Chapter 12: Real Estate Finance (FITB)

Question 1

The instrument that contains the amount of the loan, interest rate, payment provisions and other terms of the loan is the ____ ____.

Answer 1

promissory note

Question 2

A mortgage is a ____ ____ ____.

Answer 2

pledge of security

Question 3

The clause in a mortgage that protects the borrower’s interest and requires the lender to acknowledge performance by the borrower is the ____ clause.

Answer 3

defeasance

Question 4

The clause that allows a parcel of property to be sold free and clear of a blanket mortgage is the ____ clause.

Answer 4

release

Question 5

A mortgage that secures more than one parcel of property as security for a loan is a ____ mortgage.

Answer 5

blanket

Question 6

If a borrower was in default, and the lender wished to call the entire balance of the loan due and payable, the mortgage would have to contain an ____ clause.

Answer 6

acceleration

Question 7

If a buyer were to take over the balance of an existing mortgage in such a way that the seller remained solely responsible for a deficiency judgment, the property was sold ____ ____ ____ ____.

Answer 7

subject to the mortgage

Question 8

When a lender allows a new borrower to take responsibility for a mortgage and note, and release the original borrower from liability for the mortgage and note, the process is called ____ ____ ____.

Answer 8

assumption with novation

Question 9

When a lender is requested by a borrow to verify the outstanding balance of a loan, the lender would give the borrower an ____ ____.

Answer 9

estoppel letter

Question 10

The percentage figure borrowers must be provided with that includes all costs associated with a loan is referred to as the ____.

Answer 10

APR (Annual Percentage Rate)

Question 11

A ____ ____ is a personal debt based on the promissory note.

Answer 11

deficiency judgment

Question 12

The right of a borrower to cure a default prior to foreclosure is called the ____ ____ ____.

Answer 12

equity of redemption

Question 13

Foreclosure is ____ of the mortgage.

Answer 13

enforcement

Question 14

The Real Estate Settlement and Procedures Act requires a lender to provide a borrower with a ____ ____ ____, and an ____ ____, and that the closing agent use the ____ ____ ____.

Answer 14

good faith estimate, information booklet, Uniform Settlement Statement

Question 15

When refinancing, the Consumer Credit Protection Act requires that a consumer be given a ____ day period to rescind the loan.

Answer 15

3 business days