2020 Appraiser’s Exam

Mock Exam Set G

1. Personal property that is often included with real estate is called

a. Fee estate
b. Chattel
c. Serf’s
d. Spawn
2. A fiduciary is
a. A person who is a lawyer
b. A person who lends money
c. A person who a relationship of financial trust
d. A person who invest in real estate
3. The highest form of property ownership
a. Life estate
b. Fee simple estate
c. Fiduciary estate
d. Mortgage estate
4. The first central bank in world was
a. Bank of united states
b. The federal reserve system
c. The national banking system
d. The bank of England
5. A central bank
a. Has the power of issue
b. Regulates the economy of the nation
c. Is a depository for a nations treasury
d. All of the above
6. Usury is defined as
a. A legal tender
b. An excessive market rate
c. A mortgage lien
d. None of the above
7. Fredatory loan practices include
a. Industry
b. Deration
c. Fraud
d. All of the above
8. When the demand for housing increases
a. It is a buyer’s market
b. Prices decrease
c. Prices increase
d. Prices remain in balance
9. Value is created and maintained by
a. Buyers
b. Political regulation
c. The secondary market
d. Balance
10. The study and description of the population of an area is called
a. Disintermediation
b. Demographics
c. Demand analysis
d. Population analysis
11. Pass through securities pay interest
a. Annually
b. Quarterly
c. Semi annually
d. Monthly
12. Disintermediation is
 a. A loss of savings deposits to higher paying investments
b. A gain of savings deposits by local lenders
c. Mortgage securities sales to investors by the secondary market
d. The sale of mortgages to the secondary market by primary lenders
13. The primary market
a. Is local
b. Makes mortgage loans
c. Accepts savings deposit
d. All of the above
14. Which of the following is a false statement regarding political regulation of the housing market
a. Regulations serve to protect consumers from deceptive practices
b. Regulations help keep housing prices low
c. Regulations may increase housing price
d. Regulations protect health and safety
15. The collection of principal and interest payments by one behalf of another is called
a. Loan seasoning
b. Loan participation
c. Loan portfolio
d. Loan servicing
16. A mortgage broker
a. Acts as a loan coordinator
b. Loans his/her own money
c. Service loans
d. All of the above
17. The practice of holding a loan for a specified period before it may sold into the secondary
market
a. Loan seasoning
b. Loan participation
c. Loan portfolio
d. Loan servicing
18. Requiring a percentage of a developers profit, as well as principle and interest is known
a. Loan seasoning
b. Loan participation
c. Loan portfolio
d. Loan servicing
19. Money market funds are
a. Privately insured
b. Insured by PDIC
c. Not insured
d. None of the above
20. Loans that are sold to secondary mortgage market are called
a. Seasoned loans
b. Participation loans
c. Portfolio loans
d. Serviced loans
21. An investment is said to be liquid when
a. It is guaranteed by the government
b. It can be readily sold
c. It is worthless
d. It is difficult to sell
22. Mortgage related securities are
a. Easily bought and sold
b. Have real estate mortgages as their collateral
c. Issued by participants in the secondary market
d. All of the above
23. When a borrowed prematurely stops making loan payments, the loan is said to be
a. Paid off
b. In suspense
c. In arrears d. In default
24. The process of tracking mortgages in good and comparing their rates to current market rates is
called
a. An investment rating
b. Market analysis
c. Pool analysis
d. Marking to market
25. A tranch is
a. Rating
b. Portion of multi-class security
c. Investment pool
d. None of the above
26. Redlining is
a. Refusal to loan in certain neighborhoods
b. Marking boundaries of census tracts
c. Not lending to bad credit consumers
d. Not lending on insufficient collateral
27. A good faith estimate is
a. Provided at the end of the loan process
b. Provided at the beginning of the loan process
c. An estimate of the annual percentage rate only
d. An estimate of the time it will take to complete the loan
28. It is legal to discriminate
a. By intent
b. By practice
c. By effect
d. All of the above
29. In a promissory note the borrower is called
a. Payee
b. Trustee
c. Trustor
d. Payee
30. A deed of conveyance is provided by the
a. Trustee
b. Beneficiary
c. Trustor
d. Payee
31. A deficiency judgment
a. Is part of the deed of reconveyance
b. Is exercised by the vendee
c. May only be granted by a court of law
32. Right of the borrower to redeem property after extra judicial foreclosure is called
a. Right of redemption
b. Equity of redemption
c. Dacion en pago
d. None of the above
33. Redemption in judicial foreclosure
a. Right of redemption
b. Equity of redemption
c. Statutory lien
d. Subordinate
34. A mortgage that is junior to another is called
a. Priority lien
b. Non-priority lien
c. Statutory lien
d. Subordinate
35. A foreclosure that does not have to be taken to court is called
a. Extra judicial
b. Judicial
c. Dacion en pago d. Reconveyance deed
36. A declaration of default is prepared by
a. Judge
b. Lender
c. Trustee
d. Borrower
37. A notice for sale
a. Requires a 30 day notice
b. In sent by the sheriff
c. Must be approved by a judge
d. Is published in a newspaper
38. An escrow gent
a. Fills out the loan application
b. Acts on the instructions of the parties to the loan
c. Determines the value of the property
d. Depository of titles
39. An appraiser
a. Provides an opinion of the value of the loan
b. Provides an opinion of the value of the borrower’s financial capability
c. Provides an opinion of the value of the property
d. None of the above
40. A loan origination fee
a. Is the commission paid to loan brokers
b. Paid to the lender for the privilege of processing to loan
c. A fee to cover administrative costs
d. Payable to the developer
41. In a loan with negative amortization, the balanced own
a. Decrease over time
b. Increase over time
c. Remains the same
d. Will never get paid
42. The greatest risk of default is caused generally by
a. Large down payments
b. Small or no down payment
c. Overpriced housing
d. High interest rates
43. A loan balance that grows rather than decreases due to unpaid interest being added back into
the loan is
a. A split term
b. Negative amortization
c. A margin
d. Positive amortization
44. Alternative financing plans are popular
a. During times of low interest rates
b. During times of high interest
c. With older borrowers
d. With younger borrowers
45. The process of qualifying both a borrower’s ability to pay and a property’s worth is called
a. Network assessment
b. Stabilization of income
c. Loan underwriting
d. Credit investigation
46. Determining economic obsolescence is part of the
a. Market approach
b. Income approach
c. Cost approach
d. All of the above
47. If a structural item can be readily repaired or replaced, it is said to be
a. Curable
b. Functionally obsolescence
 c. Incurable
d. Physically obsolescence
48. Appraisers are required to use
a. Listings
b. Closed sales
c. Pending sales
d. All the above
49. Which of the following is a major appraisal consideration?
a. Owner occupied
b. Contour of the land
c. Conforms to neighborhood
d. Design and appeal
50. A stated interest rate of 6% is an example of
a. Simple interest
b. An effective rate
c. Compound interest
d. A nominal rate
51. If a borrower is actually paying more than the stated rate due to a quarterly conversion, the rate
is an
a. Simple interest
b. A nominal rate
c. An effective rate
d. Proration
52. Interest paid on accrued interest as well as principal is known as
a. Compound
b. Prorated
c. Simple
d. All the above
53. Diverting pre-paid property expenses fairly between buyer and seller is known as
a. Discounting
b. Terms of sales
c. Proration
d. Compounding