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24 Cards in this Set

  • Front
  • Back
All of the following statements are applicable to promissory notes EXCEPT:

A. they must be written
B. the borrower is personally liable for payment
C. they provide evidence of a valid debt
D. they are executed by the lender
D. they are executed by the lender
Which of the following statements concerning a mortgage is correct?

A. the purpose of a mortgage is to secure the payment of a promissory note
B. a mortgage is a lien on real property
C. a mortgage is a two-party instrument
D. none of the above
D. none of the above
Which of the following is NOT a right given to lenders by a deed of trust?

A. assignment
B. possession after default
C. forsclosure
D. equity of redemption
D. equity of redemption
The clause that makes a mortgage unassumable is:

A. defeasance
B. alienation
C. mortgaging
D. prepayment
B. alienation
Which of the following gives the borrower the right to pay the debt in full and remove the mortgage lien at any time prior to default?

A. defeasance
B. prepayment
C. equity of redemption
D. foreclosure
A. defeasance
An Illinois mortgagor in default has all of the following EXCEPT:

A. a statutory right of reinstatement
B. a statutory right of redemption
C. an equitable right of redemption
D. a freehold right of redemption
D. a freehold right of redemption
A deed in lieu of foreclosure conveys a title to:

A. lender
B. borrower
C. trustee
D. mortgagor
A. lender
Which of the following is paid first from the proceeds of a foreclosure sale?

A. mortgage debt
B. real property taxes
C. mortgagee's equity
D. sales expenses
D. sales expenses
A deficency judgement may be available to:

A. mortgagee
B. mortgagor
C. trustee
D. trustor
A. mortgagee
A buyer assumed the seller's mortgage without providing release of liability and subsequently defaulted. Which of the following is correct?

A. only the buyer is personally liable for payment of the note
B. only the seller is personally liable for payment of the note
C. both the buyer and the seller may be personally liable for payment of the note
D. neither the buyer nor the seller is personally liable for payment of the note
C. both the buyer and the seller may be personally liable for payment of the note
Which of the following traditionally has provided more financing for the purchase or construction of single-family, owner-occupied dewellings than any other type of lending institution?

A. mortgage bankers
B. commercial bankers
C. mutual savings banks
D. savings and loan associations
D. savings and loan associations
The activity of lending intitutions making mortgage loans directly to individual borrowers is:

A. secondary mortgage market
B. money market
C. institutional market
D. primary mortgage market
D. primary mortgage market
Which of the following is a government-owned corporation that purchases FHS and VA mortgages?

A. Fannie Mae
B. Ginnie Mae
C. Freddie Mac
D. Maggie Mae
B. Ginnie Mae
The major benefit of secondary mrortgage market is to reduce the effect of:

A. amortization
B. liquidity
C. disintermediation
D. expensive settlement charges
C. disintermediation
Which of the following statements is true?

A. Illinois is a lien theory state
B. Illinois is a title theory state
C. Illinois is an intermediate theory state
D. Illinois is not a theory state
C. Illinois is an intermediate theory state
The largest purchaser of home loans on the secondary mortgage market is:

A. FNMA
B. FHLMC
C. MGMC
D. GNMA
A. FNMA
The right of redemption that exists before a foreclosure sale takes place is called the:

A. equitable right of redemption
B. statutory right of redemption
C. trustee's right of redemption
D. hypothecated right of redemption
A. equitable right of redemption
Fter a foreclosure sale, the money from the sale will be disbursed in the following order:

A. real estate taxes, expense of the sale, liens according to the date recorded
B. real estate taxes, expense of the sale, liens according to the date recorded, any excess to lender
C. expense of the sale, real estate taxes, liens according to the date recorded, any excess to borrower
D. expense of the sale, liens according to the date recorded, any excess to borrower
D. expense of the sale, liens according to the date recorded, any excess to borrower
Charging an interest higher than that allowed by law is called:

A. the sucker rate
B. LIBOR
C. excessive
D. usury
D. usury
When individuals invest their money directly rather than deposit it into banks and S&Ls, it is called?

A. disseisin
B. disintermediation
C. hypothecation
D. subordination
B. disintermediation
A person providing for the funding and servicing of the loan is a:

A. mortgage broker
B. mortgage banker
C. mortgage counselor
D. mortgage processor
B. mortgage banker
A long-term note or bond not secured by a particular property is called a:

A. subordination
B. subrogation
C. chattel mortgage
D. debenture
D. debenture
Kathy sells her house to Madeline. Madeline is giving Kathy cash for the equity she has in the property and is taking over her payments on the loan. Because of the way the contract is written, Madeline will not be personally liable for the repayment of the loan. Kathy allowed Madeling to:

A. con her
B. assume her loan
C. buy subject to her loan
D. excerise her option
C. buy subject to her loan
Which of the following is a negotiable instrument?

A. note
B. mortgage
C. trust deed
D. obligor
A. note