Real Estate Finance – 7th Edition
Chapter 5 Quiz
By Walt Huber, MS and Levin P. Messick, IFAC
© April 2009, Educational Textbook Company
1. The first piece of legislation passed by Congress after the Civil War that dealt with real estate was:
a. the Home Mortgage Disclosure Act 1968.
b. the Civil Rights Act of 1866.
c. the Equal Credit Opportunity Act of 1876.
d. none of the above.
2. Redlining is:
a. refusal to make loans on properties in certain neighborhoods.
b. not lending to bad credit customers.
c. not lending on insufficient collateral.
d. all of the above.
3. The Real Estate Settlement Procedures Act:
a. was passed to protect consumers from abusive lending practices.
b. was established in 1974.
c. requires that consumers receive a HUD booklet.
d. all of the above.
4. A Standard Metropolitan Statistical Area:
a. is a city.
b. includes suburbs.
c. has 50,000 or more in population.
d. all of the above.
5. When a borrower has the right to cancel any agreement entered into within three business days after the close of the transaction, it is called:
a. cancellation insurance.
b. Regulation Z.
c. right of rescission.
d. right to change one’s mind.
6. Inducing property owners in a neighborhood to sell by predicting the entrance of minorities into a neighborhood is called:
a. blockbusting.
b. redlining.
c. uniform settlements.
d. none of the above.
7. When a salesperson is channeling the various applicants to specific areas in order to maintain or change the character of those neighborhoods, it is called:
a. morphing.
b. steering.
c. blockbusting.
d. driving.
8. The effective yield on a loan is called the:
a. prime rate.
b. compound rate.
c. adjustable rate.
d. annual percentage rate.
9. The smallest demographic area used by the Bureau of the Census is called a:
a. census tract.
b. caste system.
c. census region.
d. census block.
10. The Uniform Settlement Statement:
a. must be kept by a lender for at least 2 years.
b. provides a complete statement of all charges.
c. is provided to the borrower.
d. all of the above.
Real Estate Finance – 7th Edition
Chapter 5 Quiz Answers
© April 2009, Educational Textbook Company
1. b (p. 83)
2. a (p. 84)
3. d (pp. 87-88)
4. d (p. 85)
5. c (p. 92)
6. a (p. 84)
7. b (p. 84)
8. d (p. 92)
9. a (p. 86)
10. d (p. 88)
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