157. A deed of trust

A. is evidence of a debt.

B. never contains an alienation clause.

C. is the same thing as a promissory note.

D. pledges the property as collateral to secure a mortgage loan.

158. Funds for FHA-insured mortgage loans are typically provided by

1. the FHA.

2. the seller.

3. an approved lender.

4. the Federal Reserve.

159. FHA mortgage loans

1. insure the mortgage lender against loss if the borrower defaults on the loan.

2. have interest rates set by the Department of Housing and Urban Development.

3. can be funded directly to the borrower if there is no local FHA-approved lender.

4. have a maximum loan to value ratio lower than on most conventional mortgage loans.

160. Which of the following statements in a brokers advertisement for real property would be compliant with Regulation Z requirements?

A. No money down and $985 per month

B. Only $75 per month for homeowners dues

C. A down payment of $5,000 and monthly payments of $853

D. Conventional loans available with payments as low as $760 per month

161. Loan fraud

A. occurs only when an appraiser is involved.

B. prosecution is only possible on loans from federal banking institutions.

C. is a misdemeanor punishable by a fine imposed by a local regulatory agency.

D. is using misrepresentation to obtain a larger loan than lender guidelines allow.

162. The TILA-RESPA Integrated Disclosure (TRID) rules require the Loan Estimate (LE) be

A. corrected if any quoted settlement costs increase more than 10 percent.

B. given to the borrower as soon as the borrower pays the loan application fee.

C. provided to the borrower no later than 3 business days after loan application.

D. issued by the lender to the borrower and the buyers agent within 5 days of loan application

163. Which of the following statements about a short sale transaction is TRUE?

A. Sellers lien holder must forgive the seller for any shortfall.

B. Sale proceeds are insufficient to pay off all liens secured by the property.

C. The possibility of a short sale is not a material fact until a contract makes it a short sale.

D. Seller must bring additional funds to settlement to satisfy all liens secured by the

property