Both FHA and VA operate under an entitlement program.

Question 21 options:

	1) True
	2) False

Question 22 (2 points)

The VA guarantees both the lender and the borrower against losses.

Question 22 options:

	1) True
	2) False

Question 23 (2 points)

A promissory note represents:

Question 23 options:

1)	the borrowers promise to obtain the loan

2)	the borrowers promise to repay the loan

3)

a deed

4)	a commitment to be a part of the closing file

Question 24 (2 points)

In verification of a loan, the lender:

Question 24 options:

1)	will have to verify the existence and worth of other assets

2)	will require at least a two-year history of income from all sources

3)	will verify the credit standing of the applicant

4)	all the above

5)	both (1) and (3)

Question 25 (2 points)

Due to efficiencies of the secondary mortgage market, conforming loans often carry interest rates below that of non-conforming loans by:

Question 25 options:

1)	2 basis points

2)	an average of 7 basis points

3)	200 basis points

4)	1050 basis points