RE-9

Question 1

Any loan made by lenders with governmental guarantees

Answer 1

conventional loan

Question 2

Selling a note for less than the face amount or the current balance.

Answer 2

discounting a note

Question 3

The lender under a mortgage.

Answer 3

mortgagee

Question 4

The interest held by the trustor under a trust deed.

Answer 4

equitable title

Question 5

Any loan made at the time of a sale, as part of that sale.

Answer 5

purchase-money loan

Question 6

Recorded trust deed containing details that apply to later loan documents.

Answer 6

fictitious trust deed

Question 7

Loan in which the interest rate is renegotiated periodically.

Answer 7

renegotiable rate mortgage

Question 8

The permanent loan that pays off a construction loan.

Answer 8

takeout loan

Question 9

The interest rate stated in the note.

Answer 9

nominal or named rate

Question 10

The seller under a contract of sale (land contract).

Answer 10

vendor

Question 11

A clause in a loan document describing certain events that would cause the entire loan to be due.

Answer 11

acceleration clause

Question 12

The evidence of the debt.

Answer 12

promissory note

Question 13

A clause in a loan document that would allow the lender to call the entire loan due upon the sale of the property

Answer 13

alienation clause

Question 14

A note whose interest rate is tied to a movable economic index.

Answer 14

adjustable-rate mortgage

Question 15

A letter that promises to deliver a takeout loan in the future.

Answer 15

standby commitment

Question 16

The liquidation of a financial obligation.

Answer 16

amortization

Question 17

The borrower under a mortgage.

Answer 17

mortgagor

Question 18

The lender under a deed of trust.

Answer 18

beneficiary

Question 19

Something of value given as security for a debt.

Answer 19

collateral

Question 20

A security instrument that conveys naked legal title of real property.

Answer 20

trust deed