CA Real Estate Finance Course » 2021 » Sec 5 Unit 1 Exam

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
Who or what entity directs the activities of credit unions?
A.   A board of directors
B.   The head of the FDIC
C.   The NCUA chairperson
D.   A branch manager
Question #2
Which banking-related entity shares similarities with the purpose and function of the NCUA?
A.   Federal Reserve
B.   FDIC
C.   Department of Treasury
D.   IRS
Question #3
What impact did the authorization of the Credit Union Membership Access Act have on credit unions?
A.   It changed national deposit insurance to FDIC.
B.   It removed the union-worker-only membership restriction.
C.   It increased regulation due to government funding.
D.   It expanded offerings in the secondary mortgage market.
Question #4
Which type of loan is meant specifically for improvements, such as additions or renovations?
A.   Home equity loan
B.   Home equity line of credit
C.   Home improvement loan
D.   Conventional loan
Question #5
Mortgage bankers are mostly what type of enterprise?
A.   Closed
B.   Exclusive
C.   Private
D.   Public
Question #6
A local company wants to build a new office building. What type of loan will it most likely be seeking from its commercial bank?
A.   Conventional loan
B.   Home equity line of credit
C.   Construction loan
D.   Home equity loan
Question #7
What does it mean when a life insurance company uses participation financing?
A.   The life insurance company gives a discount on the loan if the borrower allows them to help with the project.
B.   The life insurance company participates by finding the borrower the best lender for their project.
C.   The life insurance company participates by taking partial ownership of the project in exchange for funding the loan.
D.   The life insurance company pays exactly 50% of the loan, and the borrower comes up with the other 50%.
Question #8
Which of the following is true about mortgage brokers?
A.   They service the loan for its entire lifecycle.
B.   They don't service the loan beyond placement.
C.   They originate their own loans.
D.   They're paid through fees from originating and servicing loans.

Need help with your exam preparation?

Existing Quiz Clients Login here