Chapter 14
acceleration clause
A clause which requires that all remaining payments are due on the loan be paid in the event of default is termed the:
a covered loan
A loan in which a builder is required to obtain a forward commitment to secure construction financing is termed:
T
An agreement in which the buyer obtains a first mortgage form the seller, and thus an institutional lender never becomes apart to the agreement, is termed a purchase money mortgage
T
Construction loans generally have higher interest rates than permanent loans, due to their increase risk characteristics.
conduits
Firms which assist pension funds, insurance companies, or other lender's in distributing mortgage obligations to mortgage investors are known as:
F
In all states, the borrowers' rights in a mortgage contract end with the foreclosure sale.
F
In lien-theory states mortgage instruments contain power-of-sale clauses that allow foreclosure without going to court.
All of the above
In the U.S.
T
In title-theory states, lenders technical receive title to the property in mortgage contracts
F
Money invested directly in properties by those who take ownership and operate the properties is termed private debt.
T
Money that flows to the lender from two sources enables the lender to participate in the creation of a mortgage -- these sources are deposits and the sale of mortgage to the secondary mortgage market.
public debt
Money that is invested in shares issued and traded in securities markets of pools of mortgage loans such as mortgage-backed securities is termed:
recourse financing
Mortgage documents containing notes with specific language about the borrower's promise to repay loans establish what is termed:
T
Real estate investment in England and Japan occurs without highly competitive private mortgage markets.
a contractual pledge for real estate to serve as collateral for a loan
Technically, a mortgage is best described as:
F
The construction loan may often be extended for a long term as a standard first mortgage loan
equity REITs
The public entity quadrant of real estate markets includes the following major participants:
T
The repayment of land development loans often occur in a lump sum with the completion of the development or with the sale of individual lots.
equity right of redemption
The right given to borrowers to make up overdue payments when in default, but prior to a sale of the property is termed the:
A source for the sale of mortgages to investors
The secondary mortgage market serves as:
