Question 1

With respect to real estate transactions, the Truth-in-Lending Act applies only to loans to purchase commercial property.

Accepted Answer

A) True 
 B)False

Question 2

Predatory lending typically occurs during the loan origination process .

Accepted Answer

A) True 
 B)False

Question 3

A lender who successfully bids on property at a foreclosure sale is considered to have received repayment of the loan in the amount of the bid.

Accepted Answer

A) True 
 B)False

Question 4

Most adjustable-rate mortgages have interest rate caps that limit how much the rate can rise over the duration of the loan.

Accepted Answer

A) True 
 B)False

Question 5

Refinancing soon after obtaining a mortgage rarely benefits the homeowner and may, in fact, result in prepayment penalties.

Accepted Answer

A) True 
 B)False

Question 6

Under a deed in lieu of foreclosure, a lender agrees to surrender the deed to mortgaged property to the mortgagor and to forego payments on the loan.

Accepted Answer

A) True 
 B)False

Question 7

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

Accepted Answer

A) True 
 B)False

Question 8

To purchase a house, Greg obtains a mortgage loan with Hillside Bank. Greg defaults on the payments on the loan. The bank proceeds to foreclosure, which Greg opposes. A court supervises the process. This is

Accepted Answer

A)   forbearance.
B)   judicial foreclosure.
C)   a friendly foreclosure.
D)   a power of sale foreclosure.E) A) and C)
F) A) and D)

Question 9

To purchase a house, Ethel obtains a mortgage loan from Fidelity Bank. Later, Ethel is unable to make payments on the loan. Meanwhile, the market value of the house has declined. Fidelity agrees to a sale of the property for less than the amount due on the loan. This is

Accepted Answer

A)   forbearance.
B)   a short sale.
C)   a workout agreement.
D)   a deed in lieu of foreclosure.E) B) and C)
F) A) and D)

Question 10

Equitable redemption allows a lender to gain title and regain possession of a property.

Accepted Answer

A) True 
 B)False

Question 11

Most creditors require a borrower to purchase mortgage insurance if the borrower makes a down payment of at least 20 percent of the purchase price.

Accepted Answer

A) True 
 B)False

Question 12

Mortgage loans are contracts.

Accepted Answer

A) True 
 B)False

Exam 33: Mortgages

With respect to real estate transactions, the Truth-in-Lending Act applies only to loans to purchase commercial property.

Correct Answer
verified

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

Correct Answer
verified

To purchase a house, Greg obtains a mortgage loan with Hillside Bank. Greg defaults on the payments on the loan. The bank proceeds to foreclosure, which Greg opposes. A court supervises the process. This is

Correct Answer
verified

Under a deed in lieu of foreclosure, a lender agrees to surrender the deed to mortgaged property to the mortgagor and to forego payments on the loan.

Correct Answer
verified

Equitable redemption allows a lender to gain title and regain possession of a property.

Correct Answer
verified

A lender who successfully bids on property at a foreclosure sale is considered to have received repayment of the loan in the amount of the bid.

Correct Answer
verified

Most adjustable-rate mortgages have interest rate caps that limit how much the rate can rise over the duration of the loan.

Correct Answer
verified

Most creditors require a borrower to purchase mortgage insurance if the borrower makes a down payment of at least 20 percent of the purchase price.

Correct Answer
verified

Refinancing soon after obtaining a mortgage rarely benefits the homeowner and may, in fact, result in prepayment penalties.

Correct Answer
verified

To purchase a house, Ethel obtains a mortgage loan from Fidelity Bank. Later, Ethel is unable to make payments on the loan. Meanwhile, the market value of the house has declined. Fidelity agrees to a sale of the property for less than the amount due on the loan. This is

Correct Answer
verified

Predatory lending typically occurs during the loan origination process .

Correct Answer
verified

Mortgage loans are contracts.

Correct Answer
verified

Exam 33: Mortgages

With respect to real estate transactions, the Truth-in-Lending Act applies only to loans to purchase commercial property.

Correct AnswerverifiedShow Answer

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

Correct AnswerverifiedShow Answer

To purchase a house, Greg obtains a mortgage loan with Hillside Bank. Greg defaults on the payments on the loan. The bank proceeds to foreclosure, which Greg opposes. A court supervises the process. This is

Correct AnswerverifiedShow Answer

Under a deed in lieu of foreclosure, a lender agrees to surrender the deed to mortgaged property to the mortgagor and to forego payments on the loan.

Correct AnswerverifiedShow Answer

Equitable redemption allows a lender to gain title and regain possession of a property.

Correct AnswerverifiedShow Answer

A lender who successfully bids on property at a foreclosure sale is considered to have received repayment of the loan in the amount of the bid.

Correct AnswerverifiedShow Answer

Most adjustable-rate mortgages have interest rate caps that limit how much the rate can rise over the duration of the loan.

Correct AnswerverifiedShow Answer

Most creditors require a borrower to purchase mortgage insurance if the borrower makes a down payment of at least 20 percent of the purchase price.

Correct AnswerverifiedShow Answer

Refinancing soon after obtaining a mortgage rarely benefits the homeowner and may, in fact, result in prepayment penalties.

Correct AnswerverifiedShow Answer

To purchase a house, Ethel obtains a mortgage loan from Fidelity Bank. Later, Ethel is unable to make payments on the loan. Meanwhile, the market value of the house has declined. Fidelity agrees to a sale of the property for less than the amount due on the loan. This is

Correct AnswerverifiedShow Answer

Predatory lending typically occurs during the loan origination process .

Correct AnswerverifiedShow Answer

Mortgage loans are contracts.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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