foreclosure suit
A lawsuit filed by the lender requesting that the borrower's interest in a property be cut off is called a
a. defeasance suit.
b. trustee's suit.
c. foreclosure suit.
d. reconveyance suit.
short term, high risk.
Construction loans are
a. long term, high risk.
b. long term, low risk.
c. short term, low risk.
d. short term, high risk.
chattel mortgages.
Fannie Mae buys and sells all mortgages EXCEPT
a. VA loans.
b. FHA loans.
c. conventional loans.
d. chattel mortgages.
covenant of good repair.
The portion of a mortgage that requires the borrower to preserve and maintain the pledged property is called the
a. covenant of good repair.
b. covenant against encumbrances.
c. collateral.
d. bond.
ground lease
Land is leased to a tenant for a long period of time and the tenant builds improvements on the land. At the end of the lease term, the improvements become the property of the fee owner. Such an arrangement is called a
a. ground lease.
b. tax-free exchange
Borrower
Who is the trustor in a deed of trust?
a. Vendor
b. Grantor
c. Lender
d. Borrower
legal title
A mortgagee in a lien theory state holds
a. legal title.
b. naked title.
c. naked legal title.
d. a note.
FDIC
All of the following offer secondary mortgage market programs EXCEPT
a. GNMA.
b. FDIC.
c. FHLMC.
d. FNMA.
Mortgage bankers
Which of the following specializes in making loans and reselling them?
a. Mortgage bankers
b. FNMA
c. Mortgage brokers
d. VA
all of the above.
In addition to borrower income, job stability, and credit adequacy, lenders will also evaluate a potential borrower's
a. assets and liabilities.
b. intent to occupy the property.
c. source of settlement funds.
d. all of the above.
acceleration clause.
When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the
a. alienation clause.
b. pre-payment clause.
c. subordination clause.
d. acceleration clause.
a reverse annuity mortgage
An elderly couple is "house rich, money poor". To obtain money now while still living in their magnificent home, they should look for
a. negative amortization.
b. a graduated payment mortgage.
c. a reverse annuity mortgage.
d. an adjustable rate mortgage.
savings and loans.
FHLMC was formed primarily to provide a secondary market for
a. mortgage companies.
b. insurance companies.
c. savings and loans.
d. commercial banks.
resupply capital to primary lenders by guaranteeing repayment of pools of mortgage loans.
The basic role of the GNMA is to
a. sell mortgage pools to money market funds.
b. resupply capital to primary lenders by guaranteeing repayment of pools of mortgage loans.
c. facilitate the resale of mortgage loans by marketing participation certificates.
junior mortgage holder.
In a foreclosure, a surplus money action would be filed by the
a. junior mortgage holder.
b. mortgagee.
c. first mortgagor.
d. senior mortgage holder.
judicial; without
Strict foreclosure is a type of ____________ foreclosure ____________ a statutory redemption period.
a. nonjudicial; with
b. judicial; with
c. nonjudicial; without
d. judicial; without
judicial protection affording more time for the borrower to make up a deficiency
One major advantage of a deed of trust over a mortgage is the
a. judicial protection affording more time for the borrower to make up a deficiency.
b. courts' interpretations of rights protecting the borrower.
c. statutory right of redemption required by m
insuring the loan.
The role of the FHA in residential mortgage lending is
a. loaning the money.
b. as a secondary lender.
c. insuring the loan.
d. guaranteeing the loan.
Fair Credit Reporting Act.
The right of individuals to inspect their file at a credit bureau is found in the
a. Truth-in-Lending Act.
b. Regulation Z.
c. Fair Credit Reporting Act.
d. Federal Consumer Credit Protection Act.
Equitable; statutory
____________ right of redemption allows the borrower to regain his property by paying the obligations against it in full before the foreclosure sale; ____________ right of redemption allows the borrower to regain his property for up to one year after the
Mortgage brokers
Which of the following specializes in bringing lenders and borrowers together without lending their own money?
a. Insurance companies
b. Commercial banks
c. Mortgage bankers
d. Mortgage brokers
Pet owners
Under the Fair Housing Law of 1968, apartment managers may discriminate against which of the following categories of people?
a. American Indians
b. Pet owners
c. White Anglo-Saxon Protestants
d. Females
tight money.
Discount points are more likely to be used during periods of
a. available money.
b. cash sales.
c. tight money.
d. seller financed sales.
surplus money action.
A lawsuit filed by a junior mortgage holder to ensure that they receive any money due out of the proceeds from the foreclosure sale after more senior lienholders have been paid is called a
a. foreclosure action.
b. notice of lis pendens.
c. surplus money
block busting.
The illegal practice of inducing panic selling in a neighborhood for financial gain is called
a. discrimination.
b. testing.
c. steering.
d. block busting.
insure loans.
The primary purpose of FHA is to
a. stimulate the housing market.
b. provide a secondary mortgage market.
c. insure loans.
d. loan money.
a term loan.
The type of loan whereby the borrower makes interest only payments during the life of the loan with the entire principal due for the final payment is called
a. a discounted loan.
b. a partially amortized loan.
c. a term loan.
d. an amortized loan.
good repayment records
When considering loan applications, lenders like to see
a. derogatory information.
b. good repayment records.
c. information at least seven years old.
d. very little use of credit cards.
truth-in-lending.
Regulation Z deals primarily with
a. truth-in-lending.
b. annual percentage rates.
c. statue of frauds.
d. escrow fees.
servicing the loan.
A lender who continues to collect mortgage payments even after selling the loan is said to be
a. servicing the loan.
b. discounting the loan.
c. laundering money.
d. originating loans.
Both a and b
Which of the following is true of a nonjudicial foreclosure?
a. It does not go to court and is not heard by a judge.
b. It can result from either the power of sale or entry and possession foreclosure method.
c. Lenders no longer use this method since it i
Inducing owners to sell by telling them an untruth about falling property values
A person would be guilty of discriminatory block busting in which of the following cases?
a. Inducing owners to sell by telling them an untruth about falling property values
b. Circulating information about socio-economic changes in a neighborhood
c. Prof
Mortgage banker
To whom can a borrower turn for a direct loan for the financing of a single-family dwelling?
a. Federal Housing Administration
b. Mortgage banker
c. Pension fund
d. Government National Mortgage Association
both a and b.
As an owner of real estate, one is exposed to losses by
a. other persons being injured on the property.
b. damage to the property.
c. both a and b.
d. neither a nor b.
Flood damage to the insured premises
A homeowner's insurance policy will NOT protect against which of the following?
a. Flood damage to the insured premises.
b. Theft of personal property.
c. Public liability directly connected with the insured property.
d. Damage to household goods containe
lower initial interest rates.
In order to make adjustable rate mortgage loans more attractive to borrowers, lenders offer
a. lower down payments.
b. lower insurance rates.
c. lower initial interest rates.
d. gifts such as appliances, trips, etc.
origination fees.
The expenses that a lender incurs while processing a mortgage loan application are recovered from the borrower as
a. private mortgage insurance.
b. discount points.
c. origination fees.
d. mortgage insurance premium.
one year
The most common adjustment period for ARMs is
a. quarterly.
b. daily.
c. six months.
d. one year.
the number of parties.
One of the main differences between a regular mortgage and a deed of trust is
a. recording.
b. the number of parties.
c. ownership.
d. rights of possession.
a promissory note.
In the United States, the instrument most commonly used to evidence a debt on real property is
a. a mortgagee's title policy.
b. a bill of sale.
c. a promissory note.
d. an earnest money agreements.
adjustment period.
The interest rate of an adjustable rate mortgage may rise or fall based on the
a. adjustment period.
b. index.
c. margin.
d. interest rate cap.
redlining.
The refusal of a lender to make loans in a particular area or neighborhood, regardless of the quality of the structure or the ability of the borrower to repay, is known as
a. steering.
b. evaluation.
c. blockbusting.
d. redlining.
broker employing the salesperson
A listing is a contract between a property owner and the
a. broker employing the salesperson.
b. multiple listing board.
c. salesperson taking the listing.
d. Association of REALTORS.
a member of NAR.
The term "REALTOR" is synonymous with
a. real estate broker.
b. real estate licensee.
c. a real estate company.
d. a member of NAR.
an exclusive right-to-sell listing
The broker is helping the home buyer obtain the lowest possible price. As agent for the buyer, the broker and the buyer have probably signed an agreement called
a. an open listing.
b. an exclusive right-to-sell listing.
c. a net listing.
d. an exclusive a
an exclusive right-to-sell listing.
A listing that does not require the listing agent to show that he or his subagents are the procuring cause in order to earn a commission is
a. a net listing.
b. an exclusive right-to-sell listing.
c. illegal.
d. an exclusive agency listing.
broker is liable for the acts of the salesperson.
A real estate broker differs from a real estate salesperson under the law in that the
a. broker is liable for the acts of the salesperson.
b. salesperson may take a listing with him when he changes brokers.
c. law recognizes no differences.
d. salesperson
junior to a superior mortgage lien
A second mortgage is
a. paid off 50/50 with a first mortgage at foreclosure.
b. junior to a superior mortgage lien.
c. a smaller loan.
d. a seller's lien.
The successful bidder at the trustee's sale receives a trustee's deed at the time of sale.
When default is declared on a loan secured by deed of trust, which of the following is true?
a. The successful bidder at the trustee's sale receives a trustee's deed at the time of sale.
b. After a year, the successful bidder at the trustee's sale receive
the redemption period allowed.
One of the major differences between a regular mortgage and a deed of trust is
a. there is no difference.
b. a mortgage hypothecates personal property.
c. the redemption period allowed.
d. a deed of trust must be recorded.
mortgage first recorded.
Unless there is a specific agreement to the contrary, the mortgage having first priority will be the
a. mortgage first recorded.
b. original construction loan.
c. mortgage with the earliest signature date.
d. mortgage for the highest amount.
The mortgagee
Of the following parties to a mortgage, whose interest is benefited by an acceleration clause?
a. A future owner
b. The mortgagee
c. The mortgagor
d. The trustee
when the deed of trust provides the easiest way for the lender to recover their money.
A lender will always use a deed of trust as the debt security instrument
a. when the borrower cannot qualify for a regular mortgage.
b. when the deed of trust is allowed by state law.
c. when the borrower will agree to using a deed of trust.
d. when the d
insure lenders against borrower default
The primary purpose of private mortgage insurance (PMI) is to
a. insure lenders against physical damage to the collateral.
b. insure borrowers against lender bankruptcy.
c. insure lenders against borrower default.
d. provide additional security for govern
Income adequacy
Which of the following is given consideration in evaluation of a loan application?
a. Race
b. Marital status
c. Income adequacy
d. Sex
trustee issues a release deed for reconveyance.
Upon payment of the debt secured by a deed of trust, the
a. trustor issues a deed for reconveyance.
b. trustee issues a release deed for reconveyance.
c. grant deed is issued to the trustee.
d. trustor now has equitable title.
Fair Housing Act of 1968.
A law requiring lenders to have a plan to make loanable funds available for all low-income neighborhoods it serves as well as more affluent neighborhoods is the
a. Presidential Order of 1970.
b. Fair Housing Act of 1968.
c. Community Reinvestment Act.
d.
the franchise office is locally owned and independently operated; the national real estate firm is not.
The main difference between a franchise office and a local office of a national real estate firm is
a. the national real estate firm is locally owned and independently operated; the franchise office is not.
b. the franchise office provides a name that con
The secondary market originally consisted of correspondent relationships among individual banks.
Which of the following statements about the secondary mortgage market is true?
a. The secondary market originally consisted of correspondent relationships among individual banks.
b. The early development of standardized loan forms and lending procedures e
reused as the original loan guaranteed is paid off.
A veteran's VA guarantee entitlement may be
a. reused as the original loan guaranteed is paid off.
b. assumed by another borrower, including a non-veteran.
c. used on more than one property at one time.
d. all of the above.
life insurance companies.
Lenders who could be described as investing a major portion of their assets in long-term real estate loans, preferring not to service their own loans, and favoring large commercial properties would be
a. mutual savings banks.
b. life insurance companies.
agent may experience a conflict of interest.
The main problem that can arise with a dual agency is the
a. buyer and seller are not kept informed.
b. buyer may not qualify for a loan.
c. seller may become demanding.
d. agent may experience a conflict of interest.
beneficiary.
When a loan is secured by deed of trust, the promissory note is held by the
a. trustee.
b. grantee.
c. beneficiary.
d. trustor.
jumbo mortgages.
FNMA buys all mortgages EXCEPT
a. jumbo mortgages.
b. second mortgages.
c. conventional first mortgages.
d. seller financed mortgages.
both a and b.
The lender is rightly concerned that the collateral remain intact during the loan term. One way to alleviate such fears is through the use of a
a. covenant of insurance.
b. covenant against removal.
c. covenant of further assurance.
d. both a and b.
both a and b
Discrimination in the availability of housing on the basis of race is prohibited by the
a. Civil Rights Act of 1866.
b. Fair Housing Law of 1968.
c. both a and b.
d. neither a nor b.
deed in lieu of foreclosure.
A mortgagor signs a deed conveying title to the mortgagee, leaving the mortgagee without recourse. This is an example of
a. defeasance.
b. satisfaction of mortgage.
c. deed in lieu of foreclosure.
d. deed of surrender.
Payment cap
Which feature below protects an ARM borrower from large monthly payment increases?
a. Index
b. Negative amortization clause
c. Margin
d. Payment cap
origination fees
The expenses that a lender incurs while processing a mortgage loan application are recovered from the borrower as
a. discount points.
b. origination fees.
c. mortgage insurance premium.
d. private mortgage insurance.
a graduated payment mortgage.
A loan in which the initial payment is set artificially low, and the payments increase each year for the first several years before leveling out, is know as
a. a graduated payment mortgage.
b. a price level adjusted mortgage.
c. an increasing equity loan.
Borrower's regular income
Which of the following would be most important to a lender qualifying an individual for a residential mortgage loan?
a. Pest and dry rot report
b. Borrower's regular income
c. Spouse's part-time income
d. Overtime income
there are no schools nearby.
A property can be exempt from allowing children if
a. there is no play area.
b. there is a swimming pool.
c. there are no schools nearby.
d. it is generally occupied by persons 62 years or older.
commingling and is illegal.
If a broker is a little short of funds and "borrows" some money from his escrow account to pay monthly bills, this activity is called
a. conversion and is illegal.
b. commingling and is illegal.
c. shrewd business and is legal.
d. misrepresentation and ma
hold hearings in response to complaints of improper actions by licensees
Real estate commissions or departments typically do all of the following EXCEPT
a. review license exam answers.
b. hold hearings in response to complaints of improper actions by licensees.
c. enact new real estate legislation or amend existing legislation
is puffing.
If, in showing a property, the salesperson said, "In my opinion, this house is absolutely the greatest in the world," the salesperson
a. is puffing.
b. is guilty of redlining.
c. could lose his license for fraud.
d. is guilty of misrepresentation.
savings bonds.
Affordable housing loans are often financed in a particular city or state through a special issue of
a. savings bonds.
b. park and recreation lands.
c. foreclosed properties.
d. municipal bonds.
payment of dues to the local REALTORS Association.
A residential real estate salesperson can usually expect from his or her principal broker all of the following EXCEPT
a. supervision, training, and advice.
b. signs, advertising, office space, and supplies.
c. access to multiple listing services.
d. payme
stated in the listing contract
The amount of commission to be paid the broker for selling a property is
a. negotiated at the time a buyer is found.
b. stated in the listing contract.
c. set by law.
d. set forth in the rules of the state real estate commission.
a transfer of title.
In some states, a mortgage is considered to be a lien on real property. In other states a mortgage is interpreted as
a. a transfer of title.
b. a bona fide purchase.
c. a sales contract.
d. equitable title.
Insured by FHA
A conventional mortgage is which of the following?
a. Insured by FHA
b. Guaranteed by VA
c. Neither insured nor guaranteed by the government
d. Available only to non-veterans
gives the lender the right to call the entire loan balance due upon sale or other conveyance.
A "due on sale" clause
a. is the right of a mortgagor to repay a loan.
b. gives the lender the right to call the entire loan balance due upon sale or other conveyance.
c. gives the mortgagor the right to sell his property with a loan assumption by the buy
business loans.
Historically, commercial banks would have been most likely to deal heavily in
a. mobile home purchase loans.
b. single-family detached housing loans.
c. house boat loans.
d. business loans.
when the borrower cannot qualify for a regular mortgage
A lender will always use a deed of trust as the debt security instrument
a. when the deed of trust provides the easiest way for the lender to recover their money.
b. when the borrower cannot qualify for a regular mortgage.
c. when the deed of trust is all
Special
When a broker takes a listing, he is acting under what kind of agency?
a. General
b. Ostensible
c. Implied
d. Special
all of the above.
To encourage residential lending, savings and loan associations historically were
a. limited in the interest they could pay on savings accounts.
b. subject to special tax laws that allowed them to defer income taxes as long as profits were not distributed
budget mortgage
In order to ensure that the mortgagor has enough money to pay yearly property taxes and hazard insurance, the lender may insist on a
a. budget mortgage.
b. blanket mortgage.
c. term loan.
d. package mortgage.
Property taxes
Which of the following claims against a real property interest would be the first to be satisfied?
a. First trust deed
b. Property taxes
c. Newly filed IRS tax lien
d. Second trust deed
an up-front mortgage insurance premium and an annual premium.
FHA borrowers can now expect to pay
a. nothing, because FHA insurance is available for free to qualified borrowers.
b. an up-front mortgage insurance premium only.
c. an annual premium only.
d. an up-front mortgage insurance premium and an annual premium.
Fair Housing laws.
When making a mortgage loan application, borrowers are protected from discrimination based on marital status by the
a. Equal Credit Opportunity Act.
b. Fair Credit Reporting Act.
c. Fair Housing laws.
d. Real Estate Settlement Procedures Act.
real estate investment trusts.
One may find financing for a single family dwelling at all of the following EXCEPT
a. real estate investment trusts.
b. commercial banks.
c. mortgage bankers.
d. savings and loans.
an open-end mortgage
A loan arrangement whereby a lender extends a line of credit is
a. a buy-down mortgage.
b. an open-end mortgage.
c. a purchase money mortgage.
d. a wraparound mortgage.
both a and b.
The purchaser of a new home may protect himself against loss due to structural defects by
a. having the home inspected before purchase.
b. purchasing insurance under the Home Owners Warranty Program.
c. both a and b.
d. neither a nor b.
mortgagor to a mortgagee.
A trustor's relationship to a beneficiary is most nearly the same as a
a. beneficiary to a trustee.
b. mortgagor to a mortgagee.
c. grantor to a grantee.
d. buyer to a seller.
Longer loan terms
The FHA has been instrumental in promoting which of the following advances in the development of mortgage markets?
a. Longer loan terms
b. Higher construction standards
c. Standardized loan application procedures
d. All of the above
transfers title to the purchasers at the fulfillment of the conditions of the mortgage.
A contract for deed on residential property, as originally designed,
a. transfers title to the purchasers at the fulfillment of the conditions of the mortgage.
b. requires the owner to occupy the property.
c. allows transfer of title to the purchaser at t
Church-owned property that can only be used by members of that church.
Which of the following may be exempt from the 1968 Fair Housing Law?
a. Church-owned property that can only be used by members of that church.
b. Single family residences using a real estate broker to sell
c. Multifamily dwellings of 5 or more units
d. Si
both a and b.
The lender is rightly concerned that the collateral remain intact during the loan term. One way to alleviate such fears is through the use of a
a. covenant of insurance.
b. covenant against removal.
c. covenant of further assurance.
d. both a and b.
consumers
Truth in lending laws were created primarily to protect
a. consumers.
b. lenders.
c. mortgagees.
d. beneficiaries.
Negotiating contracts for any and all repairs needed to the property
Which of the following is not a power normally granted to a property manager under the terms of a standard property management agreement?
a. Negotiating rent amounts
b. Negotiating extensions and cancellations of leases
c. Negotiating contracts for any an
refuse to accept the listing on these terms.
A real estate broker was offered a rental listing by a homeowner who stated that he would not rent to a person of certain religious beliefs. The broker should
a. accept the listing and steer persons of that religion to other properties.
b. refuse to accep
both a and b.
The differences between a renter's insurance policy and a standard homeowner's policy include all of the following EXCEPT
a. a renter's policy does not cover damage to the building.
b. a renter's policy does not include liability coverage.
c. a renter's p
25%
Which of the following ratios of monthly payment to monthly income would be preferred by a residential lender?
a. 55%
b. 65%
c. 25%
d. 75%
commercial banks.
One may find financing for a single family dwelling at all of the following EXCEPT
a. mortgage bankers.
b. commercial banks.
c. insurance companies.
d. savings and loans.
the borrower is in default.
If the required monthly mortgage payment does not cover the interest due for that period,
a. negative amortization could result.
b. the lender can call for the entire balance due and payable.
c. an extra payment could be requested by the lender.
d. the bo
rent collection
Concerns facing the typical corporate real estate manager include all of the following EXCEPT
a. choosing financing terms.
b. rent collection.
c. site selection.
d. all of the above are concern faced by corporate real estate managers.
lends to borrowers, services the loans and perhaps sells the instruments to another.
A primary mortgage lender is one who
a. lends to borrowers, services the loans and perhaps sells the instruments to another.
b. lends only for first mortgages and deeds of trust.
c. lends to FNMA, FHLMC and GNMA.
d. pools, insures, guarantees and sells fi
Job stability, income adequacy and credit rating of the borrower
Which of the following do lenders of home loans consider the most important in their analysis of a loan application?
a. Age, sex, race, and marital status of the borrower
b. Location and age of the collateral
c. Ethnic and business balance of collateral's
the lender supplying funds for the purchase of the property
Which of the following is not true? Under a deed of trust on real property, the trustee is
a. the lender supplying funds for the purchase of the property.
b. not always notified of their selection as trustee.
c. empowered to foreclose, upon notice of defa
commercial properties.
The Americans With Disabilities Act deals primarily with
a. all real estate.
b. multi family residences.
c. commercial properties.
d. single family residences.
amortization.
As payments are made, the amount of interest taken from a mortgage loan payment decreases and the amount applied to the principal increases. This is because of
a. variable interest rate.
b. appreciation.
c. amortization.
d. depreciation.
sales price.
In analyzing a mortgage loan application, a lender considers all EXCEPT
a. income adequacy.
b. sales price.
c. credit rating.
d. job stability.
annual percentage rate.
When advertising, a lender must disclose the
a. cost of the title search and title insurance.
b. closing costs.
c. annual percentage rate.
d. cost of appraisal.
steadily increased.
The homeowner has made regular mortgage payments over ten years and the housing values in the neighborhood have steadily risen. The equity has
a. stayed the same.
b. fluctuated and now is less than it was when the house was purchased.
c. steadily increase
is known as steering.
The practice of directing home seekers to particular neighborhoods based on race, color, religion, sex, or national origin
a. constitutes blockbusting.
b. is known as steering.
c. is prohibited by the Civil Rights Act of 1866.
d. all of the above.
Negotiating the sale of the property being managed
Which of the following duties is not normally undertaken by a typical property manager?
a. Representing the owner in court during eviction proceedings
b. Negotiating the sale of the property being managed
c. Generation of reports related to property incom
equity mortgage.
A loan designed to take advantage of principal reductions and increases in home value over time is called a(n)
a. home equity line of credit.
b. equity mortgage.
c. open-end mortgage.
d. all of the above.
inspect their file at a credit bureau.
The Fair Credit Reporting Act gives individuals several rights EXCEPT
a. correct any errors on their report.
b. make explanatory statements to supplement the file.
c. delete any reference to bankruptcy.
d. inspect their file at a credit bureau.
both a and b.
Coverage for additional perils can be obtained by
a. purchasing a separate policy.
b. adding an endorsement to a regular fire insurance policy.
c. both a and b.
d. neither a nor b.
both a and b.
Generally, before a lender will approve a loan, the borrower must
a. sign a statement if the borrower intends to occupy the property.
b. have sufficient funds for the down payment.
c. both a and b.
d. neither a nor b.
existing mortgages are bought, sold and discounted
The secondary mortgage market is an area of activity in which
a. existing mortgages are bought, sold and discounted.
b. second mortgages are made.
c. a borrower may get loans if the primary market cannot accommodate them.
d. foreclosed properties are boug
large commercial buildings.
With regard to real estate loans, life insurance companies tend to favor
a. single family houses.
b. interim construction loans.
c. large commercial buildings.
d. not being involved in real estate.
Commercial banks
Which of the following supplies money directly to borrowers to finance home loans?
a. Mortgage brokers
b. Commercial banks
c. FNMA
d. FHA
FHA
In the event of default and subsequent foreclosure, which borrower is responsible for making good any losses suffered?
a. FHA
b. HUD
c. 90% conventional
d. VA
a subordination clause.
A beneficiary allows a clause in his contract stating that another lender's interest will be allowed to take precedence over his at some later date. This clause is known as
a. a subrogation clause.
b. a rogata clause.
c. hypothecation.
d. a subordination
prepayment privilege.
A borrower who wanted to make a monthly payment larger than that called for by the note could do so if the note contains a
a. prepayment penalty.
b. prepayment privilege.
c. subordination clause.
d. grace period.
grantor.
The funds for a purchase of real property financed by a deed of trust are provided by the
a. trustor.
b. trustee.
c. beneficiary.
d. grantor.
Increase the yield to the lender.
Loan points accomplish which of the following?
a. Increase the yield to the lender.
b. Shorten the repayment time.
c. Allow a VA seller to discount his/her asking price.
d. Allow the borrower to buy down the loan.
loan balance, accrued interest and the accumulated cost of the foreclosure action and sale.
Betty is six months behind on her mortgage payments. Foreclosure by public auction has been ordered. The sale has not been completed. Betty may redeem her property by paying the
a. last six months payments.
b. loan balance, accrued interest and the accumu
participation loan
A loan made at a below-market interest rate in return for a share of the rent or profit above a specified level is known as a
a. blended-rate loan.
b. participation loan.
c. price level adjusted mortgage.
d. income replacement loan.
adequate property damage and liability coverage.
If a property is rented, the landlord should make certain that he has
a. adequate property damage and liability coverage.
b. adequate liability coverage.
c. the renter purchases all insurance.
d. adequate property damage coverage.
lender.
An alienation clause in a mortgage loan is to the advantage of the
a. mortgagor.
b. lender.
c. seller.
d. borrower.
right of redemption.
The right that allows the mortgagor to regain his property following a mortgage foreclosure is known as
a. due on sale.
b. right of redemption.
c. no such right exists.
d. defeasance.
Index rate
What feature in an adjustable rate mortgage protects the borrower against very large monthly payment increases?
a. Adjustment period
b. Index rate
c. Margin
d. Interest rate cap