1. The percentage of the appraised value that the lender will loan the borrower to purchase a property is called:

A. GDP                                              C. collateral percentage
B. Ioan-to-value ratio (LTV)              D. equity ratio

2. The greatest source of shopping center financing is:

A. banks          C. Iife insurance companies
B. savings banks              D. mortgage bankers

3. How much time, after the buyer signs the loan application, does the lender have to provide a good faith estimate of closing costs (RESPA requirement)?

A. 3 hours                                 C. 2 business days
B. 1 business day                        D. 3 business days

4. The measure of the total value of production (goods an services) in the U.S. is called the:

A. VOP                         C. APB
B. GDP                         D. FED

5. Which of the following is considered an institutional lender?

A. Bank                               C. Mortgage company
B. Private individual                 D. Credit union

6. In addition to a broker’s license, what type of endorsement must a broker have to sell promissory notes or sales contracts?

A. Real Property Securities Dealer (RSPD)        C. Real Estate Investment Trust (REIT)
B. Fannie Mae (FNMA)                                     D. All of the above

7. Of the following government backed loans, which is insured?

A. FHA                   C. CAL-VET
B. VA                       D. None of the above

8. The term that best describes a construction loan is a(n):

A. permanent loan                 C. purchase loan
B. interim loan                     D. bad risk loan

9. If the economy experiences an increase in inflation, who is protected by the increased equity?

A. The lender                       C. The trustor
B. The trustee                       D. Both A and C

10. What term refers to the amount left after deducting what is owed on a property from the market value of the property?

A. Soft money         C. Loan-to-value
B. Equity D. Collateral

11. In addition to the FHA, a mortgage loan may be insured by:

A. a private mortgage insurer (PMI)                 C. VA
B. GNMA                                                         D. all of the above

12. Which of the following is not considered a “demand area” for borrowing money?

A. New construction                      C. Demolition
B. Purchases                                  D. Refinancing

13. FHA and VA requirements that are often more restrictive than the building codes are called:

A. PMls C. RElTs
B. MPRs D. MMIPs

14. FHA backed loans are protected by:

A. Mortgage Insurance Premiums (MIPs)                 C. FDICs
B. MPRs                                                                     D. none of the above

15. Which of the following requires NO cash down payment?

A. FHA                         C. VA
B. CAL-VET                  D. CHFA

16. A property, to be purchased by a veteran, must have what type of appraisal?

A. DMV                     C. FHA
B. CRV                     D. None of the above

17. Banks in California are insured by the:

A. FSLIC                 C. FHLMC
B. FDIC                     D. CAL-VET

18. When it comes to loans, lenders in the secondary market are concerned with:

A. interest rates and payments             C. appearance and value
B. liquidity and marketability                 D. long term investment and stability

19. A buyer’s market becomes a seller’s market when:

A. prices rise                     C. prices stay the same
B. prices decrease              D. interest rates fall

20. The lower the loan-to-value ratio, the greater the:

A. interest                     C. loan
B. down payment          D. term