Real Estate Finance – Champions Questions & Answers 100% Correct!!
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Course
Real Estate Finance champions
Institution
Real Estate Finance Champions
Mortgage - ANSWERSA pledge of real property as security for a debt.
Deed of Trust - ANSWERSA three party loan instrument - borrower, lender and trustee.
Note, Promissory Note - ANSWERSA personal promise to repay a debt.
Mortgagor - ANSWERSBorrower under a mortgage
Mortgagee - ANSWERSLen...
Real Estate Finance – Champions
Questions & Answers 100% Correct!!
Mortgage - ANSWERSA pledge of real property as security for a debt.
Deed of Trust - ANSWERSA three party loan instrument - borrower, lender and trustee.
Note, Promissory Note - ANSWERSA personal promise to repay a debt.
Mortgagor - ANSWERSBorrower under a mortgage
Mortgagee - ANSWERSLender under a mortgage
Beneficiary - ANSWERSLender under a deed of trust
Trustor - ANSWERSBorrower under a deed of trust
Trustee - ANSWERSA third party under a deed of trust who acts as an agent for the
lender
Power of Sale - ANSWERSA clause in a deed of trust allowing non-judicial foreclosure
Non-judicial foreclosure - ANSWERSForeclosure that does not require court
proceedings or a judgment of foreclosure - the result of power of sale clause in a deed
of trust
Hypothecation - ANSWERSThe action of pledging real property as security for a debt
Acceleration Clause - ANSWERSA clause in a mortgage allowing the lender to declare
the whole amount of the principal due and payable in the event of default by the
borrower.
Alienation Clause - ANSWERS"Due on Sale" clause stating that the balance of the debt
becomes due if the property is sold by the mortgagor
Defeasance Clause - ANSWERSA clause stating that the lien on the property is
defeated when the debt is repaid
Escalation Clause - ANSWERSA clause allowing the lender to raise the existing interest
rate - although most often associated with an Adjustable Rate Mortgage, it can be used
to overcome an alienation clause
, Prepayment Clause - ANSWERSA clause stating that the borrower can pay the entire
amount or the stated amount prior to the due date in the note and whether there will be
a penalty associated with that prepayment.
Subordination Clause - ANSWERSA clause allowing a lender to move to or take a lower
lien position
Assumption Clause - ANSWERSA clause outlining the obligations of the original
borrower and a new borrower in the event the loan is assumed
Straight Assumption - ANSWERSA new borrower assumes the payments and liability
on an existing loan and usually releasing the original borrower from liability
Assumption "subject to" - ANSWERSA new borrower assumes the payments but not
the liability on an existing loan - the original borrower remains liable
FHA - ANSWERSFederal Housing Administration - aids in home financing by insuring
high LTV loans with more lenient qualifying ratios.
MIP - ANSWERSMortgage Insurance Premium - insurance on the FHA loan - insures
the whole loan
VA - ANSWERSVeterans Admin - assists veterans in the purchase of housing by
guaranteeing loans.
DD 214 - ANSWERSVeterans discharge papers - provided to demonstrate eligibility for
a VA loan
Certificate of Eligibility - ANSWERSEvidence of VA approval of a qualified veteran for a
VA loan
CRV - ANSWERSVA appraisal - Certificate of Reasonable Value
Funding Fee - ANSWERSA fee required to be paid by the buyer, seller or included in
the loan at closing on all VA loans
Amortization - ANSWERSThe repayment or satisfaction of a debt by installment
payments of principal and interest on a regular basis
Conventional Loan - ANSWERSA loan that is neither federally insured nor guaranteed -
a private sector loan
Fixed Rate Amortized Loan - ANSWERSA loan with equal regular payments of principal
and interest until the debt is fully repaid or amortized
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