Finance

Question 1

Trustor

Answer 1

The borrower under the deed of trust

Question 2

Vendor

Answer 2

The seller under the contract of sale ( LAND contract)

Question 3

Grace period duration

Answer 3

10-15 days

Question 4

Legal Title

Answer 4

Title that is complete and perfect in regard to right of ownership / can be held by a trustee..

Question 5

Reconveyance Deed

Answer 5

Trustee conveys back the property to the borrower (trustor) upon full payment in the full of debt secured by the trust deed.

Question 6

Security agreement

Answer 6

A device to secure a loan on a personal property

Question 7

Assignment of Rent

Answer 7

Agreement between property owner and the holder of the trust deed or lender. Holder receive the security the right to collect rent from tenant of the property in the event of the default by the borrower.

Question 8

Subject to clause

Answer 8

1. Buyer takes over the existing loan
2. Assume no personal liability for the loan

Question 9

Purchase money loan

Answer 9

A trust created as evidence of a debt at the time of the sale of the property.

Question 10

Equity of redemption

Answer 10

Before a foreclosure, the right of the debtor, to reclaim the property that have been given up due to mortgage default .

Question 11

APR

Answer 11

The relationship of the total finance charge to the total amount to be financed as required under the Truth in Lending Act.

APR is the annual cost of a loan to a borrower — including fees

Question 12

rollover mortgage

Answer 12

A loan that allows the rewriting of a new loan at the termination of the prior loan.

Question 13

TPO

Answer 13

Third party originator
person who takes application from borrowers
does NOT fund loans or underwrite

Question 14

Intermediation

Answer 14

Transferring capital from those who invest funds to those who wish to borrow.

Question 15

Regulation Z => Truth in lending ACT

Answer 15

FEDERAL Law => require borrower to be informed about the cost of the borrowing money.

Question 16

Beneficiary

Answer 16

It is the lender under the deed of trust.

Question 17

Alienation clause

Answer 17

A clause in the loan document that allows the lender to call the entire loan due upon the sale of the property. / A type of ACCELERATION CLAUSE

Question 18

Equal Credit opportunity ACT

Answer 18

A federal Law that requires lenders to assure that credit available with fairness, impartiality, without discrimination

Question 19

pledge

Answer 19

The transfer of property to a lender as a security for repayment of the debt.

Question 20

Blanket loan

Answer 20

A loan that is secured by several properties

Question 21

Margin

Answer 21

ARM/ a fixed percentage added to an index to determine the fully indexed of interest rate of an adjustable rate mortgage.

Question 22

Holder in Due course

Answer 22

who hold the negotiable instrument in the ordinary course of the business before it is due . in food faith and for value. With NO knowledge it has been previously dishonored..with No notice of defects.

Question 23

Service member civil relief ACT

Answer 23

A federal law designated to protect persons in military service from loss of property when their ability to make the payment has been affected by their entering military service.

Question 24

Trustee’s DEED

Answer 24

A deed given to a buyer of real property at a trustee’s sale.

Question 25

Vendee

Answer 25

A buyer under the contract of sale. ( Land Contract )

Question 26

REINSTATE

Answer 26

Bring current and restore

Question 27

MLO => Mortgage loan originator

Answer 27

A person who take residential mortgage loan application , or negotiate the terms of the residential mortgage loan for compensation.

Question 28

Hard Money Loan

Answer 28

The evidence of the debt given in exchange for cash.

Question 29

Deregulation

Answer 29

A process by financial institutions that have been restrained in their lending activities by law are allowed to compete freely.

Question 30

Swing loan

Answer 30

Short term loan, / On the strength of the equity from the property the purchaser is now selling.

Question 31

Usury

Answer 31

The act of charging the rate of interest in excess of that is permitted by law.

Question 32

Financing Statement

Answer 32

Written notice filled with the county recorder by the creditor.
Establish the creditors interest in the personal property which is the security for the debt.

Question 33

Hypothication

Answer 33

to give real property as a security for a debt without giving up possession

Question 34

mill levy

Answer 34

is the “tax rate” that is applied to the assessed value of a property. One mill is one dollar per $1,000 dollars of assessed value.

Question 35

“naked title” or “bare legal title”

Answer 35

used for the title held by the trustee. In this case, the trustee has control over the property, but the courts recognize that the rights to the property belong to the beneficiaries, who hold equitable title

Question 36

How a Property Tax Equalization Factor Works in Real Estate

Answer 36

the percentage that the property is assessed at compared to 100% market value.

Question 37

A point, line, Surface from which elevations are measured is known as

Answer 37

Datum

Question 38

A section

Answer 38

one square mile