PSI Practice Test: Video 1 Answers (25 Questions)

Question 1

Federal laws about truth-in-lending are also called _____.

Accepted Answer

Regulation Z

Answer

Federal laws regarding truth-in-lending are commonly referred to as Regulation Z. This regulation implements the Truth in Lending Act (TILA), which mandates that lenders disclose key credit terms, such as the Annual Percentage Rate (APR) and finance charges, to consumers. Regulation Z aims to protect borrowers by ensuring transparency and allowing for informed credit decisions.

Question 2

How many brokers does an owner list the property within an exclusive right-to-sell listing?

Accepted Answer

One

Answer

In an exclusive right-to-sell listing, the owner lists the property with only one broker. This type of agreement grants that single broker the sole right to sell the property during the listing period. The broker is entitled to a commission regardless of who finds the buyer, even if the seller finds the buyer themselves, offering the most protection to the listing broker.

Question 3

Under the Equal Credit Opportunity Act (ECOA), a lender may NOT discriminate based on which of the following?

Accepted Answer

Marital status

Answer

ECOA prohibits credit discrimination based on marital status, race, sex, religion, national origin, age, or receipt of public assistance.

Question 4

Most of the time, a competitive market analysis is used to _____.

Accepted Answer

setting a listing price

Answer

A competitive market analysis (CMA) is most frequently used by real estate agents to help sellers determine an appropriate listing price for their property. By comparing the subject property to recently sold, active, and expired listings of similar properties in the same area, a CMA provides an estimate of the property's current market value. This analysis helps sellers price their home competitively to attract buyers.

Question 5

Which of the following loan types does NOT require mortgage insurance regardless of the down payment amount?

Accepted Answer

VA loan

Answer

VA loans do not require monthly mortgage insurance premiums regardless of the down payment or LTV ratio, a significant benefit for eligible veterans.

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI Practice Test: Video 1 Answers (25 Questions)