Free CeMAP Module II Questions and Answers

Question 1

What is the typical insurance policy Waiver of Premium (WOP) deferral period?

Accepted Answer

13 weeks

Answer

4 weeks

Answer

6 months

Answer

It is selected by the policy holder

Question 2

The following is stated in the three main Land Law Acts of 1925, with the exception of:

Accepted Answer

The borrower has no legal right to “Let” the mortgaged property

Answer

A minor cannot hold an interest in land

Answer

Where two or more loans are secured on a property their priority is determined by the date of their registration

Answer

The Lender is not liable for any loss made on the execution of it's power of sale

Question 3

A clause in Peter's mortgage offer stipulates that some repairs must be completed within three months of the property's completion. What does this potentially mean?

Accepted Answer

An undertaking is required

Answer

A retention is required

Answer

A HLC is required

Answer

A new valuation is required

Question 4

Sylvie owns and operates her own design company. She invests cautiously. In the case of her death, which type of protection is most likely to be appropriate for her capital payback mortgage?

Accepted Answer

Decreasing Term Insurance

Answer

With profit endowment

Answer

Level Term Insurance

Answer

Unit linked endowment

Question 5

Which of the following statements does not invalidate a guarantee?

Accepted Answer

Change in occupation of the guarantor

Answer

Undue influence exerted on the guarantor

Answer

Duress exerted on the guarantor

Answer

La.ck of capacity of the guarantor

Question 6

What will happen to house prices if the supply of housing exceeds the demand?

Accepted Answer

Prices are likely to go down

Answer

Prices are positively correlated to interest rates and will move in the same direction

Answer

Prices are likely to go up

Answer

Prices will stay the same

Question 7

Under a full with profit endowment mortgage, the borrower is guaranteed:

Accepted Answer

Repayment of the loan on maturity

Answer

Flexibility regarding the mortgage term

Answer

Early surrender without charges

Answer

Tax efficient and low cost repayment option

Question 8

When one of two joint tenants passes away, the property will automatically:

Accepted Answer

Belong to the survivor

Answer

Belong to the deceased’s estate

Answer

Be held in trust until the death of the survivor

Answer

Be inherited by any children

Question 9

When one of two joint tenants passes away, the property will automatically:

Accepted Answer

Belong to the survivor

Answer

Be inherited by any children

Answer

Be held in trust until the death of the survivor

Answer

Belong to the deceased’s estate

Question 10

In July 2004, a residential mortgage was suggested for a borrower buying their first house. How does the Mortgage Conduct of Business Rules address mortgage administration?

Accepted Answer

Regulation does not apply

Answer

Transitional regulation rules apply

Answer

It is deemed to be semi-regulated

Answer

It is fully regulated