foreclosure

True or false

Answer 12

True

Question 13

Department of Veterans Affairs (VA)-guaranteed loans are available to those men and women who served in the U.S. armed forces to their spouses

True or false

Answer 13

True

Question 14

Mortgage brokers offer CalVet loans

True or False

Answer 14

False

Question 15

The evidence of the debt for a mortgage or a deed of trust is a promissory note

True or false

Answer 15

True

Question 16

Covenants included in a security instrument are causes of foreclosure

True or false

Answer 16

True

Question 17

A deed of trust is a two party instrument

True or False

Answer 17

False

Question 18

When a mortgage note is a paid, the mortgagee records a deed of reconveyance

True or False

Answer 18

False

Question 19

Regulation Z /Truth in lending promotes the informed use of consumer credit by requiring meaningful disclosures about the cost and terms or credit

True or False

Answer 19

True

Question 20

Annual percentage rate includes third-party costs

True or false

Answer 20

False

Question 21

The Real Estate Settlement Procedures Act prohibits kickbacks

True or False

Answer 21

True

Question 22

Discount points are charged by the lender to increase the lender’s yield

True or False

Answer 22

True

Question 23

Advertising by a mortgage loan broker must include a statement that the broker is licensed by the California Department of Real estate

True or False

Answer 23

True

Question 24

A broker is not allowed to lend his own funds

True or false

Answer 24

False

Question 25

The maximum commission that a broker can charge for negotiating or making a loan depends only on the amount of the loan True or false

Answer 25

False

Question 26

A California Finance lender is allowed to make loans with personal property as collateral True or false

Answer 26

True

Question 27

The Safe Act is a federal law that was provided for the licensing and registration of mortgage loan originators (MLOs) True or False

Answer 27

True

Question 28

MLOs must complete 20 hours of continuing education annually True or false

Answer 28

False