REE Chapter 9

Advantages from a lender's perspective with power of sale rather than judicial foreclosure include:

faster less costly

The right of a lender to pursue a deficiency judgment when a home mortgage loan is sold at foreclosure auction for less than the mortgage balance exists in some _________ states. Multiple choice question. 20 40 48 30

40

A buyer acquires a property with existing mortgage debt either "subject to" the debt or by assuming the debt. In which case is the seller relieved of all possible liability for the loan?

Only in the case of assuming, and only with a release from the lender

A buyer acquires a property with existing mortgage debt either "subject to" the debt or by assuming the debt. In which case is the seller relieved of all possible liability for the loan? Multiple choice question. Only in the case of assuming, and only with a release from the lender As long as the loan is assumed As long as the property is acquired "subject to" In both cases In neither case, ever

Only in the case of assuming, and only with a release from the lender

The Dodd-Frank Act, in creating new standards for home mortgages adopted as a central standard ________ to _________

ability to repay

In foreclosure the defaulted borrower has the right to redeem the property up to the time of sale at public auction by paying off the defaulted loan and paying foreclosure expenses of the lender. This is the right called

equity of redemption

In addition to requirements concerning use of the Loan Estimate and the Closing Disclosure, RESPA sets limits on required _______ deposits.

escrow

ECOA, the Equal Credit Opportunity Act of 1974 prohibits consideration in home mortgage lending of: Multiple select question. information about a spouse who is not part of the loan application whether income is from public assistance child bearing plans of a woman applicant how long the applicant has been employed whether income is from part-time or full-time work

information about a spouse who is not part of the loan application whether income is from public assistance child bearing plans of a woman applicant whether income is from part-time or full-time work

Creation of the CFPB (Consumer Financial Protection Bureau) was a significant departure in national consumer protection in that CFPB was empowered to oversee and enforce: Multiple select question. prevention of unfair wage practices national anti-discrimination laws in consumer finance prevention of anti-union practices regulation of unfair or deceptive practices national consumer protection laws

national anti-discrimination laws in consumer finance regulation of unfair or deceptive practices national consumer protection laws

A risk that a lender faces in agreeing to change the schedule of payments for a defaulting borrower is that courts may view the change as a new, replacement mortgage, with priority below any other existing lien. This risk is known as________ of the mortgage.

recasting

When a defaulting borrower arranges to bring to the lender a buyer of the property who is offering a price below the mortgage balance, and the lender accepts, this is known as a

short sale

Reasons a deficiency judgment seldom is pursued include: Multiple select question. some states do not always permit deficiency judgments lenders underestimate the value of the deficiency judgment option a defaulting borrower usually has few, if any, financial resources nonresidential loans usually are nonrecourse loans

some states do not always permit deficiency judgments a defaulting borrower usually has few, if any, financial resources nonresidential loans usually are nonrecourse loans

The Home Ownership and Equity Protection Act (HOEPA) was enacted out of concern for abuse and predatory practices in _________ mortgage lending. Multiple choice question. second home subprime commercial

subprime