Principles of Real Estate Chapter 9
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 All of the above
An oversupply plus lessened or decreased demand creates a...?
Buyer's Market
A loan whereby there is NO government participation or cooperation is known as a...?
Conventional
Which of the following is an example of unsecured debt...?
Credit Card
The overall desire for a product or service is known as...?
Demand
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
That amount borrowed that is displayed on the promissory note is known as...?
Face Value
Which of the following institutions are active in the secondary mortgage market...?
Fannie Mae Ginnie Mae Freddie Mac .All of the above
An increase in money and credit relative to available goods that results in higher prices is known as...?
Inflation
The cost of borrowing capital, usually expressed as a percentage is known as...?
Interest Rate
Which of the following is an example of a debt instrument...?
Lease Note Mortgage All of the above
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
A broker who arranges a mortgage loan between a lender and a borrower for a fee is referred to as a...?
Mortgage Broker
A one-time premium paid at the closing pursuant to the purchase is known as...?
Mortgage Insurance Premium
A penalty for paying off a loan before its maturity date is known as a...?
Prepayment Penalty
The marketplace whereby loans are originated is referred to as the...?
Primary Mprtgage Market
A term used to denote that the real estate has been foreclosed upon is referred to as...?
REO Real Estate Owned
Two or more consecutive quarters of negative growth is known as a...?
Recession
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
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 scarcity of supply combined with strong demand creates a...?
Seller's 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
The amount of a certain good or service that is available in the market is known as...?
Supply
The annual percentage rate is always greater than the interest rate...?
True
1. A loan whereby there is government participation or cooperation is known as a...?
Unconventional
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
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
A return on an investment is known as...?
Yield