CA Real Estate Principles Course » 2021 » Section 14 Unit 5 Exam

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Question #1
Which practice involves talking the consumer into refinancing over and over so a lender can charge fees?
A.   Poison lending
B.   Loan flipping
C.   Premeditated lending
D.   Turnover lending
Question #2
What is it called when borrowers pay back all of the amounts owed and become current (no longer in default) on their loan?
A.   Deficiency judgment
B.   Loan modification
C.   Reinstatement
D.   Deed in lieu of foreclosure
Question #3
Which method of foreclosure does not involve the court, but includes a trustee’s sale?
A.   Deed in lieu of foreclosure
B.   Non-judicial
C.   Strict
D.   Judicial
Question #4
Mortgages may still, but only rarely, contain which of the following clauses?
A.   Amortization clause
B.   Prepayment penalty clause
C.   Alienation clause
D.   Underwriting clause
Question #5
What is a short sale?
A.   The borrower sells the property, but for less than the amount owed on the property
B.   The borrower turns the deed over to the lender, rather than face foreclosure proceedings.
C.   The lender receives the deed as a result of foreclosure proceedings.
D.   The borrower pays back the loan, thus avoiding foreclosure.
Question #6
To whom does the subprime market cater?
A.   Property managers
B.   Less creditworthy borrowers
C.   High-wealth individuals
D.   Investors
Question #7
What is a deed in lieu of foreclosure?
A.   The lender receives the deed as a result of foreclosure proceedings.
B.   The borrower pays back their loan, thus avoiding foreclosure.
C.   The borrower sells their property, but for less than the amount owed on their property.
D.   The borrower turns the deed over to the lender rather than face foreclosure proceedings.
Question #8
Which act was created to safeguard the consumer in the use of credit by requiring full disclosure of the terms and conditions of that credit?
A.   Consumer Credit Protection Act
B.   Community Reinvestment Act
C.   Equal Credit Opportunity Act
D.   Real Estate Settlement Procedures Act

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