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 shutting down the stock market
C.   By limiting the number of loans a bank may originate
D.   By regulating the flow of available funds and interest rates
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 servicer
D.   Mortgage banker
Question #3
Any financial institution with deposits that are insured by a federal government agency can sell mortgages to which institution?
A.   Fannie Mae (FNMA)
B.   Freddie Mac (FHLMC)
C.   Farmer Mac
D.   Ginnie Mae (GNMA)
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.   Mortgage broker
B.   Savings and loan
C.   Investment group
D.   Insurance company
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.   Primary mortgage market
C.   Federal Reserve System
D.   Stock market
Question #6
Which of the following is a property requirement for CalHFA?
A.   The property must be located in California.
B.   The property can be a primary or secondary residence.
C.   The property must be at least five acres.
D.   The property can be a mobile or manufactured home.
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 cannot be a mobile or manufactured home.
B.   The property must be owner-occupied.
C.   The property can be transferred, encumbered, or leased as the owner sees fit.
D.   The property must be a unit in a planned unit development (PUD).

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