Exam (elaborations)
WRA Ch. 11 (Financing) Questions & answers with Complete solutions | Latest edition
WRA Ch. 11 (Financing) Questions & answers with Complete solutions | Latest edition
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WRA Ch. 11 (Financing)Acceleration Clause: - CORRECT ANSWER-A clause within a mortgage
permitting a lender to accelerate the amount due upon default and declare the
entire balance due.
Conventional Loan: - CORRECT ANSWER-Financing that does not give the
lender the added security of a government guarantee or insurance.
Non-Conforming Loans: - CORRECT ANSWER-Loans that do not conform to the
guidelines of conventional loans.
Foreclosure: - CORRECT ANSWER-A legal process used when a borrower
defaults on a debt.
Mortgagee: - CORRECT ANSWER-Lender.
Federal Housing Administration (FHA): - CORRECT ANSWER-A government
agency that insures mortgage loans for financial institutions against loss in the
event of foreclosure.
Amortization: - CORRECT ANSWER-The gradual satisfaction of a debt through
systematic payments of principal and interest over a predetermined period.
Rural Housing Loan: - CORRECT ANSWER-A loan program under the
Department of Agriculture designed to meet the needs of low-income and
moderate-income rural residents to purchase, construct, repair, or relocate a
dwelling and related facilities.
Balloon Payment: - CORRECT ANSWER-A lump-sum payment due at the end of
a mortgage contract period.
Deed in Lieu of Foreclosure: - CORRECT ANSWER-A borrower deeds the
property to the lender in full or partial payment of the mortgage debt.
, Primary Market: - CORRECT ANSWER-The market where loans are originated
and sold.
Mortgagor: - CORRECT ANSWER-Borrower.
Bridge Loan: - CORRECT ANSWER-A residential financing arrangement in
which the buyer of a new home borrows money and gives a second mortgage on
the buyer's unsold home to fund the acquisition of a new home.
Reverse Mortgage: - CORRECT ANSWER-A loan program to provide older
homeowners with monthly payments by permitting the homeowner to withdraw
equity from the home.
Private Mortgage Insurance: - CORRECT ANSWER-An insurance policy written
to insure a portion of a mortgage amount for a borrower.
Strict Foreclosure: - CORRECT ANSWER-A method of foreclosure where the
seller sues the defaulted buyer for possession of the property.
Deficiency Judgment: - CORRECT ANSWER-A judgment against a person when
the sale of a person's property is not sufficient to satisfy the mortgage debt.
Adjustable Rate Loan: - CORRECT ANSWER-A loan with a fluctuating interest
rate.
Triggering Terms: - CORRECT ANSWER-Advertising phrases that may not be
used unless all of the terms of the loan are disclosed in the advertisement.
Discount Point: - CORRECT ANSWER-Prepaid interest that is collected at
closing.
Creditor: - CORRECT ANSWER-As defined by Regulation Z, a party who
arranges for or extends credit more than 25 times a year or more than 5 times a
year if the transaction is secured by a dwelling.
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