This preview shows page 1. Sign up to view the full content.
Unformatted text preview: chool.com) 10-31 REAL ESTATE FINANCE A. B. C. D. 7. First trust deeds of under $30,000. Second trust deeds of under $20,000. Purchase money loans carried back by sellers. Loans maturing in more than six years. Which of the following loans would a broker NOT be limited as to commission or loan costs? A. B. C. D. A first trust deed for $10,000 A second trust deed for $20,000 Both A and B Neither A nor B 8. The maximum loan costs that can be charged for a $10,000 second trust deed would be: A. B. C. D. 15% of the loan $390 $500 $700 9. The law specifically governing the activities of loan brokers is called the A. B. C. D. Real Estate law. Real Property Loan law. Mortgage loan Disclosure law. Real Property Securities Act. 10. An annual report from a loan broker to the Commissioner: A B C D Is required of all loan brokers Involves a CPA's audit of the loan broker's trust fund accounts Is required only of brokers doing a certain minimum volume and dollar amount of business Both B and C Answers: 1–B, 2–D, 3–C, 4–C, 5–C, 6–B, 7–B, 8–B, 9–B, 10–C 10-32 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 11: FINANCING DISCLOSURE REQUIREMENTS CHAPTER 11: FINANCING DISCLOSURE REQUIREMENTS PREVIEW
When a real estate mortgage broker acts as a lender or on behalf of a lender, he/she must be in compliance with all applicable regulations. In doing so, however, brokers find that conflicts occur between federal law and state law. At a federal level, the Consumer Credit Protection Act and the Federal Truth–in– Lending Act, are the two regulations most frequently dealt with. For California, both the California Department of Corporation (DOC) and Department of Real Estate (DRE) regulations oversee the activities of lenders, including laws found in both the Business Professions Code and the California real estate law. TRUTH IN LENDING ACT / REGULATION Z
Truth–in–Lending is the name used in referring to Regulation Z issued by the Federal Reserve Board under the Consumer Credit Protection Act of 1969. The...
View Full Document
This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10