1.In regards to promissory notes a. a straight note is paid in equal payments until paid in full b. an installment note requires a balloon payment at the conclusion of its term c. the periodic payment on the installment note that reduces interest owed is referred to amortization d. none of the above is accurate

2.when comparing items in the comparable section of the appraisal the following applies;

a. if an item is superior to the subject a minus (-) adjustment is made

b. if an item is superior to the subject a plus (+) adjustment is made

c. if an item is inferior to the subject a minus (-) adjustment is made

d. no adjustments are made but the appraiser must address any differences in his/her comments

3.To qualify for a VA loans, the Department of Veterans Affairs applies a two-phase procedure, namely

a. residual income and qualifying income ratio

b. net take-home pay and residual income

c. total fixed obligations and borrower's living pattern

d. one of the above

4.The act of seasoning funds involves: a. determining the source of the funds b. having the funds in the borrowers account long enough to be consider his/her own funds c. determining that the funds are legal d. requiring the funds to be in the borrowers account for a minimum of 30 days

5.which of the following is the least likely to qualify as income for borrower qualifying purposes

a. public assistance receipts

b. self-employment income

c. income from part-time work

d. straight commission

6.which of the following is a recurring closing cost? a. loan fee b. credit report c. recording fee d. hazard insurance

7.under the Equal Credit Opportunity Act, lenders may ask loan applicants; a. whether they are divorced or widowed b.]whether they are receiving alimony or child support c. whether they are married or unmarried d. whether they plan to have children

8.under the Real Estate Settlement Procedures Act, lenders; a. must give borrowers a written estimate of the closing costs b. may collect reserves of up to three years for taxes and insurance c. may require borrower to purchase title insurance from a particular company d. must furnish a booklet explaining ways to hold title to property

9. A short sale can be described as a. a sale in which the property is sold for less than the amount owed b. a transaction involving less time than the normal transaction c. a sale wherein the seller vacated the property in a short period of time in turn for a fee d. none of the above 10. when a property is offered for sale at a foreclosure auction, which of the following parties is NOT generally allowed to bid; a. any member of the public b. the trustor c. the trustee d. the beneficiary

11.which first trust deed amount is exempt from real property mortgage loan law? a.$10,000 b.$20,000 c.$25,000 d.$30,000

12.Home Warranty programs generally insure: a. all moving components within the dwelling b. roof leaks, if uncovered within three years c. electrical problems, if discovered within five years d. most major components, for up to one year

13. The principal objective of AMIs is to; a. transfer the risk of rising interest rates from borrower to lender b. transfer the risk of rising interest rates from lender to borrower c. overcome loss of purchasing power through inflation d. assure a steady flow of funds in gyrating capital markets 14. the term used to describe situations where a lender defers monthly payments to avoid foreclosure is called; a. forbearance b. modification c.recasting d. compromise 15. Payouts under construction financing typically involve; a. draws as construction progresses b. a lump-sum following the filing of a notice of completion c. installments only after obtaining lien releases from the owner d. fully-amortized repayments 16. upon discovery of a work of improvement made by a tenant without the landlord's permission, the owner should record; a. a Notice of Non-Responsibility within 10 days of discovery b. a Notice of Completion within 90 days of discovery c. a Notice of Non-Completion within 10 days of discovery d. an Unlawful Detainer to evict the tenant 17. under the ARM, the item used to determine if a rate change is warranted is called the: a. index b. margin c. cap d. libor 18.in a sale-leaseback arrangement involving business properties a;. lessors can deduct their lease payments on their tax returns b. lessees can deduct the lease payments on their tax returns c. the buying lessors may give up the right to depreciate future improvements d. the selling lessees deplete their capital 19.under a land contract of sale, title to property is held by; a. the vendor, until the note is repaid b. the vendee, until the note is repaid c. the trustee, until the note is repaid d. the beneficiary, until the note is repaid 20.a disadvantage to the single-family dwelling as a rental is the

a. limited number of purchase choices b. 100% vacancy and rental loss when the dwelling is vacant c. low appreciation rate compared to income properties d. interest that must be paid on any loans

21.rent control ordinances typically impact; a. commercial properties b. residential properties c. shopping centers d. industrial properties 22.the "debt coverage ratio" is calculated by; a. dividing the net operating income by the annual debt service b. dividing the annual debt service by the net operating income c. deducting operating expenses from the gross operating income d. adding operating expenses to gross operating income

23.the periodic reduction of principal is labeled;

a. depreciation b. amortization c. escalation d. appreciation