Financing and Settlement Exam 1 Flashcards
1
Q
Person who pledges property in exchange for a loan is the
A
Mortgagor
2
Q
When mortgage is in default, authority to sell is held by the
A
Court
3
Q
When note secured by trust deed goes into default, authority to sell is held by the
A
Trustee
4
Q
Loan interest is paid in…
A
arrears
5
Q
From 1 discount point…a lender would benefit…
A
1/8 percent
6
Q
Up front lender fees, usually a percent of the loan =
A
Origination fee
7
Q
How much extra money can be held in escrow account?
A
60 days excess funds (two months)
8
Q
Mortgage payment: order of obligations
A
- Escrow requirements
- Interest
- Principal
- Late charges
9
Q
Loan to value amount that triggers lenders to implement mortgage insurance
A
80%
10
Q
Due on Sale clause = __________ Clause
A
Alienation
11
Q
Default in trust deed activates ___________ clause
A
Redemption
