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