Chapter 5 & 6

Question 1

unsecured loan

Answer 1

Note with no related collateral

Question 2

Saving and loan association

Answer 2

Primary Function to promote thrift & homeownership

Question 3

Easement by necessity

Answer 3

court of law / granted easement appurtenant/ because of the necessity of the easement

Question 4

Institutional lender

Answer 4

whose loan and lending practices are regulated by Law.

Question 5

Debenture

Answer 5

Unsecured bond, issued against company’s general assets. like treasury bonds and bills

Question 6

Due-On-Sale Clause

Answer 6

Acceleration clause, call clause, non assumption clause, alienation clause
Borrower pay the entire mortgage debt when the property is sold.

Question 7

Another type of REIT ( Equity Trust )

Answer 7

Investor get their capital gain from rents and capital gain on selling the properties. / when investors are participating in large properties for more profitable income producing properties.

Question 8

USURY LAW

Answer 8

LAW that regulate the MAX amount of INTEREST an entity can charge on various loans.

Question 9

General lien

Answer 9

apply to all real and personal properties

Question 10

promissory note

Answer 10

legal evidence of the incurred debt on the document is signed by the borrower

Question 11

Trustor

Answer 11

the borrower in a deed of trust

Question 12

TDI

Answer 12

Texas department of insurance, regulate the INSURANCE INDUSTRY, while protecting the people and the business swerved by insurance

Question 13

NAMB

Answer 13

national association of mortgage brokers, TRADE organization for mortgage brokers