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49 Multiple choice questions

  1. is a security instrument that has a first lien position.
  2. occurs when a quilified senior citizen mortgages the home to a lender and, in return, recieves a monthly check from the lender. when home is sold or when borrower dies mortage is repaid.
  3. is secured by a mortgage on ones principle residence.
  4. loans with payments applied to the principal and interest.
  5. private investors, sellers, banks and morgage companies ofer loan programs that specialize in people with band credit.
  6. is a mortgage that occurs between the termination of one mortgage and the begining of the next.
  7. Adjustable Rate Mortgage; mortgage that permits a lender to periodically adjust the interest rate to reflect fluctuations in the cost of money.
  8. the amount of money borrowed compared to the value of the property.
  9. are instruments held by third party as security for the payment of he note. borrower is trustor, lender is benificiary, and independent third party is trustee. the creditor may use power of sale clause without court supervision, called non-judicial forclosure.
  10. one who originates mortgage loans, usually funding loans with a company's own funds. mortgage bankers may sell loans or retain and service them.
  11. Principal, Interest, Taxes, and Insurance; typical payment on a mortgage loan.
  12. occurs when seller extends credit to a buyer to finance the purchase of the property. instead of or in addition to, the buyer obtaining a loan from third party. many reasons ( no down payment, low interest rate on seller's exsisting mortgage).
  13. property aquired by a lending institute through forclosure and held in inventory.
  14. morgage given by buyer to a lender or seller to secure part or all of the money borrowed to purchase property.
  15. is a temporary loan used to finance the construction of improvements and buildings on land.
  16. are promissory notes or other finance instruments that are freely transferable from one party to another.
  17. the lender or other creditor can obtain immediate cash by selling the note (e.g., real estate notes sold to the secondary market.) the sale is ussually at the discount, meaning the note is sold for a cash amount less than the note's face value.
  18. loans that meet FNMA / FHLMC standards and which can be sold on the secondary market. NON-CONFORMING loans do not meet these standards.
  19. an instrument that creates a lien against real property as security for a note.
  20. is the act of pooling mortgages, then selling them as mortgage-backed securities.
  21. established in 1968, a government-owned corporation that guarantees principal and interest payments to investors who buy its morgage-backed securities.
  22. is a mortgage a borrower gives to a lenders to get cash for the equity that has built up in the property.
  23. insurence offered by private companies to insure a lender against default by a borrower on a loan.
  24. established in 1970,a non-profit, federally chartered institution (now privately owned) that fuctions as a buyer and seller of residential mortgages.
  25. one party taking over responsibility for a loan made to another.
  26. occurs hen value in a property is traded for value in another property. (tax-deferred exchange, tax free exchange. rules; like kind property, use in trade or business or as aninvestment, delayed exchange.
  27. one percent of a loan amount. points can be charged for any reasons, but often are used for buydowns.
  28. when a seller leases property leases property for a specific term, with the tenant agreeing to buy the property at a set price during or following the lease term.
  29. is a security instrument that has the second lien position.
  30. financial institutions that make real estate loans that they keep and service in-house, instead of selling on the secondary markes.
  31. Veteran's Administration; goverment agency that guarantees mortgage loans for elegible veterans.
  32. an instument that gives the creditor the right to sell the collateral to satisfy the dept if the debtor fails to pay according to the terms of the agreement.
  33. is a government agency under the department of agriculture that offers assistance programs for buyers of farms and homes in rural areas or small towns. either guarantees loans made by private lenders or makes direct loans when necessary, also helps with low-income rural families by offering low-interest home loans, providing needed capital.
  34. a real estate installment agreement in which the buyer makes payments to the seller in exchange for the right to occupy and use property, but no deed or title is transferred until all, or a specified portion of, payments have been made.
  35. contract clause that gives a lender the right to declare the entire loan balance due immediately because a spacific reason, such as borrower default.
  36. is a pledge of property as security for a dept without giving up possession of it. ( 2 main types ar mortgage and trust deeds)
  37. contract clause that gives the lender certain stated rights when property ownership is transferred.
  38. covers more than one parcel of land or lot, usually used to finance subdivision developments. pay curtain amount to release some of the lots, with the mortgage continuing to cover the other lots.
  39. are a written legal document the establish the rights and dutiesof the involved parties.
  40. when a seller leases property to someone for a specific term, with the tenant having the option to buy the property at a set price during or following the lease term. optin money is non-refundable.
  41. Federal Housing Administration; a government agency under the department of housing and urban development (HUD) that insures mortgage loans.
  42. when a property is transfered to a byer with an existing mortgage or lien, but without the buyer accepting personal resposibility for the debt.
  43. established in 1938, the nations largest privately owned investor in conventional, FHA, and VA residential mortgages.
  44. additional funds, in the form of points, paid to the lender at the beginning of a loan to lower the interest rate and monthly payment.
  45. an exsisting loan on a property is retained while the lender gives the buyer another, larger loan. total dept (new loan plus existing loan) is treated as a single obligation by the buyer, with one monthly payment made on the dept.
  46. a loan not insured or guaranteed by a government entity.
  47. one or more underwriting indicators that fall outside the acceptable range for secondary market (fnma) usually people high dept ratio, appariasal that does not match price.
  48. one who, for a fee, places loans with investors but, tipically, does not service such loans. mortgage brokers generally do not fund thier loans.
  49. is a mortgage that a borrower for the borrower to redo or exspand the loan on the property.