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.   Loan flipping
D.   Poison 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.   Deed in lieu of foreclosure
D.   Reinstatement
Question #3
Which method of foreclosure does not involve the court, but includes a trustee’s sale?
A.   Non-judicial
B.   Judicial
C.   Strict
D.   Deed in lieu of foreclosure
Question #4
Mortgages may still, but only rarely, contain which of the following clauses?
A.   Alienation clause
B.   Amortization clause
C.   Underwriting clause
D.   Prepayment penalty 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 pays back the loan, thus avoiding foreclosure.
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.   Property managers
B.   High-wealth individuals
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 lender receives the deed as a result of foreclosure proceedings.
C.   The borrower turns the deed over to the lender rather than face 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.   Real Estate Settlement Procedures Act
C.   Community Reinvestment Act
D.   Equal Credit Opportunity Act

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