RELE 1219 Final UPDATED Exam
Questions and CORRECT Answers
One of the best ways to assure a good title to property that is being transferred to another is to
- Correct Answer- Purchase an owners title insurance policy
The underlying purpose of the real estate settlement procedures act is to - Correct Answer-
Require adequate disclosure of settlement costs and requirements to a loan
applicant/borrower
The new closing disclosure also has a section that discloses key loan terms this includes each
of the following except - Correct Answer- The final loan-to-value ratio
(T/F): The annual percentage rate (APR) as required to be disclosed in a truth-in-lending
statement is the interest rate. - Correct Answer- False
The real estate settlement procedures act prohibits or places limits on all of the following
except - Correct Answer- The amount paid for a loan origination fee
Which of the following loan types are allowed under the truth-in-lending act do you have a
right to rescind? - Correct Answer- Owner occupied refinance
The major source of mortgage money began to shift away from savings deposits more
towards - Correct Answer- Money raised in the financial markets through the sale of various
mortgage-backed securities
Which of the following best describes the meaning of mortgage loan collateral? - Correct
Answer- A pledge of land as security for a debt
In mortgage lending, the word hypothecate means - Correct Answer- The borrower remains
in possession of the property while it is pledged as collateral for a loan
Shares of common stock in a corporation represent which of the following? - Correct
Answer- The ownership interest in the corporation
, In a sale of a mortgage note, if the discount is increased, the price of the note is - Correct
Answer- Decreased
The way rights to real property or owning conveyed is determined primarily by - Correct
Answer- The laws of each state
A unit of measure amounting to 1% of the loan amount is identified as a - Correct Answer-
Point
The premium cost of a HUD/FHA insured commitment is paid for by the - Correct Answer-
Home buyer/borrower
(T/F): no regulations issued by the federal security and exchange commission apply to real
estate transactions - Correct Answer- False
The type of loan pricing that rates the probability of default with corresponding price
adjustments is called: - Correct Answer- Risk based pricing
(T/F): One of the major unresolved problems resulting from the confusion of environmental
laws and regulations is to define the proper rights of a landowner who loses partial usage of
the land but retains good title to the property. - Correct Answer- True
If a hazardous waste area is detected, responsibility for his clean-up falls on which of the
following? - Correct Answer- All parties involved with the property have full responsibility
Commercial real estate financing generally requires at least two professional assessments in
appraisal and which of the following: - Correct Answer- An environmental site assessment
For the secondary market to consider purchase of a commercial loan, all of the following
conditions must be met EXCEPT: - Correct Answer- Full insurance coverage against
environmental loss
The purpose of a phase 1 site assessment as defined by CERCLA is to: - Correct Answer-
Provide a possible defense for an innocent landowner against future liabilities for toxic waste
cleanup
Questions and CORRECT Answers
One of the best ways to assure a good title to property that is being transferred to another is to
- Correct Answer- Purchase an owners title insurance policy
The underlying purpose of the real estate settlement procedures act is to - Correct Answer-
Require adequate disclosure of settlement costs and requirements to a loan
applicant/borrower
The new closing disclosure also has a section that discloses key loan terms this includes each
of the following except - Correct Answer- The final loan-to-value ratio
(T/F): The annual percentage rate (APR) as required to be disclosed in a truth-in-lending
statement is the interest rate. - Correct Answer- False
The real estate settlement procedures act prohibits or places limits on all of the following
except - Correct Answer- The amount paid for a loan origination fee
Which of the following loan types are allowed under the truth-in-lending act do you have a
right to rescind? - Correct Answer- Owner occupied refinance
The major source of mortgage money began to shift away from savings deposits more
towards - Correct Answer- Money raised in the financial markets through the sale of various
mortgage-backed securities
Which of the following best describes the meaning of mortgage loan collateral? - Correct
Answer- A pledge of land as security for a debt
In mortgage lending, the word hypothecate means - Correct Answer- The borrower remains
in possession of the property while it is pledged as collateral for a loan
Shares of common stock in a corporation represent which of the following? - Correct
Answer- The ownership interest in the corporation
, In a sale of a mortgage note, if the discount is increased, the price of the note is - Correct
Answer- Decreased
The way rights to real property or owning conveyed is determined primarily by - Correct
Answer- The laws of each state
A unit of measure amounting to 1% of the loan amount is identified as a - Correct Answer-
Point
The premium cost of a HUD/FHA insured commitment is paid for by the - Correct Answer-
Home buyer/borrower
(T/F): no regulations issued by the federal security and exchange commission apply to real
estate transactions - Correct Answer- False
The type of loan pricing that rates the probability of default with corresponding price
adjustments is called: - Correct Answer- Risk based pricing
(T/F): One of the major unresolved problems resulting from the confusion of environmental
laws and regulations is to define the proper rights of a landowner who loses partial usage of
the land but retains good title to the property. - Correct Answer- True
If a hazardous waste area is detected, responsibility for his clean-up falls on which of the
following? - Correct Answer- All parties involved with the property have full responsibility
Commercial real estate financing generally requires at least two professional assessments in
appraisal and which of the following: - Correct Answer- An environmental site assessment
For the secondary market to consider purchase of a commercial loan, all of the following
conditions must be met EXCEPT: - Correct Answer- Full insurance coverage against
environmental loss
The purpose of a phase 1 site assessment as defined by CERCLA is to: - Correct Answer-
Provide a possible defense for an innocent landowner against future liabilities for toxic waste
cleanup
