Question 1

Title theory and lien theory are different methods of

Accepted Answer

hypothecation

Question 2

Under the title theory approach to hypothecation of mortgaged property, the legal title is held by the

Accepted Answer

lender

Question 3

Under the title theory approach to hypothecation of mortgaged property, security for the note is provided by the lender holding

Accepted Answer

legal title

Question 4

Under the title theory approach to hypothecation of real property, the borrower holds

Accepted Answer

equitable title

Question 5

Under the lien theory approach to hypothecation of mortgaged property, the legal title is held by the

Accepted Answer

borrower

Question 6

Under the lien theory approach to hypotheation of mortgaged property, security for the note is provided by the lender holding

Accepted Answer

a lien

Question 7

Under the lien theory approach to hypotheation of mortgaged property, a lien is created in favor of the

Accepted Answer

lender

Question 8

Under the intermediate theory approach to hypotheation of mortgaged property, the legal title is normally held by the

Accepted Answer

borrower

Question 9

Under the intermediate theory approach to hypotheation of mortgaged property, thelegal title goes to the lender only if the borrower

Accepted Answer

defaults

Question 10

The names of the parties to a mortgage must included

Accepted Answer

both parties

Question 11

The borrower in a mortgage instrument is called the

Accepted Answer

mortgagor

Question 12

The lender in a mortgage instrument is called the

Accepted Answer

mortgagee

Question 13

The clause in a mortgage which conveys legal title to the property to the lender is the ________ clause

Accepted Answer

granting

Question 14

The clause in a mortgage which makes the mortgage null and void when the mortgage is paid in full is called the ______ clause

Accepted Answer

defeasance

Question 15

The defeasance clause stipulates that when a mortgage is paid in full, the mortgage is _______

Accepted Answer

null and void

Question 16

The granting clause in a mortgage is

Accepted Answer

always included

Question 17

The defeasance clause in a mortgage is

Accepted Answer

always included

Question 18

The covenants in a mortgage are

Accepted Answer

optional

Question 19

The covenants included in a mortgage are promises made by the

Accepted Answer

mortgagor, the borrower

Question 20

The covenant in which the borrower promises to pay all taxes as they become due is the covenant

Accepted Answer

to pay taxes

Question 21

The word "alienate" means

Accepted Answer

to transfer

Question 22

The alienation clause in a mortgage is

Accepted Answer

optional

Question 23

The clause in a mortgage which permits the lender to call in the note if the mortgagor transfers the property is called ______ clause

Accepted Answer

alienation

Question 24

The due on sale clause is the same things as the _____ clause

Accepted Answer

alienation

Question 25

The clause which is used by the lender to prevent assumption of a loan is called the ____ clause

Accepted Answer

alienation

Question 26

If the mortgagor fails to adhere to the covenants in the mortgage, the mortgagee may invoke the ______ clause

Accepted Answer

acceleration

Question 27

Most conventional loans

Accepted Answer

contain an alienation clause

Question 28

An FHA loan may be assumed without qualifying

Accepted Answer

in some cases only

Question 29

The document completed by a lender that shows how much of a loan remains to be paid is called the certificate of

Accepted Answer

reduction

Question 30

The document by which a borrower verifies the amount still owed on a loan and the interest rate is called the certificate of

Accepted Answer

estoppel

Question 31

Loans usually take priority from the date they are

Accepted Answer

recorded

Question 32

A clause in a mortgage which waives a priority of recordation is called a _____ clause

Accepted Answer

subordination

Question 33

The legal procedure which is implemented when a borrower defaults on a note secured by real property is called

Accepted Answer

foreclosure

Question 34

In foreclosure, the lender can recapture the unpaid principal by

Accepted Answer

selling the property

Question 35

In foreclosure, the borrower's rights in the property are

Accepted Answer

terminated

Question 36

If a foreclosed property sells for less than the outstanding debt, what recourse does the lender have?

Accepted Answer

sue the borrower

Question 37

If the foreclosed property sells for less than the outstanding debt, the lender may obtain a

Accepted Answer

deficiency judgement

Question 38

If a foreclosed property sells for more than the outstanding debt, the excess amount goes to the

Accepted Answer

mortgagor

Question 39

In some states, a borrower may regain foreclosed property by satisfying the debt after foreclosure.  This is called _______

Accepted Answer

statutory redemption

Question 40

In GA foreclosed property may be reclaimed after foreclosure

Accepted Answer

under no circumstances

Question 41

A deed in lieu of foreclosure may be used to prevent foreclosure

Accepted Answer

if the lender approves

Question 42

Foreclosure without court action requires that the mortgage contain a _____clause

Accepted Answer

power-of-sale

Question 43

A second type of instrument used to secure notes on real property that is second in use to the mortgage is the

Accepted Answer

deed of trust

Question 44

In a deed of trust how many parties are involved?

Accepted Answer

3

Question 45

When a deed of trust is used to secure a note for real property, the title is held by the

Accepted Answer

trustee

Question 46

The title held by the trustee when a deed of trust is used to secure a note on real property is called ______ title

Accepted Answer

naked

Question 47

When naked title is held by a trustee, the right of possession and the right to sell are held by the

Accepted Answer

borrower

Question 48

When a trust deed is used, the lender is called the

Accepted Answer

beneficiary

Question 49

When a trust deed is used, the borrower is called the

Accepted Answer

trustor

Question 50

When a trust deed is used, the the third party in the transaction is called the

Accepted Answer

trustee

Question 51

In a trust deed, the two clauses which create the primary difference from a mortgage are the reconveyance and ________ clauses

Accepted Answer

power- of- sale

Question 52

In a trust deed, the two clauses which create the primary difference from a mortgage are the power-of-sale and _____clauses

Accepted Answer

reconveyance

Question 53

With a trust deed, the clause which is included that recquires the trustee to reconvey the title to the trustor when the loan as been satisfied is the _______ clause

Accepted Answer

reconveyance

Question 54

In a trust deed, the clause which is included to provide for non-judicial foreclosure is the _____ clause

Accepted Answer

power-of-sale

Question 55

The type of foreclosure usually associated with a trust deed is _______foreclosure

Accepted Answer

non-judicial

Question 56

In GA, the instrument used to secure a promissory note on real property is called a ____

Accepted Answer

security deed

Question 57

Another name for a security deed is a

Accepted Answer

deed to secure debt

Question 58

The primary difference between a security deed and a mortgage is that the security deed does not contain a _____ clause

Accepted Answer

defeasance

Question 59

When a security deed is used to secure debt, the lender is called the ______

Accepted Answer

grantee

Question 60

When a security deed is used to secure debt, the borrower is called the _______

Accepted Answer

grantor

Question 61

When a security deed is used to secure debt, the lender holds legal title in the form of a ___estate

Accepted Answer

fee

Question 62

When a security deed is used to secure debt, the fee estate held by the lender is a _____

Accepted Answer

defeasible fee

Question 63

When a security deed is used to secure debt, the borrower hold _____title

Accepted Answer

equitable

Question 64

When a security deed is used to secure debt, and the debt is satisfied, the borrower may obtain legal title to the property by exercising the right of

Accepted Answer

redemption

Question	Answer
Title theory and lien theory are different methods of	hypothecation
Under the title theory approach to hypothecation of mortgaged property, the legal title is held by the	lender
Under the title theory approach to hypothecation of mortgaged property, security for the note is provided by the lender holding	legal title
Under the title theory approach to hypothecation of real property, the borrower holds	equitable title
Under the lien theory approach to hypothecation of mortgaged property, the legal title is held by the	borrower
Under the lien theory approach to hypotheation of mortgaged property, security for the note is provided by the lender holding	a lien
Under the lien theory approach to hypotheation of mortgaged property, a lien is created in favor of the	lender
Under the intermediate theory approach to hypotheation of mortgaged property, the legal title is normally held by the	borrower
Under the intermediate theory approach to hypotheation of mortgaged property, thelegal title goes to the lender only if the borrower	defaults
The names of the parties to a mortgage must included	both parties
The borrower in a mortgage instrument is called the	mortgagor
The lender in a mortgage instrument is called the	mortgagee
The clause in a mortgage which conveys legal title to the property to the lender is the ________ clause	granting
The clause in a mortgage which makes the mortgage null and void when the mortgage is paid in full is called the ______ clause	defeasance
The defeasance clause stipulates that when a mortgage is paid in full, the mortgage is _______	null and void
The granting clause in a mortgage is	always included
The defeasance clause in a mortgage is	always included
The covenants in a mortgage are	optional
The covenants included in a mortgage are promises made by the	mortgagor, the borrower
The covenant in which the borrower promises to pay all taxes as they become due is the covenant	to pay taxes
The word "alienate" means	to transfer
The alienation clause in a mortgage is	optional
The clause in a mortgage which permits the lender to call in the note if the mortgagor transfers the property is called ______ clause	alienation
The due on sale clause is the same things as the _____ clause	alienation
The clause which is used by the lender to prevent assumption of a loan is called the ____ clause	alienation
If the mortgagor fails to adhere to the covenants in the mortgage, the mortgagee may invoke the ______ clause	acceleration
Most conventional loans	contain an alienation clause
An FHA loan may be assumed without qualifying	in some cases only
The document completed by a lender that shows how much of a loan remains to be paid is called the certificate of	reduction
The document by which a borrower verifies the amount still owed on a loan and the interest rate is called the certificate of	estoppel
Loans usually take priority from the date they are	recorded
A clause in a mortgage which waives a priority of recordation is called a _____ clause	subordination
The legal procedure which is implemented when a borrower defaults on a note secured by real property is called	foreclosure
In foreclosure, the lender can recapture the unpaid principal by	selling the property
In foreclosure, the borrower's rights in the property are	terminated
If a foreclosed property sells for less than the outstanding debt, what recourse does the lender have?	sue the borrower
If the foreclosed property sells for less than the outstanding debt, the lender may obtain a	deficiency judgement
If a foreclosed property sells for more than the outstanding debt, the excess amount goes to the	mortgagor
In some states, a borrower may regain foreclosed property by satisfying the debt after foreclosure. This is called _______	statutory redemption
In GA foreclosed property may be reclaimed after foreclosure	under no circumstances
A deed in lieu of foreclosure may be used to prevent foreclosure	if the lender approves
Foreclosure without court action requires that the mortgage contain a _____clause	power-of-sale
A second type of instrument used to secure notes on real property that is second in use to the mortgage is the	deed of trust
In a deed of trust how many parties are involved?	3
When a deed of trust is used to secure a note for real property, the title is held by the	trustee
The title held by the trustee when a deed of trust is used to secure a note on real property is called ______ title	naked
When naked title is held by a trustee, the right of possession and the right to sell are held by the	borrower
When a trust deed is used, the lender is called the	beneficiary
When a trust deed is used, the borrower is called the	trustor
When a trust deed is used, the the third party in the transaction is called the	trustee
In a trust deed, the two clauses which create the primary difference from a mortgage are the reconveyance and ________ clauses	power- of- sale
In a trust deed, the two clauses which create the primary difference from a mortgage are the power-of-sale and _____clauses	reconveyance
With a trust deed, the clause which is included that recquires the trustee to reconvey the title to the trustor when the loan as been satisfied is the _______ clause	reconveyance
In a trust deed, the clause which is included to provide for non-judicial foreclosure is the _____ clause	power-of-sale
The type of foreclosure usually associated with a trust deed is _______foreclosure	non-judicial
In GA, the instrument used to secure a promissory note on real property is called a ____	security deed
Another name for a security deed is a	deed to secure debt
The primary difference between a security deed and a mortgage is that the security deed does not contain a _____ clause	defeasance
When a security deed is used to secure debt, the lender is called the ______	grantee
When a security deed is used to secure debt, the borrower is called the _______	grantor
When a security deed is used to secure debt, the lender holds legal title in the form of a ___estate	fee
When a security deed is used to secure debt, the fee estate held by the lender is a _____	defeasible fee
When a security deed is used to secure debt, the borrower hold _____title	equitable
When a security deed is used to secure debt, and the debt is satisfied, the borrower may obtain legal title to the property by exercising the right of	redemption
The security deed usually provides for non-judical foreclosure through a clause in the deed called the _____clause	power- of -sale
The amount of money borrowed on a loan is called the	principal
The money paid for the privilege of using a lender's principal is called	interest
The period of time over which a loan is repaid is called the	term
The amount of the original loan remaining to be paid at a given point in time is called the	principal balance
The difference between the market value and the outstanding principal balance on any loans against the property is called the owner's	equity
At the time a loan is originated, the owner's equity is equal to the	down payment
The type of loan on which only interest is paid during the term of the loan is called a ___loan	term
With a term loan, the principal is paid	at the end of the term
A term loan is also called a ______loan	straight
At the end of the term of a straight loan, the principal is	paid in one payment
A loan in which both principal and interest are paid during the term of the loan is called a ______loan	amortized
With an amortized loan, the amount of the interest in successive payments	decreases
With an amortized loan, the amount of the principal in successive payments	increases
By the end of the term of an amortized loan, the principal is	fully paid
By the end of the term of a partially amortized loan, the principal is	partially paid
At the end of the term of a partially amortized loan, the remaining principal is	paid in one payment
The final payment on a partially amortized loan is called a _____payment	balloon
An amortized loan that also includes in each payment an amount to cover taxes and insurance is called a _______loan	budget
A PITI loan is another name for a ______ loan	budget
A real estate loan which also includes a provision for an installment payment on some article of personal property is called a ______loan	package
A loan from the seller to the buyer to finance all or part of the purchase price of real property is called a ______loan	purchase money
A purchase money loan can be used with what loan priority?	Any mortgage priority
A loan which the borrower can obtain additional money during the term of the loan is called a ______loan	open-end
The type of loan used often with "home equity loans" is a ______loan	open-end
A loan in which more than one property is hypothecated as security for a single loan is called a ______loan	blanket
A clause which allows for removing one or more properties from a blanket loan is called a ______clause	partial release
An amortized loan under which the payments are set low originally and gradually increase over the first few years of the loan is called a _____loan	graduated payment
When the principal amount on a loan increases during the term of the loan, it is called	negative amortization
Negative amortization results from	unpaid interest
With an adjustable rate loan, the rate of interest is tied to a	index
With an adjustable rate loan, the amount added to the index to get the interest rate on the loan is called the	margin
The maximum amount the interest rate on an adjustable rate loan can increase in one adjustment period is called the	periodic interest rate cap
The maximum amount the interest rate an increase over the life of an adjustable rate loan is called the	lifetime cap
Negative amortization is possible with adjustable rate and _____loans	graduated payment
Negative amortization is possible with graduated payments and _____loans	adjustable rate
A wraparound mortgage can be used with ______existing loan	an assumable
When a wraparound mortgage is used, the existing loan	remains in effect
When a buyer uses a wraparound mortgage, the payment on the existing loan is made by the	seller
A mortgage in which the seller prepays interest on the buyer's behalf is called a ______loan	buydown
A loan in which the lender offers the borrower favorable loan terms in exchange for a share of the appreciation from the property when it is sold is called a ______loan	shared equity
A transaction in which the owner sells the property to an investor who then leases the property back to the original owner is called a ______arrangement	sale and leaseback
Reverse annuity loans are frequently used by	retirees
The places where lenders originate loans are collectively called the _______ mortgage market	primary
Banks and savings and loan associations are part of the _______ mortgage market	primary
Savings and loan associations make primarily _______ loans	residential
Companies that make mortgage loans and then sell them to long-term investors are called	mortgage companies
Those who bring borrowers and lenders together but don't make loans themselves are called	mortgage brokers
Commercial banks make primarily _____ loans	short term
The short term loans made primarily by commercial banks include commercial and _____ loans	construction
Commercial banks and savings and loan associations loan money which is obtained primarily from	their depositors
The commercial and construction loans often made by commercial banks are usually high risk and	high interest rate
Most residential real estate loans are made by	mortgage companies
Because mortgage companies sell most of their loans to investors, they traditionally made ______ loans	government-backed (FHA or VA)
The type of lender whose real estate loans are primarily construction loans is a ______	commercial bank
The largest number of loans made by private lenders are made by	sellers
The money that insurance companies loan as mortgage loans comes from	premiums paid by policyholders
Insurance companies tend to make loans to	larger real estate projects
Bonds for real estate purposes can be issued by	municipalities
Interest rates on municipal bonds for real estate financing are typically	1-2% below market
The major function of the secondary mortgage market is to	buy loans from primary lenders
The advantage of selling loans to the secondary mortgage market is that primary lenders	have more money to loan
The Federal National Mortgage Association is commonly referred to as	Fannie mae
The oldest and largest member of the secondary mortgage market is	Fannie Mae
Fannie Mae is a	federally chartered private organization overseen by the federal government
The Government National Mortgage Association is commonly referred to as	Ginnie Mae
Ginnie Mae is a	federal agency within HUD
Ginnie Mae provides funds by	guaranteeing securities issued by others
The Federal Home Loan Mortgage Corporation is commonly referred to as	Freddie Mac
The primary purpose of Freddie Mac is to increase the availability of financing for residential real estate by	buying primarily conventional loans
The money Freddie Mac uses to buy mortgages comes from	the sale of its own securities
Prior to the Depression in the 1930's, most residential real estate loans were_______loans	straight
After the Depression, a new form of residential real estate loan became popular, called a ______ loan	amortized
Compared to straight loans, amortized loans were made for	longer periods of time
The Federal Housing Administration FHA has as its primary purpose to	insure loans
The primary purpose for which Fannie Mae was created is to	buy loans from lenders
A major objective in creating both FHA and Fannie Mae was to	increase the availability of loan money
Discount points are actually	prepaid interest
When a lender "discounts a loan" he/she charges the borrower	discount points
One discount point is defined as	1% of the loan amount
The loan-to-value ratio is expressed as a	percentage
The amount of a loan divided by the smaller of the sales price or the appraised value is the _______ ratio	loan-to-value
The loan-to-value ratio is equal to the amount of a loan divided by the smaller of the appraised value or	sales price
With conventional loans without private mortgage insurance, the LTV is usually limited to	80%
At closing, title insurance is	required by the lender
At closing, title insurance that protects the borrower is	available at the buyer's option
The amount charged by the lender for processing the loan is called the	origination fee
The origination fee on FHA loans is limited to	1%
At closing, the intangibles tax is charged by the state to the	lender
At closing, the intangibles tax is usually paid by the	buyer
If the intangibles tax is not paid at closing, the	lender may not foreclose on the buyer

Real Estate

Financing

"Know" box contains:
Time elapsed:
Retries: