MLS2

Question 1

The APN is used to aid in the assessment of property for:

Answer 1

tax collection

Question 2

In most states, the only government official involved in a nonjudicial foreclosure is the

Answer 2

county recorder

Question 3

Jack defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Jack’s house sold for $29,000 and the unpaid balance of his loan is $40,000. What must the lender do to recover the $11,000 Jack still owes?

Answer 3

Seek a deficiency judgment

Question 4

A promissory note would usually contain each EXCEPT:

Answer 4

Physical description of the collateral.

Question 5

Foreclosure would terminate:

Answer 5

Equitable right of redemption.

Question 6

The primary purpose of the estoppel certificate is to

Answer 6

verify the loan payoff amount

Question 7

The primary components of an ARM that effects the interest rate adjustments include the

Answer 7

index, margin, adjustment interval, interest rate caps, and payment caps

Question 8

The basic difference between an FHA and a VA loan is:

Answer 8

FHA insures loans, VA guarantees them.

Question 9

The primary participants that provide sources of funds in the financing of real estate include

Answer 9

savings and loan associations, commercial banks, credit unions, mortgage bankers, mortgage brokers, private individuals, and government programs Correct

Question 10

VA guaranteed loans (lending sources) are made by

Answer 10

private lenders

Question 11

TILA gives consumers the right to cancel certain credit transactions that involve a

Answer 11

lien on a consumer’s principal dwelling

Question 12

Mortgage Bankers originate mortgage loans and resells them to

Answer 12

secondary mortgage lenders like Fannie Mae or Freddie Mac

Question 13

How to calculate the dollar amount paid for a number of points:

Answer 13

.01 times the number of points times the base amount

Question 14

Freddie Mac’s mission is to

Answer 14

to expand the secondary market for mortgages in the United States

Question 15

The Equal Credit Opportunity Act (ECOA) makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of

Answer 15

race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract)

Question 16

FannieMae, formerly known as the Federal National Mortgage Association (FNMA) is a Government Sponsored Enterprise (GSE) created in 1938, to expand the flow of mortgage money by creating a

Answer 16

secondary market

Question 17

Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving

Answer 17

a federally related mortgage loan

Question 18

The primary distinction(s) between the primary and secondary mortgage market is:

Answer 18

The secondary market is fundamentally a holding or warehousing process.

Question 19

The types of mortgages usually fit into three descriptive categories

Answer 19

FHA, VA and conventional

Question 20

The secondary market is a source for the

Answer 20

purchase and sale of mortgages

Question 21

The National Housing Act of 1934 created the

Answer 21

Federal Housing Administration and the Mutual Mortgage Insurance Fund

Question 22

A mortgage bond is a bond secured by a

Answer 22

mortgage on one or more assets

Question 23

The balance paid by the buyer on closing is paid to

Answer 23

: the closing agent

Question 24

The state documentary stamp tax is calculated at the rate of

Answer 24

$0.35 per $100.(or fraction thereof) of the total amount of the note

Question 25

Prorate means

Answer 25

dividing expense between buyer and seller

Question 26

On the buyers statement which below would be a debit to the buyer

Answer 26

intangible tax on a new mortgage

Question 27

The state intangible tax, on new mortgages only, is

Answer 27

2 mills ($.002)

Question 28

The MOST important understanding of the vacancy rate is:

Answer 28

To indicate how much movement there is in the market.

Question 29

Which of the following is NOT a demand factor?

Answer 29

Availability of skilled workers

Question 30

Cap rate forumula

Answer 30

net operating income/property asset value

Question 31

The gross rent multiplier uses:

Answer 31

Sale price and monthly rental rates.