Ned loves to buy his girlfriend, Nancy, presents. But when he tracks his spending, he finds that he spends more than he can afford on presents. How should he act as a result of this data analysis of his spending habits?

Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine’s transaction covered by the Real Estate Settlement Procedures Act?

Over how many years is a commercial property depreciated?

You’re researching information to estimate annual income and find that the average sales price of a home in the area you’ll be working is $400,000. Your expected commission is 2.5%, your broker takes a 50% split, and you plan to make six transactions in the year. What will your estimated income for the year be?

Which definition best describes a package mortgage?

In which type of participation agreement would a financier lower the interest on the mortgage in exchange for partial ownership of the project?

A Treasury bill is a Treasury security ______.

It’s possible for the adjustment period on an adjustable rate mortgage (ARM) to have ranges, such as three or ______ years apart.

Which of these is a reason that the deed of trust is the standard security instrument used in California real estate transactions?

Which of the following best describes a recourse mortgage?

Which of the following is a piece of specific data an appraiser may gather?

Which of the following is a true statement about FHA financing?

Which of the following is a likely effect when the discount window is closed?

When does PMI end?

Maura is a real estate salesperson who does not have an MLO endorsement. Which of these actions can she perform for her client, who is financing the purchase of a single-family home?

A lender was not able to recover all of the losses incurred during the foreclosure process. What could it pursue to recoup these losses?

Monica received a promotion at work that requires her to relocate. Because of the timing of her promotion, she’ll need to buy a new house in her new city before her current one is sold. So, she won’t have any equity from her current home to make a down payment on the new house. What loan option would allow her to make the purchase before selling the old house?

Kobi, an appraiser, is appraising a single-family home used for a rental. If he wants to use the income approach, he will likely use ______.

Which of the following describes the prime rate?

The buying and selling of government securities as a way to influence the money supply and balance economic growth describes ______.

Which one of the following statements is true for a sale that’s subject to an existing mortgage lien?

Nadia uses a VA loan to buy a house for $125,000. She wants to buy the neighboring property, an empty lot, so she can improve the house using the extra land. The lot is for sale for $135,000. Can she use a VA loan for this purchase?

Jasmine has a mortgage on her property, but allows her homeowner's insurance to lapse. Which of these is a possible consequence of this action?

What must a prudent lender do with the information received on a loan application?

A short-term security issued by the Treasury that has a maturity term of one year or less is called a Treasury ______.

In which phase of the real estate market would you expect to see unemployment and foreclosures remain high but begin to stabilize?

A new apartment building is going up downtown. The owner secured interim financing for the job. Which of these loan types is interim financing?

If a cloud on a title is discovered, which party is generally responsible for clearing the cloud?

Mark and Nancy purchased a municipal bond to help with the funding of a new school gymnasium. In exchange for their investment, what will they receive?

Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000. What's the loan-to-value ratio?

Sandra is a single woman fresh out of college. She hopes to qualify for an FHA loan. Her lender calculates her housing ratio as 31% and her total debt obligation as 43%. Her credit score is 480. Does she qualify under FHA underwriting guidelines?

Which statement best describes the most common approach used to reconcile the three appraisal approaches?

Kathy has some unexpected expenses when she breaks her leg skiing. Which of the accounts in her personal finance system is designed to help her pay bills while she is recovering and unable to work at her usual pace?

The ______ defines individuals who perform certain foreclosure-related activities for compensation for borrowers.

A seller wants to net $10,000 after the broker’s commission of 6% and a loan balance of $250,000 are paid. For how much does the property need to sell?

How's interest defined as it's related to a mortgage loan payment?

Dana and Phil have evaluated their situation, and have decided to purchase a unit in a cooperative housing project. Which FHA loan program might work for them?

If you have a specific health issue, which of the following is most critical for you to thoroughly investigate when selecting health insurance?

A vendor and vendee are the parties involved when the finance instrument is a ______.

A loan with lower payments in the early years that increase gradually until they are sufficient to amortize the loan fully is a(n) ______ mortgage.

A foreclosure consultant was found guilty of violating the Mortgage Foreclosure Consultant Law. As a result, the consultant could face fines up to $10,000, up to ______, or both.

A trustee’s sale has just occurred. What does the highest bidder receive?

Tyler is a developer who renovates a long-abandoned warehouse in a low-income neighborhood into a community center, complete with space for after-school programs, a daycare, and a gym. Tyler is able to complete the renovation with a loan funded by a local bank. Which act requires financial institutions to make credit available for this type of development?

What's depreciation?

What's the purpose of a typical subordination agreement?

One of these actions is considered an MLO activity. Which one?

The final page of the Closing Disclosure provides loan calculations that tell the consumer how much ______.

What qualifying ratios are used in a VA home loan?

The purpose of the Seller Financing Disclosure Law is ______.

What attracts borrowers to adjustable rate mortgages?

What's the name of the calculation that looks at a borrower’s monthly housing obligation—including principal, interest, taxes, and insurance, as well as any homeowners or condo association fees—as a percentage of their monthly gross income?

What is a seller carry back?

Paulina is buying her first house. Which of these costs will she NOT be expected to pay?

What does the “T” in PITI stand for?

Which of the following clauses is included in Fannie Mae’s multi-state note?

How is title usually conveyed to the buyer during a foreclosure process?

What do loans create for banks and other financiers?

Betty is purchasing a home and has received Loan Estimates from three lenders. As she compares the terms of the loans being offered, where can she find the section that allows her to make comparisons between loans with different interest rates?

Bob just closed on his investment property. He's already identified a replacement property that he'll be exchanging into by using a 1031 tax-deferred exchange. How many days does he have to close on his replacement property?

When completing a loan application, the applicant must list their assets. Which of these is considered an asset?

Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?

David is buying a home for $400,000 and financing 90% of it. If his lender charges a 1% loan origination fee, how much will the lender charge to originate the loan?

What's true about the draw period on a home equity line of credit (HELOC)?

The Covered Loan Law limits total fees and points paid by the borrower prior to closing to what amount?

Conforming loan limits vary based on the number of units being purchased with the property and ______.

Glen is assisting a buyer who makes an offer on a condo in a high-end area of town. The seller refuses the offer, and Glen’s client believes this is discriminatory behavior. How should Glen advise his client in this situation?

Which agency is responsible for the production of coins?

The Ropers are purchasing a home using VA financing. The sales price of the home is $210,000. The CRV comes in at $215,000. On what number will the VA’s loan guarantee be based?

What’s one reason a homeowner would want to refinance their mortgage?

Which of the following best describes foreclosure by writ of entry?

Which of the following best describes a blanket lien?

A homeowner is behind on his mortgage. He’s decided to try to sell the property and is working with his lender to do so. He owes $315,000 on his loan balance and closing costs. He has an offer for $300,000, which the lender approves. What is this an example of?

Real estate professionals keep a multitude of other professionals busy during the buying and selling process. Which of these professionals or entities are most active during the construction phase of real estate?

Why does the federal government have agricultural lending programs?

Connie and John Fink, a married couple ages 69 and 72 respectively, want to stay in their home. The type of mortgage they’re considering will allow the lender to make payments to the Finks for a certain period of time, while the lender gains corresponding ownership. Which type of mortgage are they considering?

Jansen is a real estate licensee with a mortgage loan originator endorsement. He’s representing the seller as their real estate agent, and the buyer as a mortgage loan originator in the same transaction, without the permission of either party. What is this an example of?

Which clause in the deed of trust is the equivalent of the defeasance clause in the mortgage?

Jean is a high school English teacher. With the Good Neighbor Next Door program, she’s able to buy a foreclosed FHA-insured property ______, though she does have to agree to live on the property for three years.

In order for the spousal support Kayla receives to be considered in the lender’s income evaluation when Kayla applies for a home loan, what must be true

Which of the following best describes the non-judicial foreclosure process?

Commander Halfback retires after 25 years of service in the Coast Guard. He is looking to buy a home. What type of loan should he use?

Which of the following describes mutual savings bank loans?

What does it mean if the Fed increases reserve requirements?

Which of the following occurs when the property is damaged or just has normal wear and tear?

Historically, what do property values tend to do over long periods of time?

Which of the following activities must occur before a trustee can begin a non-judicial foreclosure?

The number of ______ you put into a funnel will determine the amount of income you can make.

Yancey purchased a home six months ago using a VA loan. Due to an inheritance, he is suddenly able to pay off his mortgage. Will he pay a pre-payment penalty?

Does the VA make direct loans?

Which of the following describes the discount rate?

A buyer with a $242,000 loan has a monthly principal and interest payment of $1,317.66. If $1,033.54 is interest, what’s the new principal balance after the first payment is applied?

Which of these individuals may benefit from USDA Rural Development program offerings?

Though not a loan, buyers may be able to enlist the help of ______, who can give them a tax-free gift to help them with their purchase.

The U.S. ______ is the federal agency with the mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

What is it called when borrowers pay back all of the amounts owed and become current (no longer in default) on their loan?

Shelly’s real estate investment strategy is to look for smaller multi-family properties, fix them up, and rent them out. Her investment strategy most closely matches which of the following?

Which of the following is a true statement about tranches?

What is one of the ways the U.S. Treasury promotes economic growth and stability?

HUD’s strategic plan outlines the ______ that support its mission.

Which act exempted homeowners from paying taxes on capital gains up to a specified value?