Please answer the following 12 questions. In some cases the answers are
multiple choice, in others you write a short answer.
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We score the tests and let you know the results. A passing grade is 70%.
All payments used in the questions below are made monthly.
What is your name?
1
A new mortgage has a principal balance of $45,000, a term
of 360 months, an interest rate of 7.75% p.a.
What are the monthly
payments?
415.23
322.39
311.43
2
A mortgage has a current balance
of $25,100, monthly payments of $222.63, an interest rate of 9.00%
p.a.
How many months are still outstanding?
210
250
240
3
A mortgage is interest only. The
initial principal balance is $10,000. The interest rate is 12.1% p.a. The
monthly payments are $100.83. The mortgage balloons after 60 months.
What is the balloon amount?
9,770.85
0.00
10,000.00
4
A deed of trust has an initial
balance of $29,000. It is fully amortizing over 180 months at an interest
rate of 8.00% p.a. The monthly payments are $277.14. You want to purchase
this deed of trust at closing to yield you 11.00% p.a.
How much would you pay?
24,383.24
25,142.63
23,409.00
5
A mortgage has an initial
balance of $60,000. It is amortized over 180 months at an interest
rate of 9.00% p.a. 15 payments have been made and the current balance is $57,492.59. The monthly payments are $608.56. It has a balloon after 60 payments. You want to purchase
the last 45 monthly payments only (not the balloon) yield you 11.00% p.a.
How much would you pay?
22,357.05
26,702.10
20,723.76
6
Same details as
question 5 above. But this time you want to buy the balloon only,
$48,040.76, to yield you 13% p.a. How much would you pay?
28,777.95
29,582.16
30,615.41
7
A note seller asks
for your quote, but tells you they have already had an offer from someone
else. You review the details and the other quote is for more than you
think the note is worth. Do you:
1. Offer to better the other bid, subject to review. Intending to find
some reason later to lower your offer.
2. Wish them good luck and ask them to call you if the deal falls through.
3. Ask the name of the other broker and then tell the seller about their
terrible reputation. Even if you've never heard of them.
1
2
3
8
The widow of an old friend owns a mortgage. She offers it to you. You know she trusts you and will not be shopping the note. Do
you:
1. Offer a lower price than usual.
2. Offer the same price as usual.
1
2
9
You would send an estoppel affidavit to the borrower
to:
1. Confirm the balance of the mortgage.
2. Confirm the number of payments that have been made.
3. Confirm the borrower is not in bankruptcy.
4. All of the above.
1
2
3
4
10
You purchase part
of an mortgage leaving the note seller with the remaining payments or
balloon. The note goes into foreclosure. Who gets paid out first from the
foreclosure sale proceeds?
1. You.
2. The original lender/mortgagee.
3. You both share equally depending on how much you were owed at the time.
National Association of Note Buyers
