TEXAS PRINCIPLES OF REAL ESTATE II FINAL -

TEXAS PRINCIPLES OF REAL ESTATE II FINAL -

EXAM 250 QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |AGRADE||BRAND NEW!!

The legal procedure under which property may be sold to satisfy an unpaid promissory note.

• Primary mortgage market
• Redlining
• Underwriting
• Foreclosure
• Origination - ANSWER- D

The market in which borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction is called the primary mortgage market.

• True
• False - ANSWER- A

The person who evaluates a borrower's loan application and examines a borrower's

credit worthiness for the risk of repayment to the lender is called a/an:

• Mortgage Broker
• Mortgage Banker
• Underwriter
• Agent - ANSWER- C

The Consumer Financial Protection Bureau enforces:

• The Real Estate Settlement Procedures Act

• The Fair Credit Reporting Act
• The Truth In Lending Act
• All of the above - ANSWER- D

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of:

• Race
• Religion
• Sex
• All of the above - ANSWER- D

The government purchases existing mortgages from the primary mortgage market for the secondary market.

• True
• False - ANSWER- A

All of the following are true about Fannie Mae, EXCEPT:

• It plays a vital role in financing and increasing home ownership opportunities in

the U.S.

• It operates exclusively in the secondary market
• It used to be called The Federal Home Loan Mortgage Corporation
• It standardizes mortgage loans, thereby attracting investors who traditionally

have not invested in the primary market - ANSWER- C

The Loan Estimate does not allow for any charges to increase at closing.

• True

• False - ANSWER- B

The right of the government to take an individual's land if he or she dies without a will or heirs.

• Police power
• Ad valorem
• Taxation
• Escheat
• Condemnation - ANSWER- D

The government's right to tax real estate.

• Police power b. Ad valorem c. Taxation d. Escheat
• Condemnation - ANSWER- C

The right of the government to regulate and control the way that an individual uses his or her land.

• Police power
• Ad valorem
• Taxation
• Escheat
• Condemnation - ANSWER- A

The action of government seizure of land for the good of the public.

• Police power
• Ad valorem

• Taxation
• Escheat
• Condemnation - ANSWER- E

According to value

• Police power
• Ad valorem
• Taxation
• Escheat
• Condemnation - ANSWER- B

The approach used as the best indicator of value for existing properties.

• functional obsolescence
• sales comparison
• highest and best use
• market value
• external obsolescence

B

Refers to the loss in desirability of the style, layout, or function of an element of a property over time.

• functional obsolescence
• sales comparison
• highest and best use
• market value
• external obsolescence

A

The price a willing seller will sell for, and the price a willing buyer will pay.

• functional obsolescence
• sales comparison