Chapter 11 Vocabulary Flashcards
Creditor:
A. A person who receives services given on behalf of and for the benefit of a client.
B. As defined by Regulation Z, a party who arranges for or extends credit more than 25 times a year or more than five times a year if the transaction is secured by a dwelling.
C. That one person on the team who did none of the work but took all the credit.
D:A borrower.
B. As defined by Regulation Z, a party who arranges for or extends credit more than 25 times a year or more than five times a year if the transaction is secured by a dwelling.
Loan-to-value ratio:
A. An employment contract in which the firm receives, as commission, all excess monies over and above the minimum sales price agreed on by the firm and seller.
B. The price at which a property would sell on the open market to a buyer who is not under duress, not related to the seller, is well informed about the property, and who has been found within a reasonable amount of time.
C. The relationship between the loan amount and the selling price.
D. The specified date in the contract by which agreed-upon acts must be completely performed or the nonperforming party will be in breach of the contract.
C. The relationship between the loan amount and the selling price.
Right of redemption:
A. The period granted to a foreclosed property owner during which the borrower can pay the lender in full, stop the foreclosure proceeding and keep possession of the property.
B. The method by which the court gains custody of a deed to assure that the collateral will not be sold without satisfaction of a court-ordered judgment.
C. The rights that govern lakes and running waters, such as rivers and streams.
D. A court order instructing the officer of the court to carry out the decision of the court.
A. The period granted to a foreclosed property owner during which the borrower can pay the lender in full, stop the foreclosure proceeding and keep possession of the property.
Lien theory:
A. A buyer is the owner of the property even though the lender has not received payment in full.
B. A legal right to place a claim or encumbrance on property or have it sold for payment of a debt.
C. A study of a property by a real estate agent or appraiser to establish a likely selling price of the property.
D. A classification of property ownership recognized in Wisconsin.
A. States that use lien theory view the buyer as the owner of the property even though the lender has not received payment in full. The mortgage creates a lien on the real estate, which is used as collateral for a loan. Wisconsin is a lien theory state.
Certificate of eligibility:
A. An employment contract in which the firm receives as commission all excess monies over and above the minimum sales price agreed on by firm and seller.
B. A report used by a seller to disclose to a buyer any known adverse facts.
C. A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.
D. The document provided by the VA to a veteran that establishes the maximum guarantee to which the veteran is entitled.
D. The document provided by the VA to a veteran that establishes the maximum guarantee to which the veteran is entitled.
Mortgagee:
A. Lender.
B. One who is authorized by a principal to perform one particular act or transaction.
C. A firm that is engaged by another firm to provide brokerage services in a transaction but that is not associated with the firm.
D. Borrower.
A. Lender
Truth in Lending Act:
A. A federal law designed to eliminate discrimination against individuals with disabilities by mandating equal access to jobs, public accommodations, government services, public transportation and telecommunications.
B. A relationship in which one person acts for or represents another.
C. A federal law that governs lending including the terms used to advertise consumer credit.
D. A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.
C. A federal law that governs lending including the terms used to advertise consumer credit.
Real Estate Settlement and Procedures Act (RESPA):
A. The rights that govern lakes and running waters, such as rivers and streams.
B. A loan program to provide older homeowners with monthly payments by permitting the homeowner to withdraw equity from the home.
C. A law enforced by HUD to ensure that borrowers in mortgage loan transactions have knowledge of all settlement costs.
D. A report used by a seller to disclose to a buyer any known adverse facts.
C. A law enforced by HUD to ensure that borrowers in mortgage loan transactions have knowledge of all settlement costs.
Balloon loan:
A. A financing instrument with terms that are transferable to another party.
B. A loan originated with a short repayment term of three to seven years while being fully amortized for 30 years.
C. A loan to fix a property defect that is more psychological than material.
D. A loan for a hot air balloon included with the purchase of property.
B. A loan originated with a short repayment term of three to seven years while being fully amortized for 30 years.
Vendor:
A. An area where water is at, near or above the land surface long enough to be capable of supporting aquatic or hydrophytic vegetation.
B. A name filed with the department under which a firm provides services.
C. The seller of realty under a land contract.
D. The purchaser of realty under a land contract.
C. The seller of realty under a land contract.
Mortgagor:
A. Borrower.
B. One who for another person, and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase or rental of or the granting or acceptance of an option to sell, exchange, purchase or rent and interest or estate in real estate; one who shows real estate or a business or its inventory; or one who promotes the sale, exchange, purchase, option, rental or leasing of a real estate, a timeshare, or a business or its goodwill, inventory or fixtures.
C. One who is placed in a position of trust and confidence, normally responsible for the money or property of another.
D. Lender.
A. Borrower
Defeasance clause:
A. A relationship between a firm and two or more of the firm’s clients where the clients are parties in the same transaction.
B. A provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.
C. A clause within a mortgage that legally binds the lender to release the lien from the title once the mortgage has been satisfied.
D. An instrument by which some estate or interest in land is transferred from one person to another, such as a deed, mortgage, lease or contract for sale.
C. A clause within a mortgage that legally binds the lender to release the lien from the title once the mortgage has been satisfied.
Promissory note:
A. An unconditional promise of one person to pay a certain sum of money to another at a future specified time.
B. Formal judicial proceedings to prove or confirm the validity of a will, to collect the assets of a decedent’s estate, to pay debts and taxes, and to determine the persons to whom the remainder of the estate is to pass.
C. A deed that conveys title to real property without making warranties or representations regarding the quality of the deed.
D. A certificate issued by the mortgagee when a mortgage is paid in full.
A. An unconditional promise of one person to pay a certain sum of money to another at a future specified time.
Triggering terms:
A. Used to change terms of a contract.
B. An estimate or opinion of value based on supportable evidence and approved methods.
C. Advertising phrases that may not be used unless all of the terms of the loan are disclosed in the advertisement.
D. The nonjudicial submission of a controversy to third parties for a determination in a manner provided by agreement or by law.
C. Advertising phrases that may not be used unless all of the terms of the loan are disclosed in the advertisement.
Acceleration clause:
A. A clause within a mortgage permitting a lender to accelerate the amount due upon default and declare the entire balance due.
B. Creates an enforceable contract between parties.
C. When an amendment is used to change terms of a contract.
D. A body of law based on usage, general acceptance and custom as manifested in decrees and judgments of the court’s case law.
A. A clause within a mortgage permitting a lender to accelerate the amount due upon default and declare the entire balance due.
Assumable loan:
A. A financing instrument with terms that are transferable to another party.
B. A legal document used to transfer ownership of personal property.
C. A form used to terminate a contract for sale or agency agreement when the parties mutually agree to terminate their original agreement.
D. Prepared by an appraiser for property financed with a Department of Veterans Affairs (VA) loan.
A. A financing instrument with terms that are transferable to another party.
Deed in lieu of foreclosure:
A. When a borrower deeds the property to the lender in full or partial payment of the mortgage debt.
B. The right to obtain absolute ownership of a property when legal title is held in another’s name.
C. A legal process used when a borrower defaults on a debt.
D. Clauses in a deed that limit the future use of the property, such as the type of structure that can be erected or the purpose for which a structure may be erected.
A. When a borrower deeds the property to the lender in full or partial payment of the mortgage debt. The title to be transferred must be free of all encumbrances. This is also referred to as a “friendly foreclosure.”
Rural housing loan:
A. A specific, involuntary lien placed against real property for securing a debt.
B. A loan program under the Department of Agriculture designed to meet the needs of low-income and moderate-income rural residents to purchase, construct, repair or relocate a dwelling and related facilities.
C. An insurance policy written to insure a portion of a mortgage amount for a borrower.
D. The dollar amount charged by a lender to cover the time and expenses incurred to arrange a loan.
B. A loan program under the Department of Agriculture designed to meet the needs of low-income and moderate-income rural residents to purchase, construct, repair or relocate a dwelling and related facilities.
