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Questions and Answers
What type of loan secures the purchase of personal property?
What type of loan secures the purchase of personal property?
Which entity is NOT typically associated with mortgage lending?
Which entity is NOT typically associated with mortgage lending?
What is a major characteristic of a balloon mortgage?
What is a major characteristic of a balloon mortgage?
What document is used to hypothecate personal property?
What document is used to hypothecate personal property?
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In a land contract, who retains legal title to the property during the repayment period?
In a land contract, who retains legal title to the property during the repayment period?
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What is a construction loan often referred to as?
What is a construction loan often referred to as?
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Which action might a lender take to create a tightening effect in the market?
Which action might a lender take to create a tightening effect in the market?
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Which of the following cannot be prioritized over existing tax liens?
Which of the following cannot be prioritized over existing tax liens?
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What will a purchase money first mortgage typically take priority over?
What will a purchase money first mortgage typically take priority over?
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Which type of note only pays interest during its term?
Which type of note only pays interest during its term?
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What does a promissory note signify?
What does a promissory note signify?
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If a lender charges an interest rate greater than the market rate, what may happen?
If a lender charges an interest rate greater than the market rate, what may happen?
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Which description fits a conventional mortgage most accurately?
Which description fits a conventional mortgage most accurately?
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Which loan names are synonymous?
Which loan names are synonymous?
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What document is used to signify ownership transfer of real property?
What document is used to signify ownership transfer of real property?
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Which type of agreement allows a borrower to use personal property as collateral for a loan?
Which type of agreement allows a borrower to use personal property as collateral for a loan?
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What is a loan that is known as a standby loan?
What is a loan that is known as a standby loan?
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What is the best description of a land contract?
What is the best description of a land contract?
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What is referred to as the provision requiring lender approval before a loan can be assumed?
What is referred to as the provision requiring lender approval before a loan can be assumed?
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What does the term 'beneficiary statement' refer to in real estate financing?
What does the term 'beneficiary statement' refer to in real estate financing?
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If a trustor defaults on a deed of trust, what is the most expected remedy for the beneficiary?
If a trustor defaults on a deed of trust, what is the most expected remedy for the beneficiary?
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What type of loan is specifically referenced as allowing the lender to be paid in full before the end of the loan term?
What type of loan is specifically referenced as allowing the lender to be paid in full before the end of the loan term?
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In a deed of trust scenario, what may prohibit the trustor from obtaining another loan?
In a deed of trust scenario, what may prohibit the trustor from obtaining another loan?
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What does a mortgage typically include that relates to assuming the loan?
What does a mortgage typically include that relates to assuming the loan?
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What is the potential effect of an alienation clause in a loan?
What is the potential effect of an alienation clause in a loan?
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What is typically required from a trustee when a deed of trust is assigned?
What is typically required from a trustee when a deed of trust is assigned?
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What does a prepayment penalty imply in a loan agreement?
What does a prepayment penalty imply in a loan agreement?
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How does a trustee's sale differ from a judicial foreclosure?
How does a trustee's sale differ from a judicial foreclosure?
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What defines a purchase money mortgage?
What defines a purchase money mortgage?
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When can a lender utilize an acceleration clause?
When can a lender utilize an acceleration clause?
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What is typically a requirement for charging interest on loans?
What is typically a requirement for charging interest on loans?
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Which of the following statements about prepayment penalties is true?
Which of the following statements about prepayment penalties is true?
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Study Notes
Chapter 9 Quiz - Key Concepts
- Hypothecation of Personal Property: A security agreement is used to secure a loan for personal property. A bill of sale transfers title.
- Federal Reserve Actions (Tight Money Market): Actions by the Federal Reserve to create a tight money market include raising the discount rate and selling bonds.
- Purchase Money First Mortgage Priority: A purchase money first mortgage takes priority over existing liens against the property, recorded at the time of sale, and subsequently recorded liens.
- Usury: Charging interest above the maximum allowed by law
- Deed of Reconveyance: Executed by the trustee in a deed of trust to release the property from the loan.
- Calling a Note: This requires a lender to demand payment of past due loan installments.
- Interest-Only Note: A loan type where only interest is paid initially, often followed by a balloon payment.
- Types of Loans: Different loan types exist, including straight notes, amortized notes, installment notes, and cognovit notes.
- Interim/Takeout/Construction Loans: Interim/construction loans (often synonymous), are short-term loans usually followed by a long-term loan; Takeout loans are permanent financing for construction.
- Prepayment Penalty: A fee paid when a borrower pays off the loan early.
- Land Contract: Can be a substitute for a note and deed of trust, acting as a security device
- Subordination Clause: Permits a lender to give priority to later recorded loans.
- Mortgage Assumption Clause: The clause where a lender permits the transfer of a loan.
- Statement from Property Owner: Documentation showing payment, principle balance, and loan details.
- Beneficiary Remedies: If default occurs in a deed of trust, trustees' sales are the most effective remedy
- Foreclosure Methods: Deed of trust foreclosures are usually quicker than judicial foreclosures.
- Purchase Money Mortgage: A loan used to purchase a property where the property acts as security for the loan. This can be from the seller, a bank, or another lender.
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Description
Test your knowledge on essential concepts from Chapter 9 related to personal property loans, federal reserve actions, and mortgage priorities. This quiz covers key terms including hypothecation, usury, and various loan types. Assess your understanding of these crucial financial principles.
