217. if each of the following loans would otherwise normally require compliance with the federal...
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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 ContractLegal Title – Vendor
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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732. A mortgage loan may be insured by:
A. VA;
B. FHA or a private mortgage insurer;
C. FNMA;
D. The beneficiary.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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
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End of session