Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
84 Cards in this Set
- Front
- Back
|
An encumbrance that affects the use of property would be ? a. lien b. deed restriction c. property tax lien |
deed restriction |
|
|
A loan you obtain in installments and pay off at maturity is called: a. amoriztized b. varuable c. constrution |
construction |
|
|
if an owner puts up a fence that violates deed restrictions, what remedy would the association take? |
Take actin to court |
|
|
When a simple assumption is done who is responsible for the loan? |
Both buyer and seller |
|
|
When a person pays the entire principal balance at the end of a loan period, the loan would be called: |
A term loan |
|
|
If a subordination clause is in a mortgage or deed of trust, what parties would it benefit? |
The trustor and mortagor |
|
|
In order for a junior lien to have priority, the primary lien holder would sign which of the following? a. subordination b. defeasment c. subrogation |
subordination |
|
|
Who signs the estoppel certificate? |
The borrower and lessee |
|
|
When a mortgage is created, it also must have what? |
A note |
|
|
A surety bond is most likely used when? |
A contractor fails to complete a job |
|
|
A defeasance clause would be found in what? a. mortgage b. deed restriction c. will d. life estate |
A mortgage |
|
|
A loan that is structured so additional funds could be paid out on future calls is called what? |
open - end loan |
|
|
when the trust deed has been paid in full, the defeasance claises states that the full deed of reconveyance be issued by who?? |
The trustee |
|
|
What is not an encumbrance??? A. Mechanics lien B. Deed of trust C. Decleration of homestead |
Decleration of Homestead |
|
|
what is the purpose of an estoppel certificate? |
It states the balance of the rents or mortgage due |
|
|
A due on sale clause is |
Non-assumability clause |
|
|
A term loan is: A. principal and interest B. principal only C.Interest only |
Interest Only |
|
|
Which may be assigned?? A. Quit Claim Deed B. Trust Deed C. Gift Deed D. Warranty Deed |
Trust deed |
|
|
Which is true regarding loan term loans? A. Higher total costs B. Lower total costs C. Low interest rate |
Higher total costs |
|
|
Which instrument doesn't convey title? |
A lease |
|
|
A mortgage is: A.Security for a note B. Given by the mortgage C Evidence of debt |
Security for a note |
|
|
Mortgages would contain: A. Acceleration Clause B. Subordination Clause C. Subrogation Clause |
Subrogation Clause |
|
|
Would Lease for years be considered a lien on a property? |
No. |
|
|
What is the purpose of a trustee? |
Foreclose in a deed of trust |
|
|
When a loan is secured by a deed of trust, who holds the deed of trust document? |
The beneficiary |
|
|
What is not a security instrument? A. Note B. Deed of trust C. Agreement for sale |
Note
|
|
|
When the lender agrees to change lien positions it is called? |
Subordination |
|
|
When a note and deed of trust are paid in full, then lender is required to issue a release of lien. What is it called? |
Defeasance |
|
|
Amortizing a loan over 30 years that is to be paid in seven years is called what? |
Balloon payment |
|
|
which relates to encroachments? A. incorpreal right B. Physical in characteristic C. Owners permission |
Physical in characteristic |
|
|
Which is a specific lien regarding real estate? A. Special assessment B. Judgement C. IRS lien |
Special assessment |
|
|
The document used to verify the mortgage assumption is called what? |
Reduction certificate |
|
|
A mortgage that contains release clauses is what ? |
Blanket loan |
|
|
The evidence of a debt and the promise to pay it is called what? |
A note |
|
|
What is it called when the real property is given as security but still retained by the mortgagor? |
Hypothecate |
|
|
when a loan is called all due and payable the loan has an : A. Accelerated clause B. Alienation |
Alienation |
|
|
A property is sold but the legal title remains in the seller name. What type of instrument was used to complete the sale? A. Mortgage B. Option C. Agreement for sale D. Deed |
Agreement of sale
|
|
|
which would not be concidered a trigger clause per Reg. Z? A. Cash only sale B. 50000 down payment C. 7 percent interest |
Cash only sale |
|
|
What regulation places a limit on fees that a lender can charge in escrow for impound accounts? |
Reg. Z |
|
|
When a note and security instrument are in one document; this is best described as what? |
Land Contract |
|
|
Which is NOT concidered in the secondary market? A. FNMA B. Local Bank C. GNMA |
Local bank |
|
|
When a wraparound loan is created, who is responsible for the underlying loans? |
The Vendor |
|
|
How are the rights of ownership under a land contract transffered to a new buyer? |
By assignment |
|
|
A non dissturbance clause benefits who? |
The lessee |
|
|
Low income loans are usually purchased by who? |
GNMA |
|
|
Which is not in the secondary market? A. GNMA B. FHA C. FNMA |
FHA |
|
|
The right of the mortgagor to regain title is called what? |
Redemption |
|
|
Which requires the lender to show the true interest rate? A. HUD B. Reg z C.PMI |
Reg Z |
|
|
What would RESPA not cover? |
Loan assumptions |
|
|
According to reg z and respa, what is NOT prorated in escrow? |
Title insurance |
|
|
Reg Z would disclose what? |
Loan origination fees and points |
|
|
When a mortgage banker borrows on existing loans held by the banker, it is called what? |
Estoppel |
|
|
When a loan is sold and discounted, which partie discounts the loan? |
Mortgagee |
|
|
A pass through certificate, which is an investment the buyer has would most likely be what? |
Ginnie Mae security |
|
|
RESPA would provide for all the following except which? A. Good faith estimate B. HUD booklet C. A limit on loan points |
A limit on Loan points |
|
|
When a deed in lieu of foreclosure is given to a lender, what is true? A. Subsequent liens are paid off B. Time and cost are less C. Redemption rights remain the same |
Time and cost are less |
|
|
What is the max tax reserves a lender may demand according to RESPA? |
2 months |
|
|
What would not be subject to Reg Z? |
A buisness loan |
|
|
When the buyer of a land is in default and the seller does nothing a decides to foreclose later, he is exersizing his right of what? |
Forebearence |
|
|
Which would not be covered by Reg. z? A. Loans with twelve installments B. Home loan in excess of 207,000 c. Non real estate loans up to 25k D. Seller carryback financing |
Seller carryback financing |
|
|
What agency oversees when a lender gives a good faith estimate a sprescribed by RESPA? |
HUD |
|
|
why is the APR higher than advertised interest rate? |
APR includes all other costs to obtain the loan |
|
|
When a commercial building is sold in a foreclosure 100,000 less than the balance due to the lender, what can the lender do? |
He can obtain a deficiency judgement against the borrower |
|
|
What agency guarentees loans?? |
GNMA |
|
|
A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise? |
Acceleration |
|
|
A loan which is subordinate to other loans but includes the amount of the other loans is called what? |
A Wrap around Loan |
|
|
What does a seasoned loan refer too? |
Good payment history |
|
|
What cost would not be apart of Reg. z A. service charges B. attorney fees C. Discounting points D. title costs |
Attorney Fees |
|
|
RESPA mandates the lender to provide all of the following to the borrower EXCEPT: A. Estimated closing costs in three days B. Three day right of recission C.Good faith estimate |
Three day right of recission |
|
|
Which would not violate RESPA? A. Giving the buyer the names of lenders B. Accepting kickback on a loan C. Requiring that buyer and seller use a certain escrow/title company |
Giving the names of lenders |
|
|
What would discourage a buyer to take a bank wrap around mortgage? |
Sellers loan had an alienation clause |
|
|
A lender is required to give a HUD book and good faith estimate under what?? |
RESPA |
|
|
APR is regulated by who? |
Reg z |
|
|
A property has both a first and second lien. Both are in default. What could happen? |
The second would be terminated if the first goes through a successful judicial foreclosure |
|
|
What is FNMA? |
A government sponsored agency? |
|
|
Which would not apply to a mortgage? A. Note B. Deed recordation C. Alienation clause |
Deed recordation |
|
|
What applies to the Federal NationalMortgage association? |
Government related agencies |
|
|
After a mortgage foreclosure, if the sale amount was insufficient to cover the debt; a lender may ask for what? |
A deficiency Judgement |
|
|
What is it called when the federal reserve loans money to commercial banks? |
Discount Rate |
|
|
After a trustees sale where does the excess proceeds go to? |
The trustor |
|
|
A month payment of PITI $1425 would violate what? |
REG Z |
|
|
A real estate investment that acts as a mutual fund but does not give you individual ownership is bested described as what ? |
A real estate investment trust |
|
|
When figuring the capital gain from the sale of a property, what would lower your gain? |
Capital improvements |
|
|
When a new stock is being offered to the public, which would most likely be offered as a disclosure? A. RESPA booklit B. apprasal C. Prospectus D. APR info |
Prospectus |
