IREB Illinois Real Estate Broker Examination - Set 2 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A real estate broker accepts a cash payment from a title insurance company in exchange for referring buyers to that title company for closings on residential one-to-four-unit transactions. Which of the following BEST describes the legal status of this arrangement under federal law?

Permitted as a permitted referral marketing payment

Permitted if disclosed orally to the client

Prohibited under RESPA Section 8 anti-kickback

Permitted only with written client consent

Question 42: Under the TILA-RESPA Integrated Disclosure rule, a lender must deliver the Loan Estimate after the borrower submits an application containing certain information. Which of the following BEST identifies the timing requirement for the Loan Estimate delivery?

Within three business days of application

Within thirty calendar days of application

Within ten business days of application

Within seven business days of consummation

Question 43: A borrower closes on a refinance of her primary residence in Bolingbrook. The borrower has a right to rescind the loan within a federally defined period after consummation under TILA. Which of the following BEST describes the rescission window for this refinance?

Thirty business days before maturity

Five business days including Sundays

Ten calendar days from closing date

Three business days including Saturdays

Question 44: A lender denies a residential mortgage application based on a credit history review and other underwriting factors. The applicant requests reasons for the denial. Which of the following BEST identifies the federal statute governing the lender's notice obligation in this situation?

Fair Credit Reporting Act dispute provisions

Equal Credit Opportunity Act adverse action rules

Real Estate Settlement Procedures Act disclosure

Truth in Lending Act loan estimate timing

Question 45: Under the Equal Credit Opportunity Act, certain classes receive protection in credit transactions that go beyond those covered by the federal Fair Housing Act. Which of the following BEST identifies a class protected by ECOA but not by the federal Fair Housing Act?

Race and color of the applicant

National origin of the applicant

Receipt of public assistance income

Familial status of household

Question 46: A homebuyer in Hyde Park applies for a conventional mortgage with a thirty-year amortization. Each scheduled payment includes the same total dollar amount of principal and interest over the life of the loan. Which of the following BEST describes this loan structure?

Interest-only loan with balloon at maturity

Adjustable-rate mortgage with index resets

Negative amortization with growing balance

Fully amortized loan with level payments

Question 47: A builder in Aurora finances new construction with a short-term loan that disburses funds in stages as the building progresses, with interest only paid on the outstanding draws. Which of the following BEST identifies this loan type?

Construction loan with progressive draws

Reverse mortgage tied to age

Wraparound seller financing structure

Adjustable-rate mortgage with caps

Question 48: A seller in Decatur enters into an installment sales contract with a buyer who occupies the property and makes monthly payments toward the eventual conveyance of legal title. The seller retains legal title until full payment. Which Illinois statute governs the buyer's protections in this arrangement?

Illinois Mortgage Foreclosure Law

Illinois Plat Act provisions

Illinois Installment Sales Contract Act

Illinois Land Trustees Act

Question 49: Garn-St. Germain Depository Institutions Act of 1982 preempts state restrictions on enforcement of due-on-sale clauses for most residential mortgages, with certain exceptions. Which of the following BEST identifies a transfer that the Act protects from due-on-sale enforcement?

Investor sale of property to a third-party buyer

Transfer to a spouse upon the borrower's death

Sale to a corporate entity for tax planning

Conveyance to a non-relative business partner

Question 50: A lender advertises a residential mortgage product by stating, "Only twenty thousand dollars down for your dream home." This statement is a trigger term under federal Truth in Lending advertising rules. Which of the following BEST identifies the additional disclosures the lender must provide?

Down payment amount, repayment terms, and APR

Lender's branch addresses across the country

List of all available adjustable-rate options

Federal funds rate at time of advertisement

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