1 The goals, anticipations and positions of of real estate are diametrically opposed a) brokers and sellers b) lenders and owners c) brokers and the commissioner d) None of the above 2 refers to a limit placed on a property owner's ability to sell, lease for a period exceeding three years or further encumber a property, as permitted by federal mortgage policy a) Restraint on alienation b) Choice of law provision c) Qualifying ratio d) Trustworthiness 3 As mortgage underwriting standards became lax during the Millennium Boom and underqualified tenants were lured into homeownership, became more common a) prime mortgages b) subprime lending c) seller financing d) blanket mortgages 4 refers to a lengthy period of weak economic growth a) Financial crisis b) Trickle down economics c) The Millennium Boom d) Secular stagnation 5 The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) applies to mortgages secured by one to four unit residential property made primarily for funding a(n) use a) personal b) family c) household d) All of the above 6 When a California Bureau of Real Estate (CalBRE) licensee negotiates a residential mortgage for a fee, they are required to obtain a(n) a) Department of Housing and Urban Development (HUD) license b) Consumer Financial Protection Bureau (CFPB) credential c) mortgage loan originator (MLO) endorsement d) Regulation X (Reg X) certification 7 The created the Consumer Financial Protection Bureau (CFPB) in response to the Millennium Boom a) Dodd Frank Wall Street Reform and Consumer Protection Act (Dodd Frank) b) California Bureau of Real Estate (CalBRE) c) Department of Housing and Urban Development (HUD) d) Federal Reserve (the Fed) 8 Under a(n) , periodic payments of principal and interest are made until the principal is paid in full by amortization or a final balloon payment a) straight note b) sleeper note c) balloon note d) installment note 9 A(n) calls for the buyer to periodically pay interim interest at a fixed rate, then when the principal balance is due, to further pay the mortgage holder additional interest calculated as a fraction of the property's increased net value since origination a) shared appreciation mortgage (SAM) b) graduated payment mortgage (GPM) c) all inclusive trust deed (AITD) note d) straight note 10 A document given as evidence of a debt owed by one person to another is called a(n) a) note b) promissory note c) Either a or b d) Neither a nor b 11 A(n) in a note converts a mortgage holder's recourse paper into nonrecourse paper a) equitable assignment b) beneficiary statement c) exculpatory clause d) guarantee agreement 12 A(n) is an attachment to a note occurring between preparation of the note and closing the transaction providing information necessary to update entries on the note at the time it becomes effective a) forbearance b) allonge c) execution d) mutual agreement 13 is needed to assure a mortgage holder of the continued priority of their trust deed lien relative to the other interests on title to the real estate a) Title insurance b) Homeowner's insurance c) Hazard insurance d) Private mortgage insurance (PMI) 14 A(n) provides a mortgage holder the right to charge a property owner when they pay off the outstanding principal balance on a mortgage early a) grace period b) late charge provision c) prepayment penalty provision d) subordination provision 15 A prepayment penalty period is limited to after origination of a qualified mortgage (QM) with a fixed interest rate a) three years b) two years c) one year d) five years 16 A provision in a note which prohibits prepayment and early satisfaction of the mortgage debt is referred to as a(n) a) mortgage insurance premium b) lock in clause c) due on clause d) advance fee 17 A provision in a note which calls for an additional charge if payment is not received by the mortgage holder when due or within a grace period after which the payment is delinquent is called a(n) a) lock in clause b) late charge provision c) prepayment penalty d) subordination provision 18 Reasonable monetary losses collectible as a late charge include the actual out of pocket expenses incurred in a collection effort and a) the lost use of the principal and interest (PI) portion of the delinquent payment until paid b) additional penalty amounts imposed to discourage further late payments c) Both a and b d) Neither a nor b 19 For any mortgage not made or arranged by a broker and secured by an owner occupied single family residence (SFR), the late charge is limited to the greater of a) $30 or 10 of the delinquent interest installment b) $25 or 8 of the delinquent principal installment c) $5 or 6 of the delinquent principal and interest installment d) $50 or 3 of the delinquent principal and interest installment 20 Any final payment on a mortgage more than twice the amount of any of the six preceding regularly scheduled payments is classified as a(n) a) balloon payment b) redemption payment c) reinstatement payment d) partial payment 21 A(n) is the device used to secure payment of the debt by a parcel of real estate a) quitclaim deed b) promissory note c) trust deed d) sticky note 22 The person entitled to performance of the promised activities referenced in a trust deed, such as the repayment of debt evidenced by a note, is the a) trustee b) beneficiary c) payor d) loan servicer 23 The imbalance in bargaining power between lenders and borrowers led California courts to develop special rules for interpreting rights and obligations under trust deeds a) equality b) adhesion contract c) adhesive contract d) non discriminative 24 A(n) in a mortgage calls for the property owner to make a monthly deposit with the mortgage holder sufficient to accumulate funds for the periodic payment of hazard and mortgage insurance premiums, property taxes or assessment bonds a) choice of law provision b) impound provision c) put option d) savings provision 25 A consumer mortgage holder is required to pay on any balance in an impound account a) 2 annual simple interest b) 6 annual simple interest c) 5 annual compounding interest d) 2 monthly compounding interest 26 A(n) in a trust deed gives the beneficiary the right to collect rental income from an income producing property after the owner defaults on a mortgage payment a) future advances provision b) right of first refusal provision c) defrayment of rents provision d) assignment of rents provision 27 If an owner files for bankruptcy protection before their mortgage holder enforces the assignment of rents provision, the mortgage holder retains a security interest in the post petition rents collected by the owner or bankruptcy trustee since they are considered a) liquidated damages b) cash collateral c) windfall profits d) property of the court 28 A(n) is a written disclosure made by a mortgage holder regarding the condition of a debt owed to them, usually evidenced by a note a) novation agreement b) beneficiary statement c) short sale agreement d) payoff demand statement 29 The private lender who holds a grant deed as the device used to secure repayment of the funds they advance has concerns which include a) possible usury claims b) the need to foreclose judicially c) tax reporting as an owner or lender d) Any of the above 30 A(n) transaction occurs when an owner occupant transfers title of a one to four unit residential property in foreclosure to a buyer for rental, investment or dealer purposes a) equity purchase (EP) b) short sale c) mortgage cramdown d) lease option 31 A due on clause may be triggered by a lease a) with a term over three years b) for any term when coupled with an option to buy c) Either a or b d) Neither a nor b 32 The due on clause is not triggered by an owner's transfer of their one to four unit residential property to a spouse or child who occupies the property, known as the a) investment purpose transfer exception b) replacement property transfer exclusion c) inter family transfer exception d) communal transfer exclusion 33 A written assumption agreement with a mortgage holder involving consumer purpose financing controlled by Regulation Z (Reg Z) is subject to a) verification of the assuming buyer's ability to repay the mortgage based on Reg Z Ability to Repay (ATR) rules b) new disclosures by the mortgage holder to the assuming buyer based on the remaining obligation c) Both a and b d) Neither a nor b 34 A promise given by the buyer to the seller to perform the terms of the mortgage the buyer is taking over is called a(n) a) lender seller assumption agreement b) buyer seller assumption agreement c) rate lock provision d) takeover agreement 35 For a buyer to assume a U S Department of Veterans Affairs (VA) mortgage, a fee of of the mortgage balance is to be paid to the VA by the buyer a) 0 5 b) 1 c) 1 5 d) 2 36 A security device which perfects a lien on personal property against later claims is known as a(n) a) UCC 2 Change Form (UCC 2) b) Information Request Form (UCC 11) c) UCC Lien Acknowledgement (UCC 7) d) UCC 1 Financing Statement (UCC 1) 37 When a seller carries back a mortgage for the unpaid portion of the sales price remaining on closing, this is referred to as a) an installment sale b) seller financing c) a credit sale d) All of the above 38 A(n) is a type of seller financing arrangement in which the note entered into by the buyer in favor of the seller includes any trust deed debts remaining of record with the seller retaining responsibility for their payment a) non inclusive trust deed (NITD) b) all inclusive trust deed (AITD) c) underriding note d) blanket mortgage 39 A(n) is an agreement entered into by a mortgage holder to permit their security interest in title to the mortgaged property to take an inferior position to another encumbrance a) assumption agreement b) exchange agreement c) subordination agreement d) substitution agreement 40 If a mandated is not included on a carryback sale of a one to four unit residential property, a statutory contingency is triggered giving the buyer the right to cancel the transaction until it is signed by the buyer and the seller a) Carryback Disclosure Statement b) Referral Fee Agreement c) As is disclosure d) All of the above 41 The seller's agent prepares a(n) to demonstrate the financial risk facing the seller if the buyer defaults and the seller forecloses a) foreclosure cost sheet b) conflict of interest disclosure c) deed in lieu of foreclosure d) balance sheet 42 , also known as a blanket mortgage, may be used by the buyer to secure the carryback note with one trust deed describing multiple parcels of real estate as security for payment of the carryback note a) A UCC 1 Financing Statement (UCC 1) b) A multi purpose loan c) Cross collateralization d) Criss crossing 43 Without the mortgage holder's prior written waiver of their due on enforcement rights triggered by future transfers, the mortgage holder can a) threaten the property owner with a lawsuit b) call the mortgage immediately due c) immediately foreclose without notice d) call the mortgage due on a later transfer of the buyer's interest in the property 44 Carryback disclosure statements are optional in carryback transactions creating straight notes which a) do not bear interest b) include finance charges c) Both a and b d) Neither a nor b 45 A seller intending to carryback a mortgage is concerned with the buyer's loan to value (LTV) ratio and the a) buyer's age b) buyer's ability to pay c) number of persons who will occupy the property d) amount of interest they will receive annually 46 On a carryback transaction, the seller's ownership interest is conveyed in exchange for a mortgage holder's lien on title to the property, called a(n) a) tenancy in common b) security interest c) mechanic's lien d) right of first refusal 47 Defaults on a seller carryback mortgage include the buyer's failure to pay installments on the carryback note and a) maintain the property b) pay property taxes and hazard insurance premiums c) pay senior mortgage holders d) All of the above 48 A property's income and expenses are analyzed by using a(n) to determine the property's ability to carry its debt service a) balance sheet b) conflict of interest statement c) Annual Property Operating Data Sheet (APOD) d) title report 49 A buyer's net worth is displayed in their , indicating the total value of their assets minus their total debt obligations or liabilities a) net sheet b) balance sheet c) data sheet d) bank statements 50 When the balance on an all inclusive trust deed (AITD) sinks below the balance on a wrapped loan, a(n) occurs a) inverse order of alienation b) negative gain c) subordination d) crossover

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1. The goals, anticipations and positions of _______________ of real estate are diametrically opposed. a) brokers and sellers b) lenders and owners c) brokers and

1. The goals, anticipations and positions of _______________ of real estate are diametrically opposed.
a) brokers and sellers
b) lenders and owners
c) brokers and the commissioner
d) None of the above.
2. _______________ refers to a limit placed on a property owner's ability to sell, lease for a period exceeding three years or further encumber a property, as permitted by federal mortgage policy.
a) Restraint on alienation
b) Choice-of-law provision
c) Qualifying ratio
d) Trustworthiness
3. As mortgage underwriting standards became lax during the Millennium Boom and underqualified tenants were lured into homeownership, _______________ became more common.
a) prime mortgages
b) subprime lending
c) seller financing
d) blanket mortgages
4. _______________ refers to a lengthy period of weak economic growth.
a) Financial crisis
b) Trickle-down economics
c) The Millennium Boom
d) Secular stagnation
5. The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) applies to mortgages secured by one-to-four unit residential property made primarily for funding a(n) _______________ use.
a) personal
b) family
c) household
d) All of the above.
6. When a California Bureau of Real Estate (CalBRE) licensee negotiates a residential mortgage for a fee, they are required to obtain a(n):
a) Department of Housing and Urban Development (HUD) license.
b) Consumer Financial Protection Bureau (CFPB) credential.
c) mortgage loan originator (MLO) endorsement.
d) Regulation X (Reg X) certification.
7. The _______________ created the Consumer Financial Protection Bureau (CFPB) in response to the Millennium Boom.
a) Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)
b) California Bureau of Real Estate (CalBRE)
c) Department of Housing and Urban Development (HUD)
d) Federal Reserve (the Fed)
8. Under a(n) _______________, periodic payments of principal and interest are made until the principal is paid in full by amortization or a final/balloon payment.
a) straight note
b) sleeper note
c) balloon note
d) installment note
9. A(n) _______________ calls for the buyer to periodically pay interim interest at a fixed rate, then when the principal balance is due, to further pay the mortgage holder additional interest calculated as a fraction of the property's increased net value since origination.
a) shared appreciation mortgage (SAM)
b) graduated payment mortgage (GPM)
c) all-inclusive trust deed (AITD) note
d) straight note
10. A document given as evidence of a debt owed by one person to another is called a(n):
a) note.
b) promissory note.
c) Either a. or b.
d) Neither a. nor b.
11. A(n) _______________ in a note converts a mortgage holder's recourse paper into nonrecourse paper.
a) equitable assignment
b) beneficiary statement
c) exculpatory clause
d) guarantee agreement
12. A(n) _______________ is an attachment to a note occurring between preparation of the note and closing the transaction providing information necessary to update entries on the note at the time it becomes effective.
a) forbearance
b) allonge
c) execution
d) mutual agreement
13. _______________ is needed to assure a mortgage holder of the continued priority of their trust deed lien relative to the other interests on title to the real estate.
a) Title insurance
b) Homeowner's insurance
c) Hazard insurance
d) Private mortgage insurance (PMI)
14. A(n) _______________ provides a mortgage holder the right to charge a property owner when they pay off the outstanding principal balance on a mortgage early.
a) grace period
b) late charge provision
c) prepayment penalty provision
d) subordination provision
15. A prepayment penalty period is limited to _______________ after origination of a qualified mortgage (QM) with a fixed interest rate.
a) three years
b) two years
c) one year
d) five years
16. A provision in a note which prohibits prepayment and early satisfaction of the mortgage debt is referred to as a(n):
a) mortgage insurance premium.
b) lock-in clause.
c) due-on clause.
d) advance fee.
17. A provision in a note which calls for an additional charge if payment is not received by the mortgage holder when due or within a grace period after which the payment is delinquent is called a(n):
a) lock-in clause.
b) late charge provision.
c) prepayment penalty.
d) subordination provision.
18. Reasonable monetary losses collectible as a late charge include the actual out-of-pocket expenses incurred in a collection effort and:
a) the lost use of the principal and interest (PI) portion of the delinquent payment until paid.
b) additional penalty amounts imposed to discourage further late payments.
c) Both a. and b.
d) Neither a. nor b.
19. For any mortgage not made or arranged by a broker and secured by an owner-occupied single family residence (SFR), the late charge is limited to the greater of:
a) $30 or 10% of the delinquent interest installment.
b) $25 or 8% of the delinquent principal installment.
c) $5 or 6% of the delinquent principal and interest installment.
d) $50 or 3% of the delinquent principal and interest installment.
20. Any final payment on a mortgage more than twice the amount of any of the six preceding regularly scheduled payments is classified as a(n):
a) balloon payment.
b) redemption payment.
c) reinstatement payment.
d) partial payment.
21. A(n) _______________ is the device used to secure payment of the debt by a parcel of real estate.
a) quitclaim deed
b) promissory note
c) trust deed
d) sticky note
22. The person entitled to performance of the promised activities referenced in a trust deed, such as the repayment of debt evidenced by a note, is the:
a) trustee.
b) beneficiary.
c) payor.
d) loan servicer.
23. The imbalance in bargaining power between lenders and borrowers led California courts to develop special _______________ rules for interpreting rights and obligations under trust deeds.
a) equality
b) adhesion contract
c) adhesive contract
d) non-discriminative
24. A(n) _______________ in a mortgage calls for the property owner to make a monthly deposit with the mortgage holder sufficient to accumulate funds for the periodic payment of hazard and mortgage insurance premiums, property taxes or assessment bonds.
a) choice-of-law provision
b) impound provision
c) put option
d) savings provision
25. A consumer mortgage holder is required to pay _______________ on any balance in an impound account.
a) 2% annual simple interest
b) 6% annual simple interest
c) 5% annual compounding interest
d) 2% monthly compounding interest
26. A(n) _______________ in a trust deed gives the beneficiary the right to collect rental income from an income-producing property after the owner defaults on a mortgage payment.
a) future advances provision
b) right of first refusal provision
c) defrayment of rents provision
d) assignment of rents provision
27. If an owner files for bankruptcy protection before their mortgage holder enforces the assignment of rents provision, the mortgage holder retains a security interest in the post-petition rents collected by the owner or bankruptcy trustee since they are considered:
a) liquidated damages.
b) cash collateral.
c) windfall profits.
d) property of the court.
28. A(n) _______________ is a written disclosure made by a mortgage holder regarding the condition of a debt owed to them, usually evidenced by a note.
a) novation agreement
b) beneficiary statement
c) short sale agreement
d) payoff demand statement
29. The private lender who holds a grant deed as the device used to secure repayment of the funds they advance has concerns which include:
a) possible usury claims.
b) the need to foreclose judicially.
c) tax reporting as an owner or lender.
d) Any of the above.
30. A(n) _______________ transaction occurs when an owner-occupant transfers title of a one-to-four unit residential property in foreclosure to a buyer for rental, investment or dealer purposes.
a) equity purchase (EP)
b) short sale
c) mortgage cramdown
d) lease-option
31. A due-on clause may be triggered by a lease:
a) with a term over three years.
b) for any term when coupled with an option to buy.
c) Either a. or b.
d) Neither a. nor b.
32. The due-on clause is not triggered by an owner's transfer of their one-to-four unit residential property to a spouse or child who occupies the property, known as the:
a) investment-purpose transfer exception.
b) replacement-property transfer exclusion.
c) inter-family transfer exception.
d) communal transfer exclusion.
33. A written assumption agreement with a mortgage holder involving consumer-purpose financing controlled by Regulation Z (Reg Z) is subject to:
a) verification of the assuming buyer's ability to repay the mortgage based on Reg Z Ability-to-Repay (ATR) rules.
b) new disclosures by the mortgage holder to the assuming buyer based on the remaining obligation.
c) Both a. and b.
d) Neither a. nor b.
34. A promise given by the buyer to the seller to perform the terms of the mortgage the buyer is taking over is called a(n):
a) lender-seller assumption agreement.
b) buyer-seller assumption agreement.
c) rate lock provision.
d) takeover agreement.
35. For a buyer to assume a U.S. Department of Veterans Affairs (VA) mortgage, a fee of _______________ of the mortgage balance is to be paid to the VA by the buyer.
a) 0.5%
b) 1%
c) 1.5%
d) 2%
36. A security device which perfects a lien on personal property against later claims is known as a(n):
a) UCC-2 Change Form (UCC-2).
b) Information Request Form (UCC-11).
c) UCC Lien Acknowledgement (UCC-7).
d) UCC-1 Financing Statement (UCC-1).
37. When a seller carries back a mortgage for the unpaid portion of the sales price remaining on closing, this is referred to as:
a) an installment sale.
b) seller financing.
c) a credit sale.
d) All of the above.
38. A(n) _______________ is a type of seller financing arrangement in which the note entered into by the buyer in favor of the seller includes any trust deed debts remaining of record with the seller retaining responsibility for their payment.
a) non-inclusive trust deed (NITD)
b) all-inclusive trust deed (AITD)
c) underriding note
d) blanket mortgage
39. A(n) _______________ is an agreement entered into by a mortgage holder to permit their security interest in title to the mortgaged property to take an inferior position to another encumbrance.
a) assumption agreement
b) exchange agreement
c) subordination agreement
d) substitution agreement
40. If a mandated _______________ is not included on a carryback sale of a one-to-four unit residential property, a statutory contingency is triggered giving the buyer the right to cancel the transaction until it is signed by the buyer and the seller.
a) Carryback Disclosure Statement
b) Referral Fee Agreement
c) "As-is" disclosure
d) All of the above.
41. The seller's agent prepares a(n) _______________ to demonstrate the financial risk facing the seller if the buyer defaults and the seller forecloses.
a) foreclosure cost sheet
b) conflict of interest disclosure
c) deed-in-lieu of foreclosure
d) balance sheet
42. _______________, also known as a blanket mortgage, may be used by the buyer to secure the carryback note with one trust deed describing multiple parcels of real estate as security for payment of the carryback note.
a) A UCC-1 Financing Statement (UCC-1)
b) A multi-purpose loan
c) Cross-collateralization
d) Criss-crossing
43. Without the mortgage holder's prior written waiver of their due-on enforcement rights triggered by future transfers, the mortgage holder can:
a) threaten the property owner with a lawsuit.
b) call the mortgage immediately due.
c) immediately foreclose without notice.
d) call the mortgage due on a later transfer of the buyer's interest in the property.
44. Carryback disclosure statements are optional in carryback transactions creating straight notes which:
a) do not bear interest.
b) include finance charges.
c) Both a. and b.
d) Neither a. nor b.
45. A seller intending to carryback a mortgage is concerned with the buyer's loan-to-value (LTV) ratio and the:
a) buyer's age.
b) buyer's ability to pay.
c) number of persons who will occupy the property.
d) amount of interest they will receive annually.
46. On a carryback transaction, the seller's ownership interest is conveyed in exchange for a mortgage holder's lien on title to the property, called a(n):
a) tenancy-in-common.
b) security interest.
c) mechanic's lien.
d) right of first refusal.
47. Defaults on a seller carryback mortgage include the buyer's failure to pay installments on the carryback note and:
a) maintain the property.
b) pay property taxes and hazard insurance premiums.
c) pay senior mortgage holders.
d) All of the above.
48. A property's income and expenses are analyzed by using a(n) _______________ to determine the property's ability to carry its debt service.
a) balance sheet
b) conflict of interest statement
c) Annual Property Operating Data Sheet (APOD)
d) title report
49. A buyer's net worth is displayed in their _______________, indicating the total value of their assets minus their total debt obligations or liabilities.
a) net sheet
b) balance sheet
c) data sheet
d) bank statements
50. When the balance on an all-inclusive trust deed (AITD) sinks below the balance on a wrapped loan, a(n) _____________ occurs.
a) inverse order of alienation
b) negative gain
c) subordination
d) crossover