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52 Matching questions

  1. The difference between market value and assessed value is:
  2. C. the loan originator has three business days to give the loan applicant a loan estimate and a copy of the settlement information booklet
  3. What is external obsolescence?
  4. CMA
  5. External disclosure
  6. When performing the cost approach, the estimated land value is determined using:
  7. A licensee performing a CMA would do which of the following to assist the seller at arriving at a listing price?
  8. Which law is designed to regulate the informed use of credit?
  9. Regulation Z
  10. B. the market is fluid and can respond quickly to changes in supply and demand
  11. RESPA
  12. Sales Comparison Approach
  13. A. VA or FHA
  14. B. functional obsolescence
  15. Secondary mortgage market
  16. FHA
  17. Cost Approach
  18. B. intermediation
  19. C. payment collection and record keeping related to the loan
  20. A. Interest rates are set by the market based on supply and demand
  21. Warehousing
  22. Physical deterioration
  23. C. Federal Reserve
  24. B. Short-term rates will likely decrease
  25. A. CMA
  26. D. Sellers may NOT pay closing costs if the buyer finances via FHA or VA
  27. A. different geographic areas
  28. A. assign an amount of depreciation to the land
  29. B. highest and best use
  30. The appraisal approach based on the premise that an informed buyer will pay up to the fair market value for a property with the same utility is:
  31. Comparative square-foot
  32. APR
  33. Replacement cost
  34. VA
  35. B. the price at which most buyers would trade money for real estate, goods or services
  36. Reproduction cost
  37. C. Real Estate Settlement Procedures Act (RESPA)
  38. C. $215,000
  39. B. within three business days
  40. Closing disclosure/ HUD-1
  41. Under what condition may a real estate licensee charge a fee for completing a CMA?
  42. HUD
  43. Appraiser has determined that the cost to correct a design problem is greater than the resulting effect on value. Appraiser will note this on the appraisal as:
  44. A. arm's-length
  45. Escape Clause
  46. Appraiser has been assigned to perform an appraisal on the historic county courthouse building. Appraiser will use which approach to value?
  47. B. perfectly legal
  48. A. the availability and cost of money and credit
  49. Freddie Mac
  50. Market Value
  51. Appraisal
  52. Servicing
  1. a 12. Servicing the mortgage refers to:
    A. providing customer service at a bank
    B. opening a home equity account
    C. payment collection and record keeping related to the loan
    D. sending a monthly check to a lien holder
  2. b 21. The borrower has the right to cancel a home equity line of credit:
    A. never
    B. within three business days
    C. within 10 days
    D. up to one month after closing
  3. c 17. A person applies for a mortgage loan at a mortgage broker's office. The loan originator did not give the loan applicant a Loan Estimate or information booklet at the time of loan application. Which statement is TRUE regarding this situation?
    A. The loan originator can ignore the situation because mortgage brokers are exempt from RESPA
    B. The loan originator violated the federal fair housing act
    C. the loan originator has three business days to give the loan applicant a loan estimate and a copy of the settlement information booklet
    D. The applicant may take legal action against the mortgage broker for malpractice
  4. d A uniform measure of the cost of credit that includes interest and finance charges
  5. e 14. Exchange value is:
    A. the cost to trade housing units
    B. the price at which most buyers would trade money for real estate, goods or services
    C. the average closing costs
    D. the business cost of accepting the exchange of retail items
  6. f 15. Which of the following takes into account recently sold similar properties and expired listings?
    A. CMA
    B. Cost approach
    C. Income approach
    D. Sales comparison approach
  7. g The law that requires disclosures of loan terms and costs, including APR
  8. h The market where mortgages are purchased from primary lenders to supplement the mortgage and lending process
  9. i The cost to build a replica with the same or highly similar materials
  10. j The law that created standardized closing practices on federally related residential loans
  11. k 18. Which type of loan is MOST likely to be assumable by a qualified buyer?
    A. VA or FHA
    B. conventional
    C. blanket
    D. insured conventional
  12. l 30. A transaction between two unrelated parties is known as:
    A. arm's-length
    B. lease-option
    C. exclusive-agency
    D.transaction-broker
  13. m A formal estimate or opinion of value supported by an analysis of relevant property data
  14. n Formerly known as the Federal Home Loan Mortgage Corporation, this government-sponsored enterprise provides liquidity to the mortgage market
  15. o Cost approach
  16. p The organization that guarantees loans up to 100% LTV to qualified veterans
  17. q Adjust the comparable up or down to the subject
  18. r Reduction in value due to locational factors
  19. s A lender uses a short-term loan from a commercial bank to fund its loan commitments
  20. t comparable sales
  21. u The most important method for appraising unique or special-purpose properties
  22. v The government organization that provides mortgage default insurance on loans from approved leaders to qualified borrowers
  23. w 25. What agency has the power to control the supply of money, the cost to borrow money, and the availability and cost of credit?
    A. HUD
    B. FHA
    C. Federal Reserve
    D. Congress
  24. x 24. If the Federal Reserve votes to lower the discount rate, how will this likely affect interest rates on short-term credit?
    A. Short-term rates will likely increase
    B. Short-term rates will likely decrease
    C. There will likely be no effect on short-term rates because the discount rate affects mortgage rates only
    D. There will likely be no effect on short-term rates because the discount rate is charged directly to lenders
  25. y 19. When used in credit advertising by a real estate licensee, the phrase "Owner will finance" is:
    A. a violation of fair housing laws
    B. perfectly legal
    C. a trigger term requiring full disclosure
    D. an act of fraud or misrepresentation
  26. z 23. Financial middlemen have consolidated many small savings accounts belonging to individual depositors and investing those funds in large, diversified projects. This is:
    A. disintermediation
    B. intermediation
    C. remediation
    D. depreciation
  27. aa incurable functional obsolescence
  28. ab Sales comparison approach
  29. ac An informal estimate of market value performed by a real estate licensee to assist in arriving at an appropriate price
  30. ad The approach to value in which similar properties that have recently sold are compared to the subject property
  31. ae 13. The comparative square-foot method of estimating reproduction cost relies upon published cost manuals to adjust for:
    A. different geographic areas
    B. marginal utility
    C. time on the market
    D. deterioration
  32. af The highest price in terms of cash or its equivalent that a willing buyer would pay and a willing seller would accept
  33. ag 27. While performing the cost approach to estimate the value of a rural residential property, the appraiser would NOT:
    A. assign an amount of depreciation to the land
    B. estimate the cost to build new
    C. deduct for physical deterioration
    D. deduct accrued depreciation from the cost to build new
  34. ah Reduction in value based upon factors related to the property's location
  35. ai 10. Which of the following is true about conventional, VA and FHA loans?
    A. Interest rates are set by the market based on supply and demand
    B. Conventional loans MUST have a higher interest rate than FHA or VA loans
    C. Conventional, VA, and FHA loans are all insured or guaranteed through the government
    D. Fannie Mae and Freddie Mac give FHA and VA loans
  36. aj A loss in value due to wear and tear
  37. ak The cost to replace improvements with others of similar quality but that are not an exact replica
  38. al 22. Monetary policy set by the Federal Reserve is designed to influence:
    A. the availability and cost of money and credit
    B. judicial overview
    C. leverage
    D. social influences
  39. am 20. The law that requires the disclosure of settlement costs and requires the settlement agent to use the Closing Disclosure or HUD-1 is:
    A. Regulation Z
    B. Federal Fair Housing Act
    C. Real Estate Settlement Procedures Act (RESPA)
    D. Uniform Closing Standards Act
  40. an Regulation Z
  41. ao The clause in both FHA and VA loans that allows the applicant to cancel the agreement in the loan cannot be obtained
  42. ap The agent discloses that it is not an appraisal
  43. aq The uniform settlement statements required by the Real Estate Settlement Procedures Act
  44. ar market value is the price a property will likely be sold for and assessed value is for ad valorem taxes
  45. as The federal department that oversees the secondary mortgage market, FHA, VA and fair housing laws
  46. at 26. Which would be an INCORRECT statement about characteristics of real estate?
    A. the geographic location is fixed
    B. the market is fluid and can respond quickly to changes in supply and demand
    C. each parcel is unique
    D. government controls have an impact on the real estate market
  47. au The process of loan correspondents collecting payments, disbursing taxes and insurance and keeping records on behalf of the mortgage holder
  48. av The method of estimating reproduction cost through information contained in a published cost manual
  49. aw 11. A Comparable property recently sold for $210,000. Compared with the subject property, the comparable is built of superior materials valued at $10,000. The comparable also has less square footage than the subject property, valued at $15,000. What is the adjusted sale price of the comparable?
    A. $185,000
    B. $205,000
    C. $215,000
    D. $235,000
  50. ax 28. Which is an INCORRECT statement regarding FHA and VA mortgages:
    A. FHA and VA lenders may NOT charge a prepayment penalty
    B. FHA and VA mortgages are assumable
    C. FHA insures mortgages; VA mortgages are guaranteed by the government
    D. Sellers may NOT pay closing costs if the buyer finances via FHA or VA
  51. ay 16. A home has outdated electric service and faulty plumbing. Which type of depreciation will the appraiser likely consider?
    A. physical deterioration
    B. functional obsolescence
    C. curable external obsolescence
    D. incurable economic obsolescence
  52. az 29. The legal, possible, financially feasible use of a property with the maximum utility is its:
    A. market value
    B. highest and best use
    C. zoning classification
    D. habendum