Question 1

13-37.Physical and functional obsolescence may be curable in estimating depreciation when:

Accepted Answer

A)   the value of land is estimated as if it were vacant
B)   cost to remedy the obsolescence is not greater than the value added by the repairs
C)   the economic obsolescence is external to the property
D)   there is a professional appraisal

Question 2

13-30.Besides the physical characteristics of the property the review appraiser will consider:

Accepted Answer

A)   location
B)   time on the market
C)   terms of financing
D)   all of the above
E)   none of the above

Question 3

13-43.FHA loans can be refinanced and cash can be obtained on owner occupied properties if the loan as a percent of the acquisition cost is no more than:

Accepted Answer

A)   50
B)   65
C)   75
D)   85

Question 4

13-21.The following is required in conjunction with a property appraisal for FHA/VA financing:

Accepted Answer

A)   a loan application
B)   a deed
C)   a master certificate of reasonable value
D)   mortgage banker

Question 5

13-14.A program under which the lender essentially performs the underwriting program is:

Accepted Answer

A)   verifications of Indebtedness Program
B)   loan Processing Program
C)   direct Endorsement Program
D)   mortgage Banking Program

Question 6

13-15.A promissory note represents:

Accepted Answer

A)   the borrower's promise to obtain the loan
B)   the borrower's promise to repay the loan
C)   a deed
D)   a commitment to be a part of the closing file

Question 7

13-23.FIRREA mandates:

Accepted Answer

A)   that state certified or licensed appraisers must be used for the appraisal of properties involving federally related mortgages
B)   that state certified or licensed appraisers must be used for residential properties with a value in excess of $200,000
C)   that state certified or licensed appraisers must be used for the appraisal of commercial properties in excess of $2,000,000
D)   that state certified or licensed appraisers must be used for all appraisals of real property

Question 8

13-33.A promissory note represents:

Accepted Answer

A)   the borrower's promise to obtain a loan
B)   the borrower's promise to repay a loan
C)   a deed
D)   the lender's promise to make a loan

Question 9

13-18.The origination,servicing,and sale of mortgage loans by a firm or individual is:

Accepted Answer

A)   mortgage insurance payment
B)   mortgage banking
C)   desk review
D)   recording

Question 10

13-13.In verification of a loan,the lender:

Accepted Answer

A)   will have to verify the existence and worth of other assets
B)   will require at least a two-year history of income from all sources
C)   will verify the credit standing of the applicant
D)   all the above
E)   both a and c

Question 11

13-38.In the event that the contract price exceeds the appraised value of the property: I.the VA will cover the difference.
II) the FFIA will cover the difference.

Accepted Answer

A)   I only
B)   II only
C)   both I and II
D)   neither I nor II

Question 12

13-31.In a loan closing the following two related but distinct transactions are completed:

Accepted Answer

A)   buyer allows closing agent to prepare documents and attorney signs release
B)   title of the property passes to buyer and attorney signs release
C)   buyer signs a promissory note and title to property passes to buyer
D)   buyer signs a promissory note and attorney signs release

Question 13

13-11.The method based on the premise that transaction prices of similar properties in the neighborhood are good indicators of value is:

Accepted Answer

A)   the market approach
B)   the income approach
C)   the cost approach
D)   the prices approach

Question 14

13-26.Accepted appraisal standards require that the appraiser consider three approaches to the determination of value:

Accepted Answer

A)   cost,market,and income
B)   cost,market,best use
C)   cost,income,best use
D)   best use,market,income

Question 15

Flood insurance is required for properties located in:

Accepted Answer

A)   zone A
B)   zone B
C)   zone C
D)   zone D

Question 16

13-12.Besides physical characteristics,the review appraiser examines:

Accepted Answer

A)   location
B)   time of the market
C)   financing
D)   all of the above
E)   none of the above

Question 17

13-32.For FHA loans a lender can do virtually all of the underwriting under the:

Accepted Answer

A)   verification of indebtedness program
B)   loan processing program
C)   direct endorsement program
D)   mortgage banking program

Question 18

Under the FIRREA,for appraising federally related transactions,each federal regulatory agency establishes:

Accepted Answer

A)   lender guidelines
B)   appraisal guidelines
C)   state guidelines
D)   government guidelines

Question 19

The following is NOT considered a stage in the appraisal process:

Accepted Answer

A)   ordering the appraisal
B)   signing the appraisal
C)   monitoring the appraisal
D)   evaluating the appraisal

Question 20

13-10.The following is NOT a step in the cost approach:

Accepted Answer

A)   estimate maximization for the improvement
B)   estimate depreciation for the improvement
C)   estimate the cost of replacing the improvement
D)   estimate the value of land as vacant

Exam 13: Loan Origination, Processing, and Closing

13-15.A promissory note represents:

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13-18.The origination,servicing,and sale of mortgage loans by a firm or individual is:

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13-30.Besides the physical characteristics of the property the review appraiser will consider:

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13-37.Physical and functional obsolescence may be curable in estimating depreciation when:

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13-38.In the event that the contract price exceeds the appraised value of the property: I.the VA will cover the difference. II) the FFIA will cover the difference.

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13-32.For FHA loans a lender can do virtually all of the underwriting under the:

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13-26.Accepted appraisal standards require that the appraiser consider three approaches to the determination of value:

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13-43.FHA loans can be refinanced and cash can be obtained on owner occupied properties if the loan as a percent of the acquisition cost is no more than:

Correct AnswerverifiedShow Answer

13-11.The method based on the premise that transaction prices of similar properties in the neighborhood are good indicators of value is:

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Under the FIRREA,for appraising federally related transactions,each federal regulatory agency establishes:

Correct AnswerverifiedShow Answer

13-13.In verification of a loan,the lender:

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13-14.A program under which the lender essentially performs the underwriting program is:

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The following is NOT considered a stage in the appraisal process:

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Flood insurance is required for properties located in:

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13-12.Besides physical characteristics,the review appraiser examines:

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13-21.The following is required in conjunction with a property appraisal for FHA/VA financing:

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13-33.A promissory note represents:

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13-31.In a loan closing the following two related but distinct transactions are completed:

Correct AnswerverifiedShow Answer

13-10.The following is NOT a step in the cost approach:

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13-23.FIRREA mandates:

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