Real Estate 101 - Finance Final Prac ce Ques ons and
answers Newest RATED A+ 2025/2026 NEW EDITION
100% VERIFIED CORRECT
What is one of the primary purposes of the secondary mortgage market?
a) Issue second mortgages.
b) Lend money to banks.
c) Pay off defaulted loans.
d) Cycle back money to primary lenders. - Ans Cycle back money to primary lenders.
What are the two major differences between freehold estates and leasehold estates? - Ans
Freehold estates last for an indefinite period of %me, while leasehold estates expire on a
definite date.
A freehold estate denotes property ownership by the estate holder, while a leasehold estate
involves the right to possess and use property that is owned by someone else.
Which type of leasehold estate has a definite beginning and ending date? - Ans Estate for Years
What are the three common ways to get %tle assurance? - Ans Deed
Abstract and opinion
Title insurance
Title insurance policies protect policy holders from what kinds of losses? - Ans Forged
documents, such as deeds or mortgages
Undisclosed heirs
Mistaken legal interpreta%on of a will
,Misfiled documents
Confusion arising from similarity of names
Incorrectly stated marital status
Mental incompetence
When does supply and demand usually improve for a buyer? - Ans When the economy is in
recession
What determines how healthy the real estate market is at any given point in %me? - Ans How
healthy the real estate market is at any given point in %me relates directly to the cost of money
or interest rates.
Why are the savings of individuals important to the economy? - Ans Savings become the
eventual source of funds for borrowing.
When a tenant wrongfully remains without the landlord's consent a2er the expira%on of the
lease what is the best descrip%on of the situa%on? - Ans Estate at sufferance
The Texas agency that ensures that the banks, savings ins%tu%ons, consumer credit grantors,
and other regulated en%%es chartered or licensed under state law operate as sound and
responsible ins%tu%ons is called: - Ans Finance Commission of Texas
Which Board is responsible to license, cer%fy, and regulate real estate appraisers in Texas under
state and federal laws? - Ans Texas Appraiser Licensing and Cer%fica%on Board (TALCB)
FHLB stands for - Ans Federal Home Loan Bank System
OCC stands for - Ans Office of the Comptroller of the Currency
, Banks are required to keep a certain amount of money in reserve. If their reserves are ge9ng
low, they may borrow money from - Ans The Federal Reserve
Which of the following groups of people would be eligible for the Homes for Texas Heroes
program? - Ans Public Security Officers
In 1988, two categories of protected classes were added to those protected classes already
covered under the Fair Housing Act for a total of seven federally-protected classes. Which of the
following classes were added? - Ans Familial Status and Handicapped
What Act, in 1974, added sex to the list of prohibited discrimina%ons under the Fair Housing
Act? - Ans Housing and Community Development Act
The Federal Farm Loan Act of 1916 allows Farm Loan Associa%on members to borrow ____ of
the value of their land and ___ of the value of improvements. - Ans 50%; 20%
What is ECOA? - Ans A law prohibi%ng lending discrimina%on
How many Farm Loan Banks were established by the Federal Farm Loan Act of 1916? - Ans 12
What Act, in 1974, added sex to the list of prohibited discrimina%ons under the Fair Housing
Act? - Ans Housing and Community Development Act
What is the range for FICO scores? - Ans 300-900
What is the minimum pool size for manufactured homes under Ginnie Mae II MBS? - Ans
$350,000
answers Newest RATED A+ 2025/2026 NEW EDITION
100% VERIFIED CORRECT
What is one of the primary purposes of the secondary mortgage market?
a) Issue second mortgages.
b) Lend money to banks.
c) Pay off defaulted loans.
d) Cycle back money to primary lenders. - Ans Cycle back money to primary lenders.
What are the two major differences between freehold estates and leasehold estates? - Ans
Freehold estates last for an indefinite period of %me, while leasehold estates expire on a
definite date.
A freehold estate denotes property ownership by the estate holder, while a leasehold estate
involves the right to possess and use property that is owned by someone else.
Which type of leasehold estate has a definite beginning and ending date? - Ans Estate for Years
What are the three common ways to get %tle assurance? - Ans Deed
Abstract and opinion
Title insurance
Title insurance policies protect policy holders from what kinds of losses? - Ans Forged
documents, such as deeds or mortgages
Undisclosed heirs
Mistaken legal interpreta%on of a will
,Misfiled documents
Confusion arising from similarity of names
Incorrectly stated marital status
Mental incompetence
When does supply and demand usually improve for a buyer? - Ans When the economy is in
recession
What determines how healthy the real estate market is at any given point in %me? - Ans How
healthy the real estate market is at any given point in %me relates directly to the cost of money
or interest rates.
Why are the savings of individuals important to the economy? - Ans Savings become the
eventual source of funds for borrowing.
When a tenant wrongfully remains without the landlord's consent a2er the expira%on of the
lease what is the best descrip%on of the situa%on? - Ans Estate at sufferance
The Texas agency that ensures that the banks, savings ins%tu%ons, consumer credit grantors,
and other regulated en%%es chartered or licensed under state law operate as sound and
responsible ins%tu%ons is called: - Ans Finance Commission of Texas
Which Board is responsible to license, cer%fy, and regulate real estate appraisers in Texas under
state and federal laws? - Ans Texas Appraiser Licensing and Cer%fica%on Board (TALCB)
FHLB stands for - Ans Federal Home Loan Bank System
OCC stands for - Ans Office of the Comptroller of the Currency
, Banks are required to keep a certain amount of money in reserve. If their reserves are ge9ng
low, they may borrow money from - Ans The Federal Reserve
Which of the following groups of people would be eligible for the Homes for Texas Heroes
program? - Ans Public Security Officers
In 1988, two categories of protected classes were added to those protected classes already
covered under the Fair Housing Act for a total of seven federally-protected classes. Which of the
following classes were added? - Ans Familial Status and Handicapped
What Act, in 1974, added sex to the list of prohibited discrimina%ons under the Fair Housing
Act? - Ans Housing and Community Development Act
The Federal Farm Loan Act of 1916 allows Farm Loan Associa%on members to borrow ____ of
the value of their land and ___ of the value of improvements. - Ans 50%; 20%
What is ECOA? - Ans A law prohibi%ng lending discrimina%on
How many Farm Loan Banks were established by the Federal Farm Loan Act of 1916? - Ans 12
What Act, in 1974, added sex to the list of prohibited discrimina%ons under the Fair Housing
Act? - Ans Housing and Community Development Act
What is the range for FICO scores? - Ans 300-900
What is the minimum pool size for manufactured homes under Ginnie Mae II MBS? - Ans
$350,000
