217. If each of the following loans would otherwise normally require compliance with the Federal Truth-in-Lending Act, which one would be exempt on the basis of the type of loan itself: A.An agricultural loan by a bank; B.A $10,000 signature loan from a consumer finance company; C.A VA loan from a federally-chartered savings and loan association; D.A $15,000 loan from a credit union for home improvement.

217. If each of the following loans would otherwise normally require compliance with the Federal Truth-in-Lending Act, which one would be exempt on the basis of the type of loan itself: A.An agricultural loan by a bank; B.A $10,000 signature loan from a consumer finance company; C.A VA loan from a federally-chartered savings and loan association; D.A $15,000 loan from a credit union for home improvement. Truth-in-Lending – Not Agricultural

210. The purpose of the Truth-in-Lending Act is to: A.Regulate usurious charges for credit; B.Establish a maximum annual percentage rate; C.Assure a meaningful disclosure of credit terms; D.Limit the cost of credit to the consumer.

210. The purpose of the Truth-in-Lending Act is to: A.Regulate usurious charges for credit; B.Establish a maximum annual percentage rate; C.Assure a meaningful disclosure of credit terms; D.Limit the cost of credit to the consumer. Truth-in-Lending – Purpose – Meaningful disclosure by lender

737. According to the Truth-in-Lending Act, consumers must be informed of credit terms by: A.The trustee; B.The broker; C.The lender; D.The escrow company.

737. According to the Truth-in-Lending Act, consumers must be informed of credit terms by: A.The trustee; B.The broker; C.The lender; D.The escrow company. (Truth-in-Lending) Purpose – Meaningful disclosure by lender

211. Under the Federal Truth-in-Lending Law, the cost of credit on certain loans is expressed as: A.A maximum percentage rate; B.An annual percentage rate; C.A minimum percentage rate; D.A monthly percentage rate.

211. Under the Federal Truth-in-Lending Law, the cost of credit on certain loans is expressed as: A.A maximum percentage rate; B.An annual percentage rate; C.A minimum percentage rate; D.A monthly percentage rate. Annual percentage rate – Cost of credit

729. If an advertisement is placed in a newspaper advertising a house for sale, and only the annual percentage rate is stated: A.Total finance charges must be included; B.Number of payments must be included; C.The amount of the down payment must be included; D.Additional disclosures are not required.

729. If an advertisement is placed in a newspaper advertising a house for sale, and only the annual percentage rate is stated: A.Total finance charges must be included; B.Number of payments must be included; C.The amount of the down payment must be included; D.Additional disclosures are not required. Advertising – only APR is used – Other disclosures not required

848. The federal right to cancel notice must be given to a borrower by the agent if: A.A commercial building is being used for the security for the loan; B.The loan is not secured by the borrower's dwelling and more than $25,000 is being borrowed; C.The borrower's residence is the security for the loan; D.The money will be used for a business expansion.

848. The federal right to cancel notice must be given to a borrower by the agent if: A.A commercial building is being used for the security for the loan; B.The loan is not secured by the borrower's dwelling and more than $25,000 is being borrowed; C.The borrower's residence is the security for the loan; D.The money will be used for a business expansion. Right to cancel – Residence

612. Under a conditional installment sales contract for the sale of real property, legal title is held by the: A.Trustee; B.Beneficiary; C.Vendee; D.Vendor.

612. Under a conditional installment sales contract for the sale of real property, legal title is held by the: A.Trustee; B.Beneficiary; C.Vendee; D.Vendor. Conditional Installment Sales Contract Legal Title – Vendor

208. Some people have described a land contract of sale as a method of financing which is used in place of a deed and a deed of trust. Therefore, a land contract of sale is said to be: A.Identical to a mortgage; B.A security device; C.Similar to an option; D.A three-party instrument.

208. Some people have described a land contract of sale as a method of financing which is used in place of a deed and a deed of trust. Therefore, a land contract of sale is said to be: A.Identical to a mortgage; B.A security device; C.Similar to an option; D.A three-party instrument. Conditional Installment Sales Contract – Security Device

209. The real estate financing instrument which transfers equitable title to real property, but retains legal title in the seller, is called: A.A security agreement; B.A mortgage; C.A real property conditional installment sales contract; D.A trust deed.

209. The real estate financing instrument which transfers equitable title to real property, but retains legal title in the seller, is called: A.A security agreement; B.A mortgage; C.A real property conditional installment sales contract; D.A trust deed. Conditional Installment Sales Contract – Transfers equitable title

765. Both buyer and seller have signed a real property conditional sales contract, the effect of which would be: A.All right and interest of the seller now passes to the buyer; B.An equitable title passes to the buyer; C.The legal title passes to the buyer; D.No title to the real estate passes.

765. Both buyer and seller have signed a real property conditional sales contract, the effect of which would be: A.All right and interest of the seller now passes to the buyer; B.An equitable title passes to the buyer; C.The legal title passes to the buyer; D.No title to the real estate passes. Conditional Installment Sales Contract – Transfers equitable title

766. A buyer defaulted on a real property installment sales contract that had been recorded by the seller. If a quitclaim deed were to be used to extinguish the cloud on the title, it must be executed by: A.Both buyer and seller; B.Seller only; C.Buyer only; D.None of the above.

766. A buyer defaulted on a real property installment sales contract that had been recorded by the seller. If a quitclaim deed were to be used to extinguish the cloud on the title, it must be executed by: A.Both buyer and seller; B.Seller only; C.Buyer only; D.None of the above. Default, Quitclaim Deed – Signed by buyer

732. A mortgage loan may be insured by: A.VA; B.FHA or a private mortgage insurer; C.FNMA; D.The beneficiary.

732. A mortgage loan may be insured by: A.VA; B.FHA or a private mortgage insurer; C.FNMA; D.The beneficiary. Loan Insured by – FHA or private insurer

224. The Federal Housing Administration (FHA) was primarily created to provide: A.A market for home mortgages; B.Insurance for bank depositors; C.A flow of money and credit; D.Insurance for home loans made by approved lenders.

224. The Federal Housing Administration (FHA) was primarily created to provide: A.A market for home mortgages; B.Insurance for bank depositors; C.A flow of money and credit; D.Insurance for home loans made by approved lenders. FHA – Protects (approved) lenders against default

564. Which of the following loans on a home would probably be made without requiring a down payment from the borrower: A.VA loan; B.Cal-Vet loan; C.FHA loan; D.Conventional loan.

564. Which of the following loans on a home would probably be made without requiring a down payment from the borrower: A.VA loan; B.Cal-Vet loan; C.FHA loan; D.Conventional loan. VA Loan – No down payment

886. Which of the following loans would be most likely to qualify for FHA insurance, but not for a VA loan guarantee: A.A loan to purchase 1-4 units of residential rental property; B.A loan to purchase a farm; C.A loan to buy farm equipment; D.A loan to buy a small business.

886. Which of the following loans would be most likely to qualify for FHA insurance, but not for a VA loan guarantee: A.A loan to purchase 1-4 units of residential rental property; B.A loan to purchase a farm; C.A loan to buy farm equipment; D.A loan to buy a small business. VA loan – cannot be rental property

682. When a home is financed under the state of California Veterans Farm and Home Purchase Plan, which of the following documents is used: A.A mortgage; B.A deed of trust; C.A bill of sale; D.A real property purchase contract.

682. When a home is financed under the state of California Veterans Farm and Home Purchase Plan, which of the following documents is used: A.A mortgage; B.A deed of trust; C.A bill of sale; D.A real property purchase contract. Cal-Vet – Land contract

858. When property is being purchased under the California Veterans Farm and Home Purchase Plan, legal title is held by the: A.Veteran; B.Trustee; C.Veterans Administration; D.Department of Veterans Affairs.

858. When property is being purchased under the California Veterans Farm and Home Purchase Plan, legal title is held by the: A.Veteran; B.Trustee; C.Veterans Administration; D.Department of Veterans Affairs. Cal-Vet – Department of Veterans Affairs

827. An agreement wherein one party agrees to reimburse the other party for damages suffered in the event of a clearly defined risk, in exchange for payment of monetary consideration, is commonly known as: A.A fidelity bond; B.A lease agreement; C.An insurance policy; D.A management agreement.

827. An agreement wherein one party agrees to reimburse the other party for damages suffered in the event of a clearly defined risk, in exchange for payment of monetary consideration, is commonly known as: A.A fidelity bond; B.A lease agreement; C.An insurance policy; D.A management agreement. Insurance – Promise of reimbursement for damages

245. If the owner of real property carries proper fire insurance coverage, that insurance policy will protect the owner in the event of loss. In such a case, the insured: A.Might gain, but definitely will not lose money; B.Should neither gain nor lose; C.Might lose, but certainly will not gain; D.None of the above.

245. If the owner of real property carries proper fire insurance coverage, that insurance policy will protect the owner in the event of loss. In such a case, the insured: A.Might gain, but definitely will not lose money; B.Should neither gain nor lose; C.Might lose, but certainly will not gain; D.None of the above. Fire insurance – should neither gain nor lose

End of session