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

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
Which practice involves talking the consumer into refinancing over and over so a lender can charge fees?
A.   Premeditated lending
B.   Loan flipping
C.   Poison 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.   Reinstatement
B.   Deed in lieu of foreclosure
C.   Loan modification
D.   Deficiency judgment
Question #3
Which method of foreclosure does not involve the court, but includes a trustee’s sale?
A.   Judicial
B.   Non-judicial
C.   Deed in lieu of foreclosure
D.   Strict
Question #4
Mortgages may still, but only rarely, contain which of the following clauses?
A.   Amortization clause
B.   Underwriting clause
C.   Alienation clause
D.   Prepayment penalty clause
Question #5
What is a short sale?
A.   The borrower pays back the loan, thus avoiding foreclosure.
B.   The borrower sells the property, but for less than the amount owed on the property
C.   The borrower turns the deed over to the lender, rather than face foreclosure proceedings.
D.   The lender receives the deed as a result of foreclosure proceedings.
Question #6
To whom does the subprime market cater?
A.   High-wealth individuals
B.   Property managers
C.   Less creditworthy borrowers
D.   Investors
Question #7
What is a deed in lieu of foreclosure?
A.   The borrower pays back their loan, thus avoiding foreclosure.
B.   The borrower sells their property, but for less than the amount owed on their property.
C.   The lender receives the deed as a result of foreclosure proceedings.
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.   Real Estate Settlement Procedures Act
B.   Equal Credit Opportunity Act
C.   Community Reinvestment Act
D.   Consumer Credit Protection Act

Need help with your exam preparation?

Existing Quiz Clients Login here