Chapter 9
An oversupply plus lessened or decreased demand creates a...?
buyer's market
The overall desire for a product or service is known as...?
demand
The amount of a certain good or service that is available in the market is known as...?
supply
The value of an asset minus the debt is known as...?
true
A loan whereby there is government participation or cooperation is known as a...?
unconventional loan
An individual at a lending institution who determines credit worthiness in order to qualify an applicant for a loan is referred to as a...?
underwriter
A return on an investment is known as...?
yield
Which of the following is a personal defense that cannot be raised against a holder in due course...?
Breach of Contract or Warranty Lack of Consideration Fraud
Which of the following is an example of unsecured debt...?
Credit Card
That amount borrowed that is displayed on the promissory note is known as...?
Face Value
A loan whereby there is NO government participation or cooperation is known as a...?
conventional loan
The return or recapture of the original investment amount is known as...?
return OF investment
Any additional amount after the return of investment is referred to as...?
return ON investment
A scarcity of supply combined with strong demand creates a...?
seller's market
A penalty for paying off a loan before its maturity date is known as a...?
prepayment penalty
An interest rate in a real estate loan which by the terms of the note varies upward and downward over the term of the loan depending on money market conditions is known as...?
variable interest rate
The cost of borrowing capital, usually expressed as a percentage is known as...?
interest rate
A broker who arranges a mortgage loan between a lender and a borrower for a fee is referred to as a...?
mortgage broker
An acceleration clause granting the lender the right to demand full payment of the mortgage upon a sale of the property is referred to as a...?
due on sale clause
The value of an asset minus the debt is known as...?
equity
The marketplace whereby loans are originated is referred to as the...?
primary mortgage market
Two or more consecutive quarters of negative growth is known as a...?
recession
A term used to denote that the real estate has been foreclosed upon is referred to as...?
reo real estate owned
Which of the following institutions are active in the secondary mortgage market...?
fannie mae ginnie mae freddie mac
Which of the following is an example of a debt instrument...?
lease note mortgage
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is referred to as the...?
secondary mortgage market
A seller's attempt to sell real estate whereby the liens are greater than the value of the property is known as a...?
short sale
A one-time premium paid at the closing pursuant to the purchase is known as...?
mortgage insurance premium
A person whose principle business is the originating, financing, closing, selling and servicing of loans secured by real property for institutional lenders on a contractual basis is referred to as a...?
mortgage banker
An increase in money and credit relative to available goods that results in higher prices is known as...?
inflation