Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Principles of Real Estate > Chapter 16 > Flashcards

Chapter 16 Flashcards

1
Q

Clause in a promissory note that permits the lender to demand payment in full of any unpaid principal and any interest due in the event of default

A

Acceleration Clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Private financial institutions organized to accept deposits from individuals and businesses and to loan these funds to all types of borrowers

A

Commercial Bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Traded securities that have commercial mortgages as their collateral and source of cash flow

A

Commercial Mortgage-Backed Securities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The Truth-In-Lending law

A

Consumer Credit Protection Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Mortgage loans not insured or guaranteed by a government agency but that may carry private mortgage insurance

A

Conventional Loans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Credit institution designed to serve a specific industry or community

A

Credit Union

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Calculated by dividing net operating income by debt service (NOI/DS)

A

Debt Coverage Ratio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A process by which a borrower transfers ownership of am mortgaged property to the lender rather than face foreclosure

A

Deed in Lieu of Foreclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A security instrument that conveys title to the property pledged as collateral to a trustee until the loan is repaid

A

Deed of Trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A judgment against a borrower following a foreclosure that permits the lender to recover any shortfall between the sale price and the balance of the loan

A

Deficiency Judgment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A clause in a promissory note that requires the borrower to repay all amounts due immediately upon transferring the property to a new owner

A

Due-on-Sale Clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Act that prohibits discrimination in mortgage lending

A

Equal Credit Opportunity Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Law regulating credit reporting agencies

A

Fair Credit Reporting Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

An agency that was created by the federal government in 1934 to act as an insurance company for private mortgage lenders

A

Federal Housing Administration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

An agency that was created by the federal government in 1938 to buy mortgages from lenders and to serve as a clearing house for secondary mortgage markets. Also known as Fannie Mae

A

Federal National Mortgage Association

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A loan insured against default by the Federal Housing Administration

A

FHA-Insured Loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Law establishing the federal flood insurance program

A

Flood Disaster Protection Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The process of seizing control of the collateral for a loan and using the proceeds from its sale to satisfy a defaulted debt

A

Foreclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Federal Home Loan Mortgage Corporation

A

Freddie Mac

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A government organization as that provides subsidized loans for certain mortgage borrowers. Also known as Ginnie Mae

A

Government National Mortgage Association

21
Q

Organizations such as Fannie Mae and Freddie Mac, which are authorized and supported by the U.S. government to operate a secondary mortgage market for residential loans

A

Government-Sponsored Enterprises

22
Q

The practice of leaving borrowers in possession of their property while repaying a loan with interest

A

Hypothecation

23
Q

A court-ordered sale of the property following default by the mortgagor

A

Judicial Foreclosure

24
Q

A contract that establishes an obligation to transfer title from a seller to a buyer at some future date based on an agreed-upon payment schedule

A

Land Contract

25
A concept adopted by some states that recognizes that the mortgagee must foreclose on the property through a court action to acquire possession in the event of default
Lien Theory
26
The process of creating a new loan agreement between a borrower and a lender
Loan Origination
27
The ratio obtained by dividing the loan amount by an estimate of property value
Loan-to-Value Ratio
28
A contract by which real property is pledged as security for a loan
Mortgage
29
Securities issued by mortgage holders to investors who wish to invest indirectly in the mortgage market
Mortgage-Backed Securities
30
Firms that borrow money from commercial banks to originate new loans to mortgage borrowers
Mortgage Bankers
31
Firms that act as brokers between loan applications and lenders
Mortgage Brokers
32
The percentage of a borrower's gross monthly income that is required to meet housing expenses
Mortgage Debt Ratio
33
A situation in which the security instrument grants the lender power of sale should the borrower default
Nonjudicial Foreclosure
34
A clause in a promissory note that determines the borrower's right to prepay any or all of the principal before it is due
Prepayment Clause
35
Transactions that occur between a borrower and a lender
Primary Mortgage Market
36
Nongovernment insurance that provides protection for the lender against the borrower's default
Private Mortgage Insurance
37
A written promise to pay money owed
Promissory Note
38
Law regulating the closing procedures in a real estate loan
Real Estate Settlement Procedures Act
39
Firms that receive deposits from savers and loaning those funds to residential borrowers
Savings Institutions
40
Transactions involving mortgages that occur between investors
Secondary Mortgage Market
41
A loan from which a specific item has been pledged as collateral
Secured Loan
42
A situation in which the lender is entitled to immediate ownership of the property should the borrower default
Strict Foreclosure
43
A type of loan made to borrowers with less than stellar credit histories or other issues that prevent the borrower from obtaining the most favorable loan terms
Subprime Mortgage Loans
44
A concept adopted by some states that recognizes that the mortgagee has the right to immediate possession of mortgaged property in the event of default
Title Theory
45
The percentage of a borrower's gross monthly income required to meet monthly contractual expenses
Total Debt Ratio
46
Process of evaluating the risk of a loan applicant and the property being pledged in order to make a decision regarding the loan application
Underwriting
47
A loan for which no specific item has been pledged as collateral
Unsecured Loan
48
The system of financing mortgages in the United States
U.S. Housing Finance System
49
A loan in the which the lender is protected from the borrower's default by a guarantee of repayment from the Department of Veterans Affairs
VA-Guaranteed Loan

Principles of Real Estate (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions