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About Liens & Title
Credit
Secondary Mortgage Market
Regulations
R.E. Finance Instruments
100
A statutory period of redemption gives the borrower the opportunity to: a) make up outstanding balance prior to the foreclosure sale b) make up outstanding balance after the foreclosure sale c) receive a moratorium on payments d) be released of all payments
make up outstanding balance after the foreclosure sale
100
George T. has a credit score of 680. The largest percentage of his credit score is based on: a) his payment history b) the amount he owes c) the length of his credit history d) the types of credit cards he uses
His payment history
100
Freddie Mac is currently: a) a government agency b) under conservatorship c) a subsidiary of the Federal Home Loan Bank System d) a company under control of the Federal Home Loan Bank Board
under conservatorship
100
Each individual account on deposit with a savings association is insured by the: a) SAIF b) FSLIC c) FHLB d) FDIC
d) FDIC
100
Although there are many types of interest in real property that may be used as security for a real estate loan, the most common is a: a) leasehold interest b) life-estate interest c) fee simple interest d) trade fixture
Fee simple interest
200
Which of the following best describes the lien theory? a) lender has equitable rights; borrower has legal rights b) Lender has legal rights; borrower has equitable rights c) Lender and borrower have equal legal rights d) Neither lender or borrower have legal rights
a) lender has equitable rights; borrower has legal rights
200
Which of the follow in NOT one of the national credit repositories most used today to obtain credit scores for prospective borrowers? a) FICO b) Experian c) Equifax d) TransUnion
a) FICO
200
When Fannie Mae was reorganized in 1954 to include private investors, mortgage loans could be purchased at: a) par b) a premium c) a discount d) face value
c) a discount
200
A new federally chartered savings bank opened in Anytown, USA. This new bank will come under the regulation of: a) Federal Home Loan Bank Board b) Office of Thrift Supervision c) Federal Reserve System d) FDIC
Office of Thrift Supervision
200
Which is NOT an example of a physical encumbrance? a) Mortgage lien b) public utitlity easement c) private deed restriction d) driveway encroachment
a) Mortgage lien
300
In lien and intermediate theory states, title remains with the borrower with lien rights empowering foreclosure assigned to a: a) lender b) trustee c) beneficiary d) borrower
Trustee
300
Which of the following would be MOST detrimental to a credit score? a) only 3 months of credit history b) Three inquiries for new credit c) 90 days late on three accounts d) owing 20% of available credit
90 days late on three accounts
300
The Federal Housing Finance Agency (FHFA) regulates all of the following EXCEPT: a) HUD b) Fannie Mae c) Freddie Mac d) Federal Home Loan Banks
HUD
300
Savings associations or thrifts, were first regulated by the: a) Federal Reserve b) Federal Home Loan Bank System c) Federal National Mortgage Association d) Federal Deposit Insurance Corporation (FDIC)
b) Federal Home Loan Bank System
300
George Green was surprised when he attempted to pay off his current loan and was told that he must pay 2% of the loan balance in addition to the balance due. His loan must have included a: a) due-on-sale clause b) defeasance clause c) prepayment penalty clause d) late payment penalty clause
prepayment penalty clauseGeorge
400
The system whereby the lender holds title to the property and may dispossess the borrower without notice upon any default of the loan agreement is called: a) equitable rights b) title theory c) lien theory d) intermediate theory
b) title theory
400
Which of the following is NOT a well-paired match? a) Fannie Mae/Freddie Mac b) FHA/VA c) HUD/Treasury d) Desktop Underwriter / Loan Prospector
HUD / Treasury
400
A package of agricultural loans would MOST likely be purchased by: a) Fannie mae b) Freddie Mac c) Farmer Mac d) Federal Home Loan Bank
Farmer Mac
400
Life insurance and casualty insurance companies are regulated by: a) The Federal Reserve b) The Home Loan bank Board c) State laws and regulations d) Federal laws and regulations
State laws and regulations
400
When developer Bob Smith bought 4 acres of land with seller financing from Farmer Jones to build his new subdivision, he needed to ensure that he would be able to obtain a construction loan in the the future. Which of the following will Bob need to have included in the mortgage? a) acceleration clause b) Defeasance clause c) Due-on-sale clause d) subordination clause
Subordination clause
500
A form of financing that does not require a note but is a complete financing and sales agreement is called any of the following EXCEPT: a) land contract b) contract for deed c) installment sale d) note and mortgage
note and mortgage
500
Freddie Mac's electronic underwriting system, Loan Prospector, provides the lender with ALL of the following EXCEPT: a) an evaluation of borrower's creditworthiness b) the estimated value of the property c) an estimate of appropriate pricing depending on the credit risk d) consideration of compensating factors
consideration of compensating factors
500
A "jumbo loan" is a mortgage loan that: a) covers multiple properties b) exceeds $500,000 c) exceeds the FHA maximum loan limit d) exceeds the Fannie/Freddie maximum loan limit
d) exceeds the Fannie/Freddie maximum loan limit
500
Under the FY2009 Omnibus Appropriations Bill, commercial banks are NOT allowed to perform which of the following services for their customers? a) Market annuities b) Sell title insurance c) Sell stocks and bonds d) Act as real estate brokers
Act as real estate brokers
500
Marvin might use junior financing for any of the following EXCEPT: 1) to add a garage to his home b) to pay for college tuition c) to make a down payment on a vacation home d) to reduce the balance on his first mortgage
To reduce the balance due on his first mortgage