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.   Loan flipping
B.   Poison lending
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.   Loan modification
B.   Deed in lieu of foreclosure
C.   Deficiency judgment
D.   Reinstatement
Question #3
Which method of foreclosure does not involve the court, but includes a trustee’s sale?
A.   Non-judicial
B.   Deed in lieu of foreclosure
C.   Strict
D.   Judicial
Question #4
Mortgages may still, but only rarely, contain which of the following clauses?
A.   Underwriting clause
B.   Amortization clause
C.   Alienation 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 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.   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 turns the deed over to the lender rather than face 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 lender receives the deed as a result of 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.   Community Reinvestment Act
C.   Consumer Credit Protection Act
D.   Equal Credit Opportunity Act

Need help with your exam preparation?

Existing Quiz Clients Login here