National Lesson 4

Question 1

Making money made on the spread in interest rates is called ____________________.

Answer 1

arbitrage

Question 2

____________________ is the process by which investors place funds directly rather than infinancial institutions for investment.

Answer 2

disintermediation

Question 3

A(n) ______________________ note has a mortgage attached to it which pledges property as security for the debt.

Answer 3

secured

Question 4

A violation by lending institutions that occurs when rates of interest are charge in excess of the maximum rate allowed by state law is known as ___.

Answer 4

usury

Question 5

A(n) ____________________ is a loan that is secured by two or more properties as collateral.

Answer 5

blanket mortgage

Question 6

To pledge property as security is to ____________________.

Answer 6

hypothecate

Question 7

The ____________________ allows the lender to adjust the interest rate on the loan as was agreed upon at the origination of the loan.

Answer 7

adjustable rate mortgage

Question 8

The title theory states that the borrower grants to the trustee a limited form of title often referred to as ___________________.

Answer 8

naked title

Question 9

The ____________________ is the process that allows the lender, and typically the trustee, to sell the mortgaged property upon default by the borrower.

Answer 9

power of sale

Question 10

The ____________________ gives the borrower the right to redeem the property after the foreclosure has been completed.

Answer 10

statutory right of redemption