Chapter 9 Flashcards
The element of an adjustable interest rate that s the “moving part” is the?
Index
Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage?
Prepayment penalty
A lender may reserve the right to require prepayment of a loan at any time they see fit through a(an)?
Demand Clause
When a buyer of a property with an existing mortgage loan acquires the property without signing the note for an existing loan the buyer is acquiring the property?
Subject to the mortgage
Which of these points in a mortgage loan would be addressed in the mortgage (Possibly the note as well)?
Escrows
To finance the property where either the borrower, the property owner, or both fail to qualify for the standard mortgage financing, a common non-mortgage solution is through a?
Contract for deed
Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of the following except?
Accelerate the debt
If the lender in a standard first mortgage wishes to foreclose cost effectively, it is crucial to have which clause in the mortgage?
Acceleration clause
A common risk that frequently interferes with a lender’s efforts to work out a defaulted loan through either non-foreclosure means or foreclosure is?
Bankruptcy
The characteristics of a borrower that can be considered by a lender in a mortgage loan appreciation are limited by the?
Equal Credit Opportunity Act (ECOA)
The Real Estate Settlements and Procedures Act (RESPA) does which of these?
All of the above
Foreclosure tends to be quickest in states that have?
Power of sale
From a home mortgage lender’s perspective, which statement is true about the effect of bankruptcy upon foreclosure?
Chapter 7 bankruptcy is the most “lender friendly” form.
The most internationally oriented index rate for adjustable rate mortgages is?
LIBOR rate
A type of loan that has grown in volume in recent years which has raised oncersn about predatory lending practices is the?
Sub-prim mortgage
A partially ammortizing loan always will have?
A ballon payment
Which of these statements is true about mortgage loans for income producing real estate?
All of the above
With what type of loan security arrangement is the deed held by a neutral party and returned upon payment of the mortgage in full?
Deed of trust
The Truth in Lending Act (TILA) gives a home mortgage borrower how long to rescind a mortgage loan?
3 days`
Which statement is correct about the right of prepayment of a home mortgage loan?
Most home mortgage loans have the right of prepayment without charge, but bot all, and the borrower should check the loan carefully
