The method based on the premise that transaction prices of similar properties in the neighborhood are good indicators of value is:

Question 11 options:

1)	the market approach

2)	the income approach

3)	the cost approach

4)	the prices approach

Question 12 (2 points)

A promissory note should be:

Question 12 options:

1)	sold without the mortgage transferred with it

2)	sold with the mortgage transferred with it

3)

not sold

4)	insured against default

Question 13 (2 points)

With mortgage insurance, partial coverage and co-insurance are used synonymously and provide the same degree of coverage.

Question 13 options:

	1) True
	2) False

Question 14 (2 points)

The FHA up-front mortgage insurance premium (MIP) is:

Question 14 options:

1)	refunded if the loan is subsequently assumed

2)	equal to five percent of the face amount of the loan

3)	can be financed under some conditions

4)	none of the above

Question 15 (2 points)

Borrower qualification considers all of the following except:

Question 15 options:

1)	type of income

2)	stability of income

3)	living expenses

4)	location of the borrower