Practice of Property Management- Real Estate
Council of Alberta Exam Questions and Answers 2025
Which of the following provisions in a mortgage allows the lender to demand immediate
payment of the entire outstanding loan balance if the borrower defaults? -
✔✔ANSW✔✔..Acceleration Clause
Which of the following statements regarding private mortgage insurance is true? -
✔✔ANSW✔✔..Under certain conditions, the lender is required to cancel the PMI
whether or not the borrower request cancelation
Seller financing is most likely to be used - ✔✔ANSW✔✔..When market interest rates
are high
The term piggyback loan refers to - ✔✔ANSW✔✔..Secondary financing
Under the equal credit opportunity act, lenders are not allowed to -
✔✔ANSW✔✔..Discriminate based on age or marital status
The Lawrence's bought a home with Ava loan in 1993, and the guarantee amount was
$46000. Now they're selling the property to a non veteran who plans to assume the
loan. Which of the following is true? - ✔✔ANSW✔✔..The Lawrence's have some
remaining entitlement, but their full entitlement can not be restored until they're old loan
has been paid off
An advertisement that offers home purchase loans with only 1% down -
✔✔ANSW✔✔..Violates the truth in lending act unless had also States the APR and
other repayment terms
Which of these does Fannie Mae considered to be one of the 2 primary risk factors that
determine the level of review that should be applied to the rest of the loan application? -
✔✔ANSW✔✔..Credit score
For federally related loans, a key provision of the real estate settlement procedures act -
✔✔ANSW✔✔..Prevents lenders from paying referral fees to real estate agents for
referring customers
Use of gift funds in a transaction requires a - ✔✔ANSW✔✔..Gift letter from the donor
Which of these does not change during the term of an adjustable rate mortgage -
✔✔ANSW✔✔..The lenders margin
, In connection with most mortgage loan applications common lenders must provide a
good faith estimate of - ✔✔ANSW✔✔..The borrower's closing costs
With wrap-around financing - ✔✔ANSW✔✔..The seller continues to make the payments
on the underlying loan
All of the following are considered predatory lending practices, except. -
✔✔ANSW✔✔..Charging a prepayment penalty
Jerry feral is buying a single family home she can finance the purchase with an FHA
loan only if - ✔✔ANSW✔✔..She intends to occupy the property as her principal
residence
The Duncan's bought their new home a few years ago but they conventional loan. Now
they are selling the property to a buyer who wants to assume the loan. The lender could
- ✔✔ANSW✔✔..Any of the above
In a deed of trust, the lender is referred to as the - ✔✔ANSW✔✔..Beneficiary
Charging mortgage borrowers higher or lower interest rates depending on whether they
are good credit risks or poor credit risks is called - ✔✔ANSW✔✔..Risk based pricing
Which of the following would an appraiser be most likely to Use as a comparison sell for
a sales comparison appraisal with any necessary adjustments? - ✔✔ANSW✔✔..A
home quite similar to the subject property, located in a similar neighborhood nearby,
which sold 3 months ago
The Richardson stable monthly income is $6000 they're recurring liabilities come to
$700 per month. If they want to qualify for a 90% conventional loan, there perposed
monthly housing expense PITI probably should not exceed - ✔✔ANSW✔✔..$1460
Reverse mortgages - ✔✔ANSW✔✔..Enable some elderly homeowners to keep Their
homes
All of the following could hurt an individual's credit score except -
✔✔ANSW✔✔..Requesting corrections to their credit score
Secondary financing from someone other than a family member is permitted in
conjunction with an FHA loan if - ✔✔ANSW✔✔..The to loans combined do not exceed
the maximum loan to value ratio for the transaction
Under the community reinvestment act, depository institutions - ✔✔ANSW✔✔..Must
report the number of mortgage loans issued to low and middle income borrowers
Council of Alberta Exam Questions and Answers 2025
Which of the following provisions in a mortgage allows the lender to demand immediate
payment of the entire outstanding loan balance if the borrower defaults? -
✔✔ANSW✔✔..Acceleration Clause
Which of the following statements regarding private mortgage insurance is true? -
✔✔ANSW✔✔..Under certain conditions, the lender is required to cancel the PMI
whether or not the borrower request cancelation
Seller financing is most likely to be used - ✔✔ANSW✔✔..When market interest rates
are high
The term piggyback loan refers to - ✔✔ANSW✔✔..Secondary financing
Under the equal credit opportunity act, lenders are not allowed to -
✔✔ANSW✔✔..Discriminate based on age or marital status
The Lawrence's bought a home with Ava loan in 1993, and the guarantee amount was
$46000. Now they're selling the property to a non veteran who plans to assume the
loan. Which of the following is true? - ✔✔ANSW✔✔..The Lawrence's have some
remaining entitlement, but their full entitlement can not be restored until they're old loan
has been paid off
An advertisement that offers home purchase loans with only 1% down -
✔✔ANSW✔✔..Violates the truth in lending act unless had also States the APR and
other repayment terms
Which of these does Fannie Mae considered to be one of the 2 primary risk factors that
determine the level of review that should be applied to the rest of the loan application? -
✔✔ANSW✔✔..Credit score
For federally related loans, a key provision of the real estate settlement procedures act -
✔✔ANSW✔✔..Prevents lenders from paying referral fees to real estate agents for
referring customers
Use of gift funds in a transaction requires a - ✔✔ANSW✔✔..Gift letter from the donor
Which of these does not change during the term of an adjustable rate mortgage -
✔✔ANSW✔✔..The lenders margin
, In connection with most mortgage loan applications common lenders must provide a
good faith estimate of - ✔✔ANSW✔✔..The borrower's closing costs
With wrap-around financing - ✔✔ANSW✔✔..The seller continues to make the payments
on the underlying loan
All of the following are considered predatory lending practices, except. -
✔✔ANSW✔✔..Charging a prepayment penalty
Jerry feral is buying a single family home she can finance the purchase with an FHA
loan only if - ✔✔ANSW✔✔..She intends to occupy the property as her principal
residence
The Duncan's bought their new home a few years ago but they conventional loan. Now
they are selling the property to a buyer who wants to assume the loan. The lender could
- ✔✔ANSW✔✔..Any of the above
In a deed of trust, the lender is referred to as the - ✔✔ANSW✔✔..Beneficiary
Charging mortgage borrowers higher or lower interest rates depending on whether they
are good credit risks or poor credit risks is called - ✔✔ANSW✔✔..Risk based pricing
Which of the following would an appraiser be most likely to Use as a comparison sell for
a sales comparison appraisal with any necessary adjustments? - ✔✔ANSW✔✔..A
home quite similar to the subject property, located in a similar neighborhood nearby,
which sold 3 months ago
The Richardson stable monthly income is $6000 they're recurring liabilities come to
$700 per month. If they want to qualify for a 90% conventional loan, there perposed
monthly housing expense PITI probably should not exceed - ✔✔ANSW✔✔..$1460
Reverse mortgages - ✔✔ANSW✔✔..Enable some elderly homeowners to keep Their
homes
All of the following could hurt an individual's credit score except -
✔✔ANSW✔✔..Requesting corrections to their credit score
Secondary financing from someone other than a family member is permitted in
conjunction with an FHA loan if - ✔✔ANSW✔✔..The to loans combined do not exceed
the maximum loan to value ratio for the transaction
Under the community reinvestment act, depository institutions - ✔✔ANSW✔✔..Must
report the number of mortgage loans issued to low and middle income borrowers
