1 24 1 1 9) A deed, note, bond, or money held by a third party until certain conditions are satisfied is known as: O bailment surety O escrow O security 10 2 2 1 93 A developer who owns six unencumbered parcels of land gave a lender one deed of trust on all six properties. This would be known as a/an: O subordinate deed of trust O all-inclusive deed of trust O blanket deed of trust O construction deed of trust19 A group of developers needs a long-term loan of $60 million to build a shopping mall. The most likely source of a loan would be a: O neighborhood bank O local credit union O all the above O life insurance Company 10 RA 4 19) A home buyer contacted the Acme Real Estate Brokerage for assistance in obtaining an FHA loan. Acme would contact: O the department of appraisal O the Bureau of Real Estate (BRE) in Sacramento O an institutional lender O The Federal Reserve Bank chaired by Janet Yellen1 53 A promissory note is security for a deed of trust. O True O False A trustor wishes to transfer the property that he financed with a first deed of trust. He must: O pay the beneficiary in full O all the above O sign and deliver the deed to the buyer O receive the beneficiary's permission 1 5) An appraiser needs to determine the square footage of a house. She should measure the dimensions of the: O outside of the house and garage O inside of the house and garage O none of the above O outside of the house1 24 8 1 5) Apple Corp. owns a parcel of undeveloped land. The CEO of the corporation asks Joe to appraise the land. Joe informs the CEO that he owns stock in Apple Corp. but the CEO is not concerned. Joe should: O appraise the parcel and state in writing his interest in Apple Corp. in the appraisal report O appraise the parcel for free since he owns apple stock O none of the above O refuse the assignment 10 2 9 1 5) Discount points are listed on the settlement statement: O as a credit for the buyer O as a debit for whichever party agreed to pay them O as a credit for whichever party agreed to pay them O as a credit for the seller10 2 10 Fee packing, equity stripping, and balloon payment abuses are all examples of: preapproval techniques O derogatory credit information O predatory lending practices O rate lock-ins 10 In 11 1 9) For conventional loans, private mortgage insurance, PMI, is required when the loan to value LTV, ratio is: O 65% O none of the above O Over 97.5% O higher than 80%10 En 12 Hypothecation regarding Real Estate is best described as? O an arrangement in which title to property is given as collateral for a loan, but borrower retains possession O A construction or interim loan O Escheat Interpleader 10 En 13 1 93 If a lender "calls" a note, that means he: O requires the property to be a "rental" O requires the property to be owner occupied O forgives all payments due O accelerates the loan10 An 14 1 9) If the monthly payments on an adjustable-rate mortgage are insufficient to cover the interest due, the result is: O additional principal payments O a lengthened loan term O a lower loan-to-value ratio O negative amortization 10 RA 15 In a closing statement, the term "recurring costs" refers to: O deed transfer taxes impound items O title insurance O costs common to all escrowsIn determining the net income of a large income property, what itemls} should be deducted from the effective gross income? O Interest payments O Mortgage payments CI Cleaning and landscaping expenses. {operating expenses} O Depreciation Of the following, which would be considered the primary.r purpose of RESPA? O Regulating brokerage services (31 Requiring lenders to make certain disclosures related to loans on 1-4 unit dwellings O Regulating all real estate loans O Requiring lenders to make certain disclosures related to all loans 1 24 18 1 93 On a settlement statement, an earnest money deposit paid by the buyer that will be held by the broker until closing is a: O debit (charge) to the buyer O credit to the buyer O credit to the seller O debit (charge) to the seller 10 RA 19 Otis pays an appraiser to appraise Milo's property. The appraiser should discuss his findings with: O Otis O anyone who requests a copy of the appraisal report O Milo and/or Otis O Milo17 : 20 RESPA prohibits sellers from: O None of the above O insisting on absolutely using a particular title insurance company O Both of the above O asking to possibly use a particular escrow company 10 RA 21 'Secondary mortgage market" refers to: O automobile loans O construction loans O all the above O a resale marketplace for existing mortgages1 RM 22 1 93 The appraisal method that is used to indicate a higher or lower risk for investment/income property is: O principal of contribution O a capitalization rate 10 In 23 1 93 The calculation of effective gross income reflects: O depreciation O repairs and operating costs O taxes vacancies and collection losses1- RA 24 1 93 The first step in the appraisal process is to "define the problem" or "state the problem". O True False 10 In 25 1 9) The loan-to-value ratio of a property is: O the monthly payment amount as a percentage of the appraised value O the loan amount as a percentage of the appraised value, preferably 80% or lower