Real Estate Broker Exam — National Portion
Financing and settlement: practice questions
Our Real Estate Broker (National) bank has 33 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.
Question 1
A defeasance clause requires the lender to:
- Foreclose on default
- Release the lien at payoff
- Raise the rate at reset
- Assign the loan
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B. Release the lien at payoff — Defeasance defeats the lender's interest upon full repayment, usually by a release or satisfaction.
Question 2
A title company pays a real estate agent $100 for each buyer the agent refers. Under RESPA this is:
- Legal if disclosed to the buyer in writing
- An illegal kickback for referrals
- Legal if under $500
- Required by TRID
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B. An illegal kickback for referrals — RESPA Section 8 (12 CFR 1024.14) bans fees for referrals of settlement service business.
Question 3
A loan that includes personal property such as appliances along with the real estate is a:
- Budget mortgage
- Blanket mortgage
- Package mortgage
- Bridge loan
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C. Package mortgage — Package mortgages finance real and personal property together.
Question 4
USDA Rural Development loan programs are aimed at:
- Eligible buyers in rural areas
- Commercial investors in cities
- Veterans only
- Jumbo loan borrowers
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A. Eligible buyers in rural areas — The outline lists USDA loan requirements and rural development financing.
Question 5
Which loan is generally assumable with qualification?
- A loan with an alienation clause enforced by the lender
- An FHA-insured loan
- A HELOC
- Most conventional loans with due-on-sale clauses
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B. An FHA-insured loan — FHA and VA loans can generally be assumed by qualified buyers; most conventional loans contain due-on-sale clauses.