RIRES Rhode Island Real Estate Salesperson - Set 5 - 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 family wants to buy a single-family home in a sparsely populated rural town well outside Providence and asks about a federal program aimed at rural homebuyers. Which agency administers loan programs designed to help families purchase homes in rural areas?
Question 42: When a borrower obtains a home loan, one document stands as the borrower's personal, written promise to repay the debt according to agreed terms, stating the amount owed, the interest rate, and the schedule of payments. Which instrument is described?
Question 43: An eligible veteran shopping for a Newport home learns that the Department of Veterans Affairs backs qualified financing so that, up to the guaranteed limit, no down payment is required. What term describes the government's promise that supports this benefit to the lender?
Question 44: A Woonsocket buyer believes the Federal Housing Administration will directly lend her the purchase money at a government rate. Her agent corrects this, explaining what the agency actually does for the roughly three-and-one-half percent down borrower. Which statement best describes the FHA's real role?
Question 45: In states that use a three-party security instrument, one document conveys bare legal title to a neutral third party who holds it on behalf of the lender until the debt is repaid in full. Which party holds that bare legal title?
Question 46: A first-time buyer purchasing a Cranston condo obtains a loan insured by the Federal Housing Administration and is charged an up-front premium at closing plus an annual amount collected monthly. Which required charge on this government-insured financing do these two payments together represent?
Question 47: A first-time buyer in Warwick signs paperwork to borrow money for a home purchase and pledges the property as security, giving the lender both a promissory note and a mortgage in return for the loan funds. What term correctly identifies this borrower?
Question 48: A mortgage broker inflates a borrower's stated income on the application, steers the unsophisticated buyer into a high-fee loan with hidden terms, and encourages repeated needless refinancing. Which label best captures this pattern of abusive and deceptive lending conduct?
Question 49: A loan officer reviewing an application wants to weigh the applicant's marital status and whether part of her income comes from public assistance. A federal credit law forbids basing the decision on those factors. Which statute governs this prohibition?
Question 50: A home loan begins at one interest rate that may then move up or down over the term, tied to a published economic index, with the lender adding a set margin to that index at each adjustment. Which type of loan is this?
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