Unit 8 Quiz
Which of the following is NOT an institutional lender: (a)savings and loan. (b)insurance company. (c)mortgage company. (d)thrift.
(c)mortgage company.
Real estate loans generally include a promissory note and a: (a)purchase contract (b)settlement statement. (c)security instrument. (d)grant deed.
(c)security instrument.
An instrument by which property is hypothecated to secure the payment of debt or obligation is known as: (a)a sheriff's deed. (b)a reconveyance deed (c)an encroachment. (d)a mortgage.
(d)a mortgage.
The federal agency that insures savings accounts is the: (a)FDIC (b)FHLMC (c)FHA (d)FNMA
(a)FDIC
A provision that gives the lender the right to demand full payment of a mortgage upon sale of the property is: (a)a due-on-sale clause. (b)a partition clause. (c)a notice-of-sale. (d)an escalator clause.
(a)a due-on-sale clause.
Money is a medium of exchange as well as a measure of: (a)value. (b)intrinsic worth (c)credit. (d)investment potential.
(a)value.
The repayment of a loan in equal installments that includes both interest and principal reduction is referred to as: (a)a straight loan. (b)an amortized loan. (c)a mortgage loan. (d)a hard money loan.
(b)an amortized loan.
The cost of using money BEST describes: (a)credit (b)interest (c)a free market (d)an open market
(b)interest
RESPA regulates loans for which of the following? (a)Land subdivisions (b)Commercial property (c)One-to-four-unit family dwellings (d)Multiple family dwellings
(c)One-to-four-unit family dwellings
the security instrument of choice in California is the: (a)mortgage. (b)grant deed (c)deed of trust (d)quitclaim deed.
(c)deed of trust