CA Real Estate Principles Course » 2021 » Section 14 Unit 3 Exam

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Question #1
How does the Fed maintain a balanced economy?
A.   By purchasing loans on the secondary market
B.   By regulating the flow of available funds and interest rates
C.   By shutting down the stock market
D.   By limiting the number of loans a bank may originate
Question #2
Darrel loves working in the mortgage lending industry. On a daily basis, he works with multiple lenders to find and negotiate the best deals for his customers. What is Darrel's profession?
A.   Real estate investor
B.   Mortgage broker
C.   Mortgage banker
D.   Mortgage servicer
Question #3
Any financial institution with deposits that are insured by a federal government agency can sell mortgages to which institution?
A.   Ginnie Mae (GNMA)
B.   Freddie Mac (FHLMC)
C.   Farmer Mac
D.   Fannie Mae (FNMA)
Question #4
Rachel loves convenience. As you can imagine, she was thrilled when she was able to finance her mortgage through the same institution where she deposits her payroll checks. Which of these most likely financed Rachel’s mortgage?
A.   Insurance company
B.   Investment group
C.   Mortgage broker
D.   Savings and loan
Question #5
Amy purchased a new home and obtained financing through a bank, called Natula Bank. Natula originated the loan, but before Amy’s first mortgage payment was due, it sold her loan to CitiMortgage. As a loan originator, what market is Natula Bank operating in?
A.   Secondary mortgage market
B.   Stock market
C.   Federal Reserve System
D.   Primary mortgage market
Question #6
Which of the following is a property requirement for CalHFA?
A.   The property can be a mobile or manufactured home.
B.   The property must be located in California.
C.   The property must be at least five acres.
D.   The property can be a primary or secondary residence.
Question #7
David is an active duty member of the U.S. Air Force. Assuming he and the property meet the qualifications, which type of mortgage may be the best option for him?
A.   A Ginnie Mae-originated loan
B.   A conventional loan
C.   An FHA loan
D.   A VA-guaranteed loan
Question #8
Which of the following is a property requirement for CalVet loans?
A.   The property must be a unit in a planned unit development (PUD).
B.   The property must be owner-occupied.
C.   The property can be transferred, encumbered, or leased as the owner sees fit.
D.   The property cannot be a mobile or manufactured home.

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