The CE Shop Real estate Finance Exam Questions and Answers 2026

The CE Shop Real estate Finance Exam 

1. "Private companies created by the U.S. Congress to make borrowing easier and more cost effective" describes .: Governmentsponsored enterprises 2. The Veterans Land Program in Texas .: Offers qualified veterans help with the purchase of land in Texas 3. Which of these factors is NOT used to define money?: Recognition of account 4. A good personal financial system requires reviews of performance so that you can modify it as needed.: Quarterly 5. Which of the following is a difference between mortgage brokers and mort- gage bankers?: Mortgage brokers work with multiple lenders, whereas mortgage bankers work with a single lender. 6. Juanita invests in mortgage-backed securities. What is the likely impact on her as an investor when mortgage interest rates rise?: The returns on her investment may increase. 7. For what reason do borrowers commonly seek the assistance of individual private lenders?: They're unable to find complete financing elsewhere. 8. The Federal Housing Administration, Government National Mortgage Asso- ciation, and the Office of Fair Housing and Equal Opportunity all operate under .: The U.S. Department of Housing and Urban Development 9. What is a periodic cap, as it relates to an adjustable rate mortgage?: The value that limits the amount the rate can adjust at subsequent adjustment dates 10. Which of the following statements is true about the FHA annual mortgage insurance premium?: It's paid by the borrower over the life of the loan and is recalculated annually. 11. What is a qualified mortgage?: One that meets certain lending standards 12. Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he'll be subject to. What should you tell him?: "You might consider a 1031 tax-deferred exchange." 13. What is liquidity?: The ease with which an asset is converted to cash 14. What does the income approach to value rely on when valuing single-fam- ily and two- to four-unit properties?: Gross rent multiplier 15. What does Section 8 of RESPA prohibit?: The payment of kickbacks and other fees that drive up costs to customers 16. Which U.S. Department of Veterans Affairs program allows a veteran to refinance a conventional loan to a VA loan?: Cash-Out Refinance 17. As a new licensee, it's easy to make an inadvertent mistake when repre- senting a client. What type of insurance would cover you if this happened?: - Errors and omissions 18. Chris used theVA guaranteed loan program to purchase a home five years ago. He now wants to sell that house and buy a new one. Is Chris allowed to use theVA loan program a second time?: Yes, but Chris will need to apply to have his entitlement restored once the original loan is paid off with the sale of the home. 19. Brian has just finished completing his loan application and has gathered supporting documentation needed to determine whether the application will be approved.Which of these parties best describes who Brian is?: Buyer 20. Which type of mortgage has a payment that adjusts (usually upward) based on a predetermined schedule and amount?: Graduated payment