ch 8
How long before the consummation of the loan the credit must provide the Closing Disclosure?
3 days
The payment Of a loan in equal installments that includes both interest and principal reduction is referred as:
Amortized loan
A clause in a loan that allows the lender to call the balance due in the event of default is known
An acceleration clause
A benefit or benefits associated with investing In real estate include
Both the use of leverage and a forced savings program
What is the form that integrates and replaces the existing Settlement Statement (HUD-1) and the final truth-in-lending disclosure?
Closing disclosure
The security instruments of choice in California is the
Deed Of trust
The rate at which the members banks borrow money from the Federal Reserve Is known as the
Discount rate
The federal agency that Insures savings accounts is the
FDIC
Pledging some asset as collateral to be used in connection with a loan is known as
Hypothecation
When a lender makes a loan to two or more borrowers, the lender would be well advised to include which of the following clauses In the promissory note
Joint and several liability clause
In the event the mortgagor’s default before final payment, the mortgagee's remedy is
Judicial Foreclosure
What form integrates and replaces the existing Good Faith Estimate (GFE) and the initial truth-in-lending disclosure?
Loan Estimate
An ARM is a
Mortgage in which the interest rate charges periodically based on an index
What is the redemption period following a trustee's sale
No redemption period
This is the borrower's promise to pay the amount borrowed
Promissory note
Real Estate loans in California generally are made using two instruments, which are:
Promissory note and a security instrument
The document issued to a trustor upon full payment of a promissory note secured by a trust deed is known as:
Reconveyance deed
A significant difference between a mortgage and a trust deed is
The foreclosure process in a mortgage would give the borrower redemption rights, whereas foreclosure through a trustee's sale would not have such redemption rights
The rate of interest indicated within a promissory note is known as
The nominal rate
The type of loan that allows a borrower to borrow additional funds without rewriting the loan is known as:
open end loan