1. Sally submits a loan application to Honest Bank. Over the next few days, she has several phone conversations with Honest Bank about the application. One week after filing her application, she receives a Loan Estimate and a Home Loan Toolkit. Based on RESPA, what has happened?

Honest Bank failed to provide required disclosures within the three-day window

Honest Bank failed to provide required disclosures within the five-day window

Honest Bank fully complied with RESPA by providing disclosures within the seven-day window

Honest Bank cured any RESPA violations by talking with Sally

2. Gretta is reading a loan estimate provided by her lender. She learns that over the life of her loan, she will pay 67% of the borrowed amount as a cost of financing the loan. What does the 67% figure represent?

The interest rate of the loan

The APR or annual percentage rate

The down payment she must pay

The TIP or total interest percentage

2 of 40

3. What is the seller's primary interest at closing?

To sign the deed to the buyer

To get title insurance

To pay off the buyer's loan

To pay everyone who must be paid to close and collect the net proceeds check

4. The amount of interest paid per year is equal to which of the following?

The loan amount divided by the interest rate

The loan amount divided by 360 days

The loan amount multiplied by 360 days

The loan amount multiplied by the interest rate

5. For the Closing Disclosure to be complete and accurate, the seller's total credits and debits must add up to what amount?

Zero dollars

The mortgage amount

The purchase price

The net proceeds

6. Which aspect of buying real property makes title searches so important?

Real property is expensive

Buying property requires paperwork

Sellers can't be trusted

Property boundaries are hard to define

7. What is RESPA's primary mechanism for making sure borrowers make informed decisions?

Disclosure requirements

Lawsuits

Fees and penalties

Regulatory oversight

8. In most real estate transactions, which party makes the closing financially feasible?

The seller

The lender

The title insurer

The buyer

9. Generally, how many land record offices will a title searcher have to visit to search a title?

Three

Two

Depends on the state

One

10. Horace is searching a title for a property belonging to Jones. He has found deeds from Trainer to Eastwood, from Eastwood to Dillinger, from Cuthbert to Trainer, from Smith to Kensington, and from Kensington to Jones. How is the chain of title?

Lost

Unbroken

Unlocked

Broken

11. What is the primary piece of information the settlement agent must provide on a 1099-S?

The net proceeds of the sale

The gross proceeds of the sale

The taxable proceeds of the sale

The deductions attributable to the sale

12. A buyer asks Polly to conduct a title search on a property. After searching the land records, she finds a warranty deed granting title to the seller, an existing undischarged mortgage deed from the seller, an easement granting a neighbor the permanent right to drive across the property, an easement from an electric company granting the company the right to erect and maintain a line of electric poles crossing the property, and a discharged tax default that the land records show the seller paid in full. Is this title likely to be marketable?

No. The land records show too many other interests involved.

No. The tax default is a deal breaker.

Yes. As long as the seller has a warranty deed, the title is marketable.

Yes. Although local law controls, a reasonable buyer would likely accept this title if the mortgage loan is paid at closing.

12 of 40

13. What does the title system help potential buyers, potential lenders, and the public find out?

When a property will be available for sale

How to reach a seller

Whether a seller is honest

Who has interests in a particular property

14. If the closing is set for September 10th, how many days of collected rent will be credited towards the buyer at closing?

10 days

20 days

0 days

30 days

15. RESPA requires lenders to provide what disclosure within three days of receiving a loan application?

A loan estimate

A money-back guarantee

A warning about unscrupulous lenders

A settlement estimate

16. A property is set to close on August 9th. How many days of interest will the buyer have to pay on their new loan at closing if their first mortgage payment is not due until October1st?

31 days

22 days

9 days

0 days

17. The process by which all the parties to a real estate transaction conclude the details of a sale or mortgage is known as the...?

Commitment

Escrow

Settlement

Closing

18. What does RESPA stand for?

Real Effective Sales Promotion Act

Real Estate Security Procedures Action

Real Estate Settlement Procedures Act

Real Estate Sales Protection Association

19. The seller's outstanding mortgage interest payment will be marked as a .........on the settlement statement.

Prepayment

Debit

Refund

Credit

20. Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept is known as...?

Executed title

Settled title

Marketable title

Opinion of title

21. The parties have scheduled a closing for a home sale on Tuesday, the day after President's Day. By when must the lender give the borrower a Closing Disclosure?

Saturday

Thursday

Friday

Wednesday

22. What items will the seller's column in the Loan Costs section of the Closing Disclosure usually contain?

The credit report fee

The title search fee

The origination fee

None, usually

23. How many pages is a Closing Disclosure?

One-third of a page

Five pages, as required by RESPA

As many pages as it needs to be

Three pages, as required by RESPA

24. What is the lender's primary interest at closing?

To see that the real estate agent gets paid

To execute the deed

To protect its security interest in the property

To make sure the buyer is protected

25. Which item will the settlement agent most likely adjust to ensure the buyer's side of the Closing Disclosure balances properly?

Cash to Seller

Closing costs

Cash from Buyer

Loan amount

26. Javier buys Tina's house for $325,000. How would we characterize the $325,000 payment from each person's point of view?

A debit for both

A credit for both

A credit for Javier and a debit for Tina

A debit for Javier and a credit for Tina

27. We use a certain method for distributing property costs that are incurred over time but paid at discrete intervals. What is the name of that method?

Coordination

Recalculation

Proration

Estimation

28. Which of the following pays the seller a credit at closing for the remaining days left on their insurance policy?

The buyer

The seller's insurance company

The seller's attorney

The seller will not receive a credit from any party

29. What is the relationship between RESPA and the Closing Disclosure?

RESPA requires the lender to give the buyer the Closing Disclosure

RESPA recommends that lenders use the Closing Disclosure at closings

RESPA requires the seller to give the buyer the Closing Disclosure

RESPA doesn't mention the Closing Disclosure

30. Janice and Shawn attend a closing. At the closing, Janice and Shawn are interested in making sure the seller's title is marketable, all the loan documents are executed properly, and the seller's loan is paid in full. If Janice and Shawn occupy two different roles, which two are they likely to occupy?

Title insurer and real estate agent

Settlement agent and seller

Buyer and seller

Buyer and lender

31. Hazard insurance premiums are prorated based on...?

January 1st

the end of the closing month

the date the policy was issued

December 31st

32. From the lender's point of view, which are the most important documents at the closing table?

The settlement statement and the outgoing checks

The deed and the settlement statement

The title insurance policy and the deed

The mortgage and the promissory note

33. Which of the following interests found in a title search is the most likely to affect the marketability of title for a property?

Missing carbon monoxide detectors

A utility easement granted to an electric company

A right to use well water granted to a neighbor

A federal tax lien

34. Hansel is buying a house. The Closing Disclosure indicates the cash needed to close from the buyer is $12,443.76. Hansel comes to closing with a check for $12,343.76. What is the most likely result?

The settlement agent will adjust the Closing Disclosure to reduce the cash from buyer needed to close.

The seller will terminate the deal.

The transaction cannot close unless Hansel brings another $100.

Closing will occur as scheduled. The settlement agent will just issue an IOU for the missing $100.

35. Technically, RESPA applies to all "federally related mortgage loans." As a practical matter, to what does RESPA apply?

Real estate sales involving cash

All real estate transactions

Every real estate transaction involving a mortgage

Most sales of one-to-four family residences

36. If a borrower pays $12,690 in interest annually, how much is paid per diem?

$136.45 (Dollars)

$34.77 (Dollars)

$1,057.50 (Dollars)

$35.25 (Dollars)

36. If a borrower pays $12,690 in interest annually, how much is paid per diem?

$136.45 (Dollars)

$34.77 (Dollars)

$1,057.50 (Dollars)

$35.25 (Dollars)

38. Glenn attends a closing for the sale of a house. Glenn brings a check and a stack of papers to closing. At closing, another person signs all the papers that Glenn brought. Glenn gives the check to the settlement agent. The settlement agent cuts a number of checks. At the end of the closing, Glenn takes back the now-signed stack of papers that he brought to closing. Who is Glenn?

The seller

The lender

The buyer

The real estate agent

39. From the buyer's point of view, which is the most important document at the closing table?

The settlement statement

The title insurance policy

The outgoing checks

The deed

40. Bob the buyer, Sally the Seller, and Morty the Mortgage Lender are at the closing on a house sale. No one else is present or expected to come. Who is most likely to be responsible for filing Form 1099-S?

Bob

None of them

Sally

Morty

Please you do not need to put explanations!!!!!!