California Principles questions Ch10-Ch14

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Principles Ch10 quiz

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1 of 10 Jonathan rents a two bedroom house from Samantha and Gerald. The plumbing keeps backing up into the basement, leaving water and sewage on the basement floor. Jonathan has repeatedly reported this issue to Samantha and Gerald. He has made telephone calls and spoken to each landlord; he has also sent a written request with proof of delivery. It has been two months and not only has nothing been done, they have not even responded to his calls or requests. What are Jonathan’s options, if any?

A.    Jonathan may file suit in civil court to force Samantha and Gerald to either make the repairs or refund his rent, with interest, and any damages and costs.

B.     Jonathan has a couple of options available to resolve this issue. He may spend up to one month’s rent in repairs or abandon the premises. If he abandons the premises, Jonathan is relieved from paying additional rent and other conditions of the lease.

C.     Jonathan’s only option is to abandon the premises. If he does so, he is relieved of any rent or other conditions of the lease.

D.    Jonathan may surrender the lease and end any further obligations to the contract.

Principles

2 of 10 Jeff and Ryan rent a house from Mike and Yolanda Reynolds. They are three months behind in their rent and neighbors have been complaining about the noise coming from the home. Mike and Yolanda have tried to work with Jeff and Ryan to help them get back on track with the tardy rent, but the guys are not cooperating. Mike and Yolanda have decided they have no choice but to start the eviction process. Mike wants to just go in and remove the possessions, shut off all the utilities, and change the locks. Yolanda believes Mike’s idea may be illegal and thinks there are other options. Is she correct and, if so, what are the options?

A.    No, Yolanda is not correct on both points. Mike’s idea is not illegal. Jeff and Ryan are behind by three months in their rent payments. Mike has every right to remove the guys and their possessions from the property.

B.     Yes, Yolanda is correct. It is illegal for Mike to take such actions. The landlords may serve the tenants with either a seven-day or fifteen-day notice of eviction.

C.     Yes, Yolanda is correct. It is illegal for Mike to take such actions. The landlords may serve the tenants with a three-day notice of eviction.

D.    Yes, Yolanda is correct. It is illegal for Mike to take such actions. They must file an unlawful detainer in court, and the tenants can be forcibly removed by the sheriff.

3 of 10 Dr. Mullins owns a home he leases to college students. The tenants have been complaining to Dr. Mullins of bats in the attic. At times, the bats have flown downstairs into the living areas of the home. Recently in the area, a man was bitten by a rabid bat. The students are worried and are unsure of their rights. Which guarantee covers the tenants’ right that the property meets the minimum health and housing codes?

A.    Implied Right of Habitability

B.     Reversionary Right

C.     Leasehold Interest Right

D.    Possessory Right

4 of 10 What circumstances require a lease to be in writing?

A.    California’s Statute of Frauds requires a lease to be in writing if it has a term of more than one year, or has a term of less than one year, which expires more than one year after the agreement is reached.

B.     The California Department of Real Estate requires a lease to be in writing if it has a term of one year or longer; or has a term of less than one year, which expires more than one year after the agreement is reached.

C.     California Civil Code Section 1942 requires a lease to be in writing if it has a term or one year or longer; or has a term of less than two years, which expires more than one year after the agreement is reached.

D.    The Commissioner of Real Estate requires a lease to be in writing if it has a term or two years or longer; or has a term of less than one year, which expires more than one year after the agreement is reached.

5 of 10 Max owns a townhouse in Sacramento. He is in the process of leasing it to Hannah. The contractual lease states Hannah Scott will be leasing Max Thomas’ townhouse for two years beginning July 1. She will be paying $1,000 per month due by the first of each month. The lease clearly states Max will be the landlord of the townhouse and Hannah the tenant. Is there a minimum requirement for a California lease missing?

A.    No, the lease has met all of the minimum lease requirements of the state of California.

B.     Yes, the missing minimum requirement is the absence of the issue of a security deposit.

C.     Yes, the missing minimum requirement is the absence of any assignment and subleasing options.

D.    Yes, the missing minimum requirement is the absence of a sufficient description of the property, such as an address and/or a legal description.

6 of 10 Which of the following is not a type of leasehold estates?

A.    An Estate for Years

B.     An Estate from Period to Period

C.     Tenancy in Common

D.    Estate at Will

7 of 10 Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is located is going through a major widening and most of the homes are going to be leveled for the project. Through eminent domain, Michelle must sell her home to the city for the construction. What is the required length of notice Luis must receive from Michelle in terminating the lease?

A.    Michelle must give Luis a thirty-day written notice of the lease termination.

B.     Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year.

C.     Michelle does not have to give Luis any sort of notice due to the eminent domain. He must vacate the premises within the week of the sale to the city.

D.    None of the above.

8 of 10 Samir Shah is a landlord leasing apartments for residential use. He will be updating the lighting fixtures in his units during the month of January. He has been having his maintenance crew enter the units at will to make the changes. Several of the tenants have been surprised, frightened, and inconvenienced. Is it acceptable for Samir’s employees to enter unannounced?

A.    Yes, the landlord may enter the rental property at any time to make necessary or agreed repairs, decorations, alterations, or improvements.

B.     No, although it is an acceptable reason for the landlord to enter the units, they must give the tenant at least a 24-hour notice and enter between normal business hours.

C.     No, the landlord may only enter the rental property in case of emergency; to supply necessary or agreed services; when the tenant has abandoned or surrendered the premises; or under a court order.

D.    Yes. Because the landlord has okayed the entrance by his representatives for work to improve the rental properties, it is acceptable for the unannounced entrances.

9 of 10 Shanta is renting beachfront property in Malibu. The unfurnished bungalow has two bedrooms, one bathroom, and is right on the beach. Shanta’s monthly rent is $1,600. Her landlord, Harold, is requiring a $6,400 nonrefundable security deposit. This amount includes her first month’s rent. Is this an acceptable amount for a security deposit?

A.    No, the maximum security deposit allowed in California for an unfurnished property is two months’ rent. The correct amount would be $4,800, including the first month’s rent. Additionally, security deposits cannot be labeled as nonrefundable.

B.     No, the maximum security deposit allowed in California for an unfurnished property is one month’s rent. The correct amount would be $3,200, including the first month’s rent and the security deposit. Additionally, security deposits cannot be labeled as nonrefundable.

C.     Yes, the maximum security deposit allowed in California for an unfurnished property is three months’ rent. The amount of $6,400 includes the first month’s rent. However, the security deposit cannot be labeled as nonrefundable.

D.    No, there is not a maximum security deposit regulation in California. Landlords may decide on the amount based on the property’s value.

10 of 10 Renee is leasing her condo in San Francisco from Brad. For the first six months of the lease, her rent will be $1,200 per month. Every six months her rent will increase $100 per month based on the increases to Brad in taxes, insurance, and other operating costs. What type of lease has Renee signed?

A.    Index Lease

B.     Graduated Lease

C.     Escalator Clause Lease

D.    Economic Rent Lease

Principles Ch11 quiz

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1 of 10 The Lemps have been looking at new homes for weeks and have not found anything worthy of an offer. Mikel, their agent, has invested a large amount of time in showing homes with no luck. Today, he calls Mr. Lemp and says, “I have found you the perfect home! The home is amazing! The yard is perfect and lush. The school district is the best in the state. This home and area are the most prestigious in the city!” Are these types of statements legal?

A.    No, this is intentional misrepresentation and cannot be substantiated.

B.     Yes, this is legal as long as Mikel does not violate the Federal Fair Housing Laws. These statements are considered “Puffing” in the real estate world. “Puffing” can be unethical if the statements are not true, but it is not illegal.

C.     No, this is unintentional misrepresentation. By exaggerating, Mikel is making promises about the property and surrounding areas that are purely subjective.

D.    No, this is merely good salesmanship. Describing a home and the surrounding area in glowing terms is just that and nothing more.

2 of 10 Howard wants to purchase a vacation property. He decides to use the expertise of a real estate professional. One of his business associates recommends Jose. Howard explains to Jose that he wants Jose to only represent his purchasing interest, and a contract is signed. Who is the agent? Who is the principal? What is their relationship? What is Jose’s role?

A.    Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent.

B.     Jose is the principal; Howard is the agent; they have a third party relationship; Jose is a broker.

C.     Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent.

D.    Both A and C

3 of 10 The Marinos are selling their home to the Snyders. Tim is representing both the Marinos and the Snyders in the transaction. He had initially listed the Marinos’ home and realized their home would be perfect for his buyer clients, the Snyders. After making all the necessary disclosures to both parties, he showed the Snyders the Marinos’ home and they are buying it. The Marinos are paying commission on the transaction to Tim’s broker, who in turn, will compensate Tim. Since the Marinos are paying Tim’s commission, does this constitute an agency relationship, and, if so, what kind of an agency relationship?

A.    The fact that one party (the Marinos/sellers) or another party (the Snyders/buyers) pays a commission does not create an agency relationship.

B.     Yes, this constitutes an agency relationship. Due to the Marinos’ paying the commission, the relationship would be between Tim, a special agent to the Marinos, and the Marinos (sellers).

C.     Yes, this constitutes an agency relationship between the Marinos, the Synders and Tim. The payment of commission by the sellers produces a single agency relationship between the parties.

D.    None of the above.

4 of 10 Price fixing, group boycotts, bid rigging, market allocation and division of markets by location or price are all examples of ________________ and are punishable by ___________________.

A.    Estoppels; suspension of one’s license

B.     Intentional misrepresentation; fines of up to $10 million for corporations and up to $350,0000 for individuals and/or prison time

C.     Antitrust violations; fines of up to $100 million for corporations and up to $1 million for individuals and/or prison time

D.    Conversion; prison time and up to $1 million in fines

5 of 10 Perry is listing his home with Extra Real Estate Company, a brokerage. He wants the listing as follows: He must receive $250,000 from the sale of the home, anything above that price is the broker’s commission. Which type of listing agreement is Perry demanding?

A.    Exclusive Agency

B.     Open Listing Agreement

C.     Exclusive Right to Sell with Automatic Extender

D.    Net Listing

6 of 10 RSS Real Estate Brokerage is the listing broker for the Pratte property. RSS delegates some of the responsibility of the listing to Helpful Real Estate Company. The two brokers cooperate on listings frequently and have a good working relationship. Unfortunately, RSS failed to get the principal’s (Pratte’s) agreement to the delegation. What is the relationship between RSS Real Estate Brokerage and Helpful Real Estate Company?

A.    Helpful Real Estate Company becomes the agent of RSS Real Estate Brokerage due to the appointment without the consent of the principal.

B.     Helpful Real Estate Company is now the assigned agent of the listing broker, RSS Real Estate Brokerage.

C.     Helpful Real Estate Company becomes the cooperating agent to RSS Real Estate Brokerage’s listing broker’s representation of the Pratte property.

D.    Helpful Real Estate Company becomes the dual agent to RSS Real Estate Brokerage’s listing broker’s representation of the Pratte property.

7 of 10 TBH Realty Company is handling the sale of the Lopez (seller) home to the Bright (buyer) family. The buyers give an earnest money deposit to the brokerage in the amount of $5,000. The money is then deposited into the broker’s account at the bank on the seventh business day after receiving the funds. Has TBH Realty Company followed all trust account regulations with the earnest money?

A.    Yes, the money was received and deposited into the broker’s account by the seventh business day after receiving the funds.

B.     No, the broker should have deposited the earnest money into the broker’s account within three business days of receiving the funds.

C.     No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker’s trust fund not the broker’s account.

D.    No, the broker should have deposited the earnest money into the broker’s trust fund not the broker’s account within the seven days allotted after receipt of funds.

8 of 10 Hassan is not happy with the listing agreement on his home through REE Realty Company. He has not been pleased with the showings without notice, the agents showing his home have been rude, and he doesn’t feel the property has received the advertising or exposure promised when he signed the listing contract. What is his best option for terminating the listing with REE Realty Company?

A.    Hassan could wait for himself or the broker to pass away.

B.     Hassan could wait for the expiration of the agreement term to pass.

C.     Hassan could speak with the broker and possibly come to a mutual agreement that it is in both parties’ best interest to cancel the listing.

D.    Hassan could cancel the agreement; however, since it is contractual, the broker could decide to sue for damages.

9 of 10 What is the difference between commingling and conversion? Which, if either, is considered a more serious violation?

A.    Commingling is the practice of mixing a client’s money with the agent’s personal funds. Conversion is the unlawful misappropriation and use of a client’s funds by a licensee. Commingling is the more serious of the two violations.

B.     Commingling is the unlawful misappropriation and use of a client’s funds by a licensee. Conversion is the practice of mixing a client’s money with the agent’s personal funds. Conversion is the more serious of the two violations.

C.     Commingling is the practice of mixing a client’s money with the agent’s personal funds. Conversion is the unlawful misappropriation and use of a client’s funds by a licensee. Neither violation is considered more serious than the other; they both have heavy criminal penalties.

D.    Commingling is the practice of mixing a client’s money with the agent’s personal funds. Conversion is the unlawful misappropriation and use of a client’s funds by a licensee. Conversion is the more serious violation.

10 of 10 Scott is trying to sell his home FSBO. The Bartells believe Scott’s home could be their dream home, but they have been working with Melinda, a licensee, to find a new home. Melinda shows the Bartells the home, failing to disclose her status as an agent. They love Scott’s home and want to buy it. Scott is not interested in any way, shape, or form in working with an agent. However, the Bartells have made an offer above his asking price and he can’t refuse it over the Melinda issue. Which of the following describes the creation of this agency relationship?

A.    Written or expressed

B.     Ostensible Agency

C.     Ratification

D.    Implied

Principles Ch12 quiz

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1 of 10 Max, a licensee, accepts a bribe from ABC Title Company for referring clients. What is Max’s possible punishment?

A.    Max could be fined up to $50,000 and up to six months of prison time.

B.     Max could be fined a maximum of $10,000.

C.     Max could go to prison and/or be fined $10,000 for each illegal transaction.

D.    Max may have to pay restitution to those who provided the bribe.

2 of 10 Greg, a licensee, fails to have his client sign off on the purchaser’s counteroffer. Greg’s client verbally approves the new terms, but Greg failed to obtain his signature. The deadline for signing the counteroffer is in one hour. Greg decides to sign his client’s name. Which Penal Code Section addresses this crime, if it is a crime?

A.    PC 470, 473

B.     PC 532a

C.     PC504b

D.    It is not a crime.

3 of 10 A corporation is found guilty of charging purchasers advanced fees for securing mortgage loans on homes they have listed. What is the punishment for the violation?

A.    A fine up to a maximum of $50,000.

B.     A fine up to a maximum of $10,000, with up to six months of prison time, or a combination of both.

C.     A restraining order issued against the corporation protecting clients and restitution and/or damages paid.

D.    None of the above.

4 of 10 The 1943 case People v. Sipper held what decision?

A.    The selection and preparation of a mortgage or deed by a broker, in which a fee was charged, constituted the unlawful practice of law.

B.     The real estate agent should guard well the privilege of practicing real estate while avoiding stepping over the line of practicing law.

C.     A real estate profession has limited legal authority as a licensee.

D.    The real estate licensee could face losing his real estate license for improper behavior.

5 of 10 The Commissioner discovers in an audit commingling of trust accounts by a licensee. At what amount does the court issue a restraining order against the licensee?

A.    In excess of $50,000

B.     In excess of $100,000

C.     In excess of $30,000

D.    In excess of $10,000

6 of 10 The Real Estate Commissioner has the authority to perform all of the following actions except:

A.    Hold formal hearings to decide issues involving a licensee or licensee applicant.

B.     Hold interest in a real estate company or brokerage firm.

C.     Regulate and control the issuance and revocation of all licenses issued under California law.

D.    Adopt, amend, or repeal rules and regulations for the enforcement of the laws.

7 of 10 Jason has approached Sam about purchasing an acre of property that adjoins Jason’s backyard. Sam has explained to Jason on numerous occasions that he is not interested in selling. Jason has resorted to telling Sam if he doesn’t sell the land, he’ll contact the authorities and accuse him of dealing drugs out of his home. Which Penal Code Section addresses this crime?

A.    PC 502.5

B.     PC 518, 519

C.     PC 532a

D.    PC 484b-c

8 of 10 Jeremy, a licensee, witnesses Patti, another licensee, involved in behavior that is questionable. Jeremy learns Patti’s client is also willfully involved in the indiscretions. What action, if any, should Jeremy take?

A.    Jeremy need not take any action. As long as he is not involved in the questionable behavior, he is not obligated to do a thing.

B.     Jeremy is obligated to speak to the authorities and report what he has witnessed. If he is unsure a crime has been committed, he should obtain legal advice.

C.     Jeremy must report all indiscretions to the Department of Real Estate. He is not obligated to report the client’s behavior.

D.    None of the above.

9 of 10 ABC Mortgage Company accepts a bribe from a licensee in exchange for approving mortgages for all of his clients. Which Penal Code Section addresses this crime?

A.    PC 556-556.2

B.     PC 639-639a

C.     PC 830.1

D.    It is not a crime.

10 of 10 The designation “grand theft” is used in relation to the theft of:

A.    Certain farm crops or animals, personal and real property with value of less than $950.

B.     Automobiles and other personal property valued over $950.

C.     Money, labor, real and personal property that exceeds a value of $950.

D.    Both B and C

Principles Ch13 quiz

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1 of 10 Jonathan is in the process of refinancing his home loan. Due to the lowering of interest rates and Jonathan’s credit score improvement, he has been able to secure a conventional loan with an excellent annual percentage rate. Unfortunately, his current loan contract contains a stipulation that if he repays the loan before three years, he will owe the lender a fee of two percent of the loan balance. Which clause applies to Jonathan’s situation?

A.    Subordination Clause

B.     Subrogation

C.     Prepayment Penalty Clause

D.    Alienation Clause

2 of 10 Renata has a home loan for $150,000 at 7.5% interest for 30 years and her payment is $987.00 per month (including principal and interest). What is the principal balance after Renata has made one payment on her loan? After two payments?

A.    $148,950.50, $148,900.70

B.     $149,950.50, $149,900.70

C.     $149,990.50, $149,980.20

D.    $149,920.50, $149,873.80

3 of 10 The Logans are in their seventies with a very nice home. They paid off their mortgage twenty-five years ago. Mrs. Logan has been having serious medical issues and Mr. Logan wants to hire home healthcare professionals to care for her. His retirement savings will not withstand these healthcare costs. He has turned to his home to supplement his monthly income in order to keep his wife at home. Which type of loan applies to the Logan’s situation?

A.    Package Mortgage

B.     Wraparound

C.     Buydown

D.    Reverse Annuity

4 of 10 What are the major differences between a mortgage and a deed of trust?

A.    The amount of interest that may be charged and the method of foreclosure on default.

B.     The number of parties involved and the method of foreclosure on default.

C.     The collaterized form of the loan and the method of foreclosure on default.

D.    None of the above.

5 of 10 Jerilyn has been approved for a home loan in the amount of $250,000 with two points. If one point equals one percent (1%) of the loan balance, what will the points cost Jerilyn? How are the points shown at closing?

A.    $5,000 – The points are shown as a debit to the buyer.

B.     $10,000 – The points are shown as a debit to the buyer.

C.     $5,000 – The points are shown as a credit to the buyer.

D.    $500 – The points are shown as a debit to the buyer.

6 of 10 David has been laid off from his job. Carey, his spouse, only works part time and has been trying to pick up extra shifts. They have missed their third home loan payment this month. Their lender has called the entire balance due and payable immediately. Which clause applies to their situation?

A.    Alienation Clause

B.     Acceleration Clause

C.     Satisfaction of Mortgage Clause

D.    Satisfaction Clause

7 of 10 Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much interest will Naomi pay over the term of her loan?

A.    $244,440

B.     $224,440

C.     $124,440

D.    $144,440

8 of 10 Sumatra has had a terrible year. He lost his business and now he has lost his home in foreclosure. The proceeds from the foreclosure sale were not sufficient to cover his debt, and NOW the lender has taken him to court to obtain more money. Which of the following applies to Sumatra’s situation?

A.    Deficiency Judgment

B.     Deed in Lieu of Foreclosure

C.     Equitable Right of Redemption

D.    Non-Judicial Foreclosure Judgment

9 of 10 If a conventional loan is at 16% and the VA loan is at 15%, the lender will want to charge how many points to increase the yield on investment?

A.    Six Points

B.     Eight Points

C.     Four Points

D.    Two Points

10 of 10 Put the following foreclosure actions in order:

A.    Equitable Right of Redemption, Statutory Redemption, and Foreclosure

B.     Statutory Redemption, Equitable Right of Redemption, and Foreclosure

C.     Equitable Right of Redemption, Foreclosure, and Statutory Redemption

D.    Statutory Redemption, Foreclosure, and Equitable Right of Redemption

Principles Ch14 quiz

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1 of 10 Which of the major warehousing agencies in the Secondary Market are not regulated by a government agency?

A.    Federal National Mortgage Association (Fannie Mae)

B.     Government National Mortgage Association (Ginnie Mae)

C.     Federal Home Loan Mortgage Corporation (Freddie Mac)

D.    None of the Above

2 of 10 Bruce, a private in the US Army, has applied for his Certificate of Eligibility and been approved. He wants to purchase a condo for himself. What’s the maximum amount lenders will loan Bruce, based on his veteran status?

A.    A veteran’s basic entitlement is $100,000. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $400,000.

B.     A veteran’s basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $417,000.

C.     A veteran’s basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $425,000.

D.    A veteran’s basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $550,000.

3 of 10 Gerald, a sergeant in the Marine Corps, is getting married and wants to purchase a home. How does he begin the process of getting a VA loan? What follows?

A.    Gerald must have the home appraised and be issued a Certificate of Reasonable Value. He then must apply for the loan through the financial institution of his choice.

B.     Gerald must first apply for a Certificate of Eligibility to obtain a VA loan. The home must qualify with an appraisal and be issued a Certificate of Reasonable Value.

C.     Gerald only need to fill out the necessary paperwork through the Veteran’s Administration Office in his area.

D.    None of the Above

4 of 10 What is the major difference between a VA Loan and a FHA Loan?

A.    FHA insures repayment of the loan; VA guarantees repayment of the loan.

B.     FHA guarantees repayment of the loan; VA insures repayment of the loan.

C.     FHA lends the money for the actual loan; VA guarantees repayment of the loan.

D.    FHA insures repayment of the loan; VA lends the money for the actual loan.

5 of 10 At the present time, funds are limited for CalVet Program mortgage loans. A decision must be made to give one veteran a loan over another. Veteran A has been in the military service for 20 years and is a four-time decorated hero. He wants to buy an Oregon farm with the loan. Veteran B has been in the military four years. He lost his right leg in a battle in Afghanistan. He wants to buy a small home in Las Vegas for himself and his mother, who will live with him. Which veteran will they choose and why?

A.    Veteran A will be chosen based on his years of service, his decoration, and his desire to buy a farm.

B.     Veteran A will be chosen because he is still on active duty; Veteran B has received a discharge from service, making him less desirable for the program’s loan.

C.     Veteran B will be chosen because his family members will take priority due to his injury.

D.    Neither will be chosen for the loan because both are planning on buying homes outside the state.

6 of 10 Which of the following are functions of the Federal Reserve?

A.    Buying/Selling of Securities and Discount Rates

B.     Participation Financing

C.     Debt Coverage

D.    Oversees Lending Laws

7 of 10 Jeanne and Mark are buying a home. They’ve been told their mortgage payment will be $1,072 per month. There’s also an additional amount of $335.62 being added to the monthly payment, bringing their total to $1,407.62. It was explained the additional $335.62 is to cover insurance and property taxes. Which loan definition applies?

A.    Estoppel

B.     Disintermediation

C.     Impounds

D.    In Contract

8 of 10 Conchita is applying for a VA loan. She has served in the military, on active service, for ninety days. She is trying to buy a town home near her base for easier commuting. The town home has qualified with an appraisal and has been issued a Certificate of Reasonable Value. Will Conchita be considered for a VA loan?

A.    Yes, she has met all of the criteria for a Certificate of Eligibility.

B.     No, she has not served the 181 days of active service required.

C.     No, she has not been approved for a Certificate of Eligibility.

D.    None of the Above

9 of 10 MTH Bank has given the McKelvey’s a written pledge to lend $250,000 on a new construction home, for 30 years, at 6.53%. The McKelvey’s will now present this pledge to the subdivision’s sales agent to continue with their new home’s construction. Which loan definition applies?

A.    Conditional Approval

B.     Underwriting

C.     Exculpatory Clause

D.    Non-Recourse Clause

10 of 10 Jan is moving into a new home. Her husband recently died during military service in the Middle East. She cannot afford a very large down payment at this time, but wants to get her children into their first home to provide some stability after the loss of their father. What are Jan’s options?

A.    Jan qualifies for an FHA loan, if her income is adequate. There is usually a small down payment required.

B.     Jan qualifies for a VA loan due to her status as a veteran’s unmarried widow. The VA loan does not require a down payment.

C.     Jan cannot qualify for both types of loans.

D.    Both A and B

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