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.   A branch manager
D.   The NCUA chairperson
Question #2
Which banking-related entity shares similarities with the purpose and function of the NCUA?
A.   Department of Treasury
B.   IRS
C.   FDIC
D.   Federal Reserve
Question #3
What impact did the authorization of the Credit Union Membership Access Act have on credit unions?
A.   It expanded offerings in the secondary mortgage market.
B.   It increased regulation due to government funding.
C.   It changed national deposit insurance to FDIC.
D.   It removed the union-worker-only membership restriction.
Question #4
Which type of loan is meant specifically for improvements, such as additions or renovations?
A.   Conventional loan
B.   Home improvement loan
C.   Home equity loan
D.   Home equity line of credit
Question #5
Mortgage bankers are mostly what type of enterprise?
A.   Exclusive
B.   Private
C.   Public
D.   Closed
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.   Home equity loan
B.   Conventional loan
C.   Construction loan
D.   Home equity line of credit
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 taking partial ownership of the project in exchange for funding the loan.
C.   The life insurance company pays exactly 50% of the loan, and the borrower comes up with the other 50%.
D.   The life insurance company participates by finding the borrower the best lender for their project.
Question #8
Which of the following is true about mortgage brokers?
A.   They originate their own loans.
B.   They're paid through fees from originating and servicing loans.
C.   They service the loan for its entire lifecycle.
D.   They don't service the loan beyond placement.

Need help with your exam preparation?

Existing Quiz Clients Login here