This is a legal document by which a borrower pledges certain real property or collateral as guarantee for the repayment of a loan...?Deed of trustWhich of the following establishes personal liability for the payment of a debt...?Promissory noteMark recently obtained a loan from a local bank to purchase a new house. Under the deed of trust system, Mark is the...?TrustorAndrew obtained a loan from a local bank to purchase a new house. Under the deed of trust system, Andrew's bank is the...?BeneficiaryHow many parties are included in a deed of trust...?3An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation is known as a...?MortgageCredit card debt is considered...?Unsecured debtThe standard provisions of a mortgage incudes which of the following...?Recording information, note of attachment, granting clauseThe buyer is also known as theVendeeThe seller is also known as theVendorA contract for deed is also known as aLand contractJunior financing loans are also referred to as a...?Second mortgageA home equity line of credit is typically ..............to a first mortgage?SeubordinateThe charge payable to a lender by a borrower under the terms of the loan agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity is known as a...?Prepayment penaltyAn acceleration clause granting the lender the right to demand full payment of the mortgage upon a sale of the property is known as a...?Due on sale clauseThis refers to a stipulation that upon the payment of a specific sum of money to the holder of a trust deed or mortgage, the lien of the instrument as to a specifically described lot or area shall be removed from the blanket lien on the whole area involved...?Release clauseThis is a charge paid for the use of money, expressed as a percentage per month, or year, of the sum borrowed...?Interest rateThis is a straight, non-amortizing loan in which the lender receives only interest during the term of the loan and principal is repaid in a lump sum at maturity...?Interest only loanThis is an installment payment on a promissory note, usually the final one for discharging the debt, which is significantly larger than the other installment payments provided under the terms of the promissory note...?Balloon pmtThe liquidation of a financial obligation on an installment basis is known as...?AmortizationThis occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due...?Negative amortizationA bank lends a $10,000 loan to a borrower with a term of only one year with 5% interest. Assuming simple interest is used, how much will the borrower pay in interest over the term of the loan...?500 dollarsWhich of the following is used to calculate the amount of simple interest paid on a loan...?I = PrtIn order to determine the amount paid in simple interest, you must multiply the interest rate, by time, by...?Principal loan amtA loan that is made without governmental underwriting is known as a...?Conventional loanLoans processed on uniform loan forms according to FNMA/FHLMC guidelines are known as...?Conforming loansA loan that does not meet the guidelines of Government Sponsored Enterprises is known as a/an...?Non-conforming loanA loan where the interest rate does not fluctuate during the term of the loan is known as a/an...?Fixed interest rate loanAd valorem means...?According to valueA form of property insurance designed to protect an individual's home against damages to the house itself, or to possessions in the home, is known as...?Homeowners insuranceAn adjustable rate mortgage includes an interest rate cap and/or a...?Payment capThis type of loan begins with low monthly payments, which gradually increase over a specified time frame...?Graduated payment mortgageMark is in the process of obtaining a conventional loan; however, he is only making a down payment of 10% of the purchase price. What must Mark obtain as a result...?Private mortgage insurancePrivate mortgage insurance primarily benefits the...?LenderWhat is the maximum housing ratio for HAMP...?31%Which of the following helps homeowners, who were previously subjected to predatory lending, refinance their existing home loans...?HARPThis is a financing device whereby a lender assumes payments on existing trust deeds of a borrower and takes from the borrower a junior trust deed with a face value in an amount equal to the amount outstanding on the old trust deeds and the additional amount of money borrowed...?Wrap around mortgageWhich of the following mortgage types are commonly used in construction financing...?
ARMPackage mortgageThis type of loan may is primarily used to purchase mobile homes...?Manufactured housingWhich of the following was created under the National Housing Act of 1934...?Fed Housing AdminVA loans were created under the...?Servicements Readjustment ActA mortgage loan in which payments are insured by the Federal Housing Administration is known as a/an...?FHA Insured loanA one-time premium paid on FHA-insured loans at the closing, which is pursuant to the purchase is known as...?Mortgage Insurance premiumA duplex house includes how many dwelling units...?2An individual at a lending institution who determines credit worthiness in order to qualify an applicant for a loan is known as a/an...?UnderwriterWhen a borrower applies for a loan, they typically fill out which of the following...?Uniform Residential Loan ApplicationThe upfront fee for MIP is what percent of the loan amount...?1.75What is the maximum back-end debt ratio for an FHA insured loan...?43What is the maximum front-end debt ratio for an FHA insured loan...?31Which of the following must be resolved by the borrower before an underwriter can process a loan...?Any outstanding judgementsWhich of the following parties is allowed to work with a lender's underwriter in an effort to get the borrower approved...?No party is allowed to work directly with the underwtiterWhen a borrower applies for a loan, they typically fill out which of the following...?Uniform Residential Loan ApplicationThe taking of a title to property by a grantee wherein the grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property is known as...?Assumption of mortgageA Uniform Residential Loan Application gets filled out by which of the following...?The borrowerWhat is the minimum down payment required on an FHA insured loan for a residential investment property...?20According to FHA guidelines, the seller can contribute up to ...........of the sales price towards the buyer's closing costs?6Loans that were originated prior to ........are generally assumable?1989VA loans allow up to 4% in ................towards the buyer?Seller concessionsWhat is the maximum front-end debt-to-income ratio on an FHA loan...?31An appraisal determines an estimate of...?Fair market valueResidential properties are typically valued using which appraisal method...?Sales comparison approachUnique properties are typically valued using which appraisal method...?Cost approachA buyer should receive a/an .............prior to closing on a property?Marketable titleA lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property is known as a...?Mechanics lienWhich of the following is a governmental loan modification programHAMPThe mortgagor is the...?BorrowerIn a ..............., the court establishes a specific date for the defaulted amount to be paid?Strict foreclosureIf a property is sold at a foreclosure auction for an amount less than the amount of outstanding debt on the property, the lender may file for a...?Deficiency judgement
