Nat 7

Question 1

Buyer does not originate a new loan but takes over payments and assumes personal liability on an existing loan

Answer 1

Loan assumption

Question 2

The process of the lender rewriting the terms of an existing loan, substituting the buyers as the debtor and releasing the seller from liability

Answer 2

Novation

Question 3

(Assumption letter) given by the lender to the buyer to verify loan balance and terms when the buyer takes over payments on an existing loan

Answer 3

Reduction certificate

Question 4

Originates loans working directly with the borrower. Also called financial intermediaries

Answer 4

Primary mortgage market

Question 5

Marketplace where loans originated in the primary market are sold to other lenders or investors

Answer 5

Secondary mortgage market

Question 6

The process of selling a loan to another lender

Answer 6

Assignment

Question 7

A certificate executed by a borrower setting forth the exact unpaid balance and rate of interest

Answer 7

Estoppel certificate