Financing Quiz

Question 1

When a purchaser enters into a loan agreement with a lender, the lender requires two things: A mortgage and a deed of trust.

Answer

true

Question 2

A "due-on sale clause" is a clause that states that, should the real property securing the loan obligation be sold, the total amount outstanding on the loan becomes immediately due.

Answer

true

Question 3

Mutual savings banks are a major source of construction loans, short-term loans, and home improvement loans.

Answer

true

Question 4

Like commercial banks, savings and loan associations are either federally or state chartered.

Answer

true

Question 5

Mortgage brokers, are licensed individuals who act as middlemen in financing transactions.

Answer

true

Question 6

The parties to a mortgage are the mortgagor (the borrower) and the mortgagee (the lender).

Answer

true

Question 7

A deed of trust is sometimes referred to as a mortgage trust deed or trust deed.

Answer

true

Question 8

Generally, the foreclosure process is faster and the procedures are less complex under a deed of trust than under a mortgage instrument.

Answer

true

Question 9

Conventional lenders usually charge a loan origination fee to process the loan application, normally 3.5% of the loan amount.

Answer

true

Question 10

The money from an FHA mortgage is given to borrowers by the Federal Housing Administration.

Answer

true

Question 11

The certificate of eligibility and the certificate of reasonable value, are part of the requirements for those eligible veterans applying to a VA loan.

Answer

true

Question 12

The loan commitment is one of the documentation borrower should have ready at the initial interview with a loan officer.

Answer

true

Question 13

FIFU, FinCEN, and MBA are the three mayor secondary lenders.

Answer

true

Question 14

A promissory note is signed only by the maker and usually is not witnessed, notarized, or recorded.

Answer

true

Question 15

The parties to the promissory note are the borrower, referred to as the maker, and the lender, referred to as the payee or holder.

Answer

true

Financing Quiz

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