FRESA - Florida Real Estate Sales Associate Exam

Question 21: A borrower in Naples negotiates loan terms providing that if she defaults the lender may look only to the property for repayment and may not pursue her personally for any shortfall. Which clause accomplishes that in the note?

Subordination clause

Defeasance clause

Prepayment clause

Exculpatory clause

Question 22: A buyer in Ocala takes over the seller's existing loan, and the lender formally agrees in writing to release the original borrower from all further liability on the note. What has occurred at the closing table in Ocala?

A transfer subject to the mortgage

An assumption with a novation

A subordination of the loan

A partial release of the lien

Question 23: A lender in Ocala must enforce its mortgage after a borrower stops paying, and its attorney explains how Florida requires that enforcement to proceed compared with states allowing sale without any court involvement. Which route must the lender take?

Through a judicial foreclosure action

Through a trustee's sale without a lawsuit

Through an administrative hearing at the department

Through an escrow disbursement order

Question 24: A homeowner in Cape Coral owes more on her mortgage than the home is worth, and her lender agrees to accept the sale proceeds as full satisfaction so she can sell to a willing buyer. What is that transaction called?

A deed in lieu of foreclosure

A wraparound refinance

A short sale

A judicial redemption

Question 25: A borrower in Ocala facing foreclosure agrees to convey the property directly to her lender, and the lender accepts it and cancels the debt rather than pursuing the case through the courts. What is that arrangement properly called?

A short sale of the property

A deed in lieu of foreclosure

An assumption of the mortgage

A subordination agreement

Question 26: A lender in Naples compares the amount of a proposed loan against the appraised value of the home securing it, using that relationship to judge risk and decide whether mortgage insurance will be required. Which measure is she using?

The debt service ratio

The capitalization rate

The loan-to-value ratio

The gross rent multiplier

Question 27: An underwriter in Ocala reviews a borrower's proposed housing payment against her gross monthly income, then reviews all of her monthly obligations against that same income. What are those two measures called in the language of mortgage underwriting?

Qualifying ratios

Amortization factors

Discount indices

Reserve requirements

Question 28: A builder in Ocala borrows money that is advanced in stages as the foundation, framing, and finish work are completed, with the balance repaid or converted once the finished house is sold. What kind of loan has the builder taken?

An open-end mortgage

A package mortgage

A blanket mortgage

A construction loan

Question 29: A buyer in Ocala obtains a loan carrying no government insurance and no government guaranty, resting entirely on the lender's own underwriting standards and the equity she brings to the purchase. Which kind of loan has she obtained?

A conventional loan

An insured loan

A guaranteed loan

A subsidized loan

Question 30: A licensee in Naples explains that two government programs protect lenders differently, one by insuring the lender against loss and the other by guaranteeing repayment of part of the loan for eligible borrowers. How do those two programs differ?

Both programs insure the entire loan balance

One insures, the other guarantees

Both programs guarantee the full balance

Neither program protects the lender at all

Question 31: A seller in Ocala is asked by a buyer's lender to confirm the exact balance, interest rate, and payment status of the loan the buyer plans to assume. Which document supplies that confirmation before the closing actually occurs?

An estoppel certificate

A satisfaction of mortgage

A subordination agreement

An affidavit of title

Question 32: A homeowner in Ocala borrows against the equity in her home while keeping her existing first mortgage in place, giving the new lender a lien that ranks behind the earlier recorded one. What is the new lender's mortgage called?

A blanket mortgage

A purchase money mortgage

A junior mortgage

A package mortgage

Question 33: A lender in Ocala sells one of its loans to an investor, and a document transfers the lender's rights under the mortgage to that investor while the borrower's terms and balance stay exactly the same. Which document accomplishes that?

A satisfaction of mortgage

A subordination agreement

A deed in lieu of foreclosure

An assignment of mortgage

Question 34: A buyer in Ocala purchases a furnished vacation condominium, and her lender takes a security interest in both the unit itself and the appliances, furniture, and window treatments that came with it. Which kind of mortgage has the lender taken?

A blanket mortgage

A package mortgage

An open-end mortgage

A wraparound mortgage

Question 35: A lender in Ocala explains that a second large government-sponsored enterprise, besides the one most consumers recognize, also purchases conventional loans in the secondary market and packages them for investors. Which enterprise is she describing to the buyer?

The Federal Housing Administration

The Government National Mortgage Association

The Federal Housing Finance Agency

The Federal Home Loan Mortgage Corporation

Question 36: A licensee in Ocala explains that the central bank buys and sells government securities on the open market, adding money to the banking system or draining it away. Which tool is that in the conduct of monetary policy?

Setting the reserve requirement

Open market operations

Adjusting the prime rate

Insuring bank deposits

Question 37: A borrower in Ocala reviews her loan estimate and finds a charge stated as a percentage of the loan amount, compensating the lender for taking the application, underwriting the file, and funding the loan. Which charge is she looking at?

A loan origination fee

A discount point payment

A mortgage insurance premium

A prepayment penalty

Question 38: A brokerage in Ocala advertises a listing and states a specific monthly payment amount in the advertisement, which triggers a federal requirement to disclose additional credit terms alongside that figure. Which federal law is imposing that advertising requirement?

The Real Estate Settlement Procedures Act

The Equal Credit Opportunity Act

The Fair Credit Reporting Act

The Truth in Lending Act

Question 39: An investor in Ocala buys a security representing an interest in a pool of home loans, receiving a share of the principal and interest that the underlying borrowers pay each month. What kind of security has she purchased?

A municipal revenue bond

A certificate of deposit

A mortgage-backed security

A commercial paper note

Question 40: A lender in Ocala must document that a borrower has a reasonable ability to repay before making a residential mortgage loan, a requirement adopted after the financial crisis and enforced federally. Which federal requirement is being described here?

The ability to repay requirement

The reserve requirement for banks

The redlining prohibition in lending

The escrow cushion limitation

FRESA Florida Real Estate Sales Associate Exam - Set 4 - Part 2

Question 21: A borrower in Naples negotiates loan terms providing that if she defaults the lender may look only to the property for repayment and may not pursue her personally for any shortfall. Which clause accomplishes that in the note?

Question 22: A buyer in Ocala takes over the seller's existing loan, and the lender formally agrees in writing to release the original borrower from all further liability on the note. What has occurred at the closing table in Ocala?

Question 23: A lender in Ocala must enforce its mortgage after a borrower stops paying, and its attorney explains how Florida requires that enforcement to proceed compared with states allowing sale without any court involvement. Which route must the lender take?

Question 24: A homeowner in Cape Coral owes more on her mortgage than the home is worth, and her lender agrees to accept the sale proceeds as full satisfaction so she can sell to a willing buyer. What is that transaction called?

Question 25: A borrower in Ocala facing foreclosure agrees to convey the property directly to her lender, and the lender accepts it and cancels the debt rather than pursuing the case through the courts. What is that arrangement properly called?

Question 26: A lender in Naples compares the amount of a proposed loan against the appraised value of the home securing it, using that relationship to judge risk and decide whether mortgage insurance will be required. Which measure is she using?

Question 27: An underwriter in Ocala reviews a borrower's proposed housing payment against her gross monthly income, then reviews all of her monthly obligations against that same income. What are those two measures called in the language of mortgage underwriting?

Question 28: A builder in Ocala borrows money that is advanced in stages as the foundation, framing, and finish work are completed, with the balance repaid or converted once the finished house is sold. What kind of loan has the builder taken?

Question 29: A buyer in Ocala obtains a loan carrying no government insurance and no government guaranty, resting entirely on the lender's own underwriting standards and the equity she brings to the purchase. Which kind of loan has she obtained?

Question 30: A licensee in Naples explains that two government programs protect lenders differently, one by insuring the lender against loss and the other by guaranteeing repayment of part of the loan for eligible borrowers. How do those two programs differ?

Question 31: A seller in Ocala is asked by a buyer's lender to confirm the exact balance, interest rate, and payment status of the loan the buyer plans to assume. Which document supplies that confirmation before the closing actually occurs?

Question 32: A homeowner in Ocala borrows against the equity in her home while keeping her existing first mortgage in place, giving the new lender a lien that ranks behind the earlier recorded one. What is the new lender's mortgage called?

Question 33: A lender in Ocala sells one of its loans to an investor, and a document transfers the lender's rights under the mortgage to that investor while the borrower's terms and balance stay exactly the same. Which document accomplishes that?

Question 34: A buyer in Ocala purchases a furnished vacation condominium, and her lender takes a security interest in both the unit itself and the appliances, furniture, and window treatments that came with it. Which kind of mortgage has the lender taken?

Question 35: A lender in Ocala explains that a second large government-sponsored enterprise, besides the one most consumers recognize, also purchases conventional loans in the secondary market and packages them for investors. Which enterprise is she describing to the buyer?

Question 36: A licensee in Ocala explains that the central bank buys and sells government securities on the open market, adding money to the banking system or draining it away. Which tool is that in the conduct of monetary policy?

Question 37: A borrower in Ocala reviews her loan estimate and finds a charge stated as a percentage of the loan amount, compensating the lender for taking the application, underwriting the file, and funding the loan. Which charge is she looking at?

Question 38: A brokerage in Ocala advertises a listing and states a specific monthly payment amount in the advertisement, which triggers a federal requirement to disclose additional credit terms alongside that figure. Which federal law is imposing that advertising requirement?

Question 39: An investor in Ocala buys a security representing an interest in a pool of home loans, receiving a share of the principal and interest that the underlying borrowers pay each month. What kind of security has she purchased?

Question 40: A lender in Ocala must document that a borrower has a reasonable ability to repay before making a residential mortgage loan, a requirement adopted after the financial crisis and enforced federally. Which federal requirement is being described here?

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