72. The FHA:a. buys loans in the secondary market.                                       b. sells loans to the secondary market.                                        c. is a direct lender.d. insures loans only.       

73. A scheme where the down payment is actually borrowed or carried as a second mortgage by the seller but never documented in the purchase agreement, escrow instructions, or recorded is known as:a. an air loan.b. leverage.c. a silent second.d. a disappearing second.

36. The standard loan-to-value ratio has traditionally been:a. 60%.                                      b. 70%.                                      c. 80%.d. 90%.

37. Based on FNMA and FHLMC guidelines, mortgage interest rates are generally limited by lenders to an annual increase of:a. 2%.                                    b. 20%.                                     c. 200%.d. none of the above.

31. The availability of funds in the primary market depends on the existence of the:a. secondary market.b. stock market.c. commodities market.d. foreign exchange market.

68. In a growth equity mortgage (GEM):a. payments increase annually.          b. payments decrease annually.                             c. interest rates decrease annually.d. none of the above.

62. In a foreclosure under a Deed of Trust the Notice of Sale must be published in a newspaper for:a. 6 weeks.                               b. 3 weeks.c. 5 days.                        d. 3 days.  

7. Predatory loan practices include:a. fraud.                                         b. usury.                              c. deception.                                 d. all of the above.

33. Prior to getting licensed by the NMLS all applicants must:a. complete 20 hours of pre-licensing education approved by NMLS.b. pass a 125 question national Uniform state test (UST).c. provide fingerprints for a FBI criminal background check.d. all of the above.

8. Mortgage bankers/mortgage companies:a. both originate and loan funds.                                    b. act only as “go-betweens.”                                         c. are part of the secondary market only.d. none of the above.