Title insurance protects the buyer from title claims against the 
property.



TrueFalse

A conforming loan:



a. 
Exceeds the loan limits of loans that Fannie Mae and Freddie Mac 
can buy

b. Meets loan limits of loans that Fannie Mae and Freddie Mac can 
buy

c. Cannot be purchased by GSEs such as Fannie Mae and Freddie 
Mac

d. Is another term for fixed-rate mortgage loan
Payment to income 
ratio is BEST described as:



a. The factor used to determine if 
interest on mortgage loans is tax deductible

b. The 
only measure of a borrowers ability to fulfill his or her loan obligations

c. The ratio of the estimated 
rental income to the expected payments on a rental property

d. The ratio 
of the expected payments on a property to the income of the borrower
The Federal Housing Administration 
(FHA) provides mortgage insurance, but does not make 
loans.



TrueFalse

What document usually summarizes the 
sources, disbursements, charges and credits associated with a real estate 
closing?



a. The purchase contract

b. The deed of 
trust

c. The listing agreement

d. The settlement statement

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