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.   Turnover lending
B.   Premeditated lending
C.   Poison lending
D.   Loan flipping
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.   Deed in lieu of foreclosure
B.   Loan modification
C.   Deficiency judgment
D.   Reinstatement
Question #3
Which method of foreclosure does not involve the court, but includes a trustee’s sale?
A.   Deed in lieu of foreclosure
B.   Judicial
C.   Non-judicial
D.   Strict
Question #4
Mortgages may still, but only rarely, contain which of the following clauses?
A.   Alienation clause
B.   Underwriting clause
C.   Amortization clause
D.   Prepayment penalty clause
Question #5
What is a short sale?
A.   The lender receives the deed as a result of foreclosure proceedings.
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 borrower pays back the loan, thus avoiding foreclosure.
Question #6
To whom does the subprime market cater?
A.   Investors
B.   Less creditworthy borrowers
C.   Property managers
D.   High-wealth individuals
Question #7
What is a deed in lieu of foreclosure?
A.   The borrower turns the deed over to the lender rather than face foreclosure proceedings.
B.   The borrower pays back their loan, thus avoiding foreclosure.
C.   The lender receives the deed as a result of foreclosure proceedings.
D.   The borrower sells their property, but for less than the amount owed on their property.
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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