Sunday, May 15, 2011

Chapter 10

Kasper Hovannisian


Chapter 10


1. A personal promise to pay back a loan is;

A) Secured debt

B) Collateral

C) Unsecured debt

D) Payment clause


2. A states view that a mortgage is simply a lien on real property

A) Lien theory

B) deed of trust

C) Title theory

D) Amortization


3. A document transferring legal title to a trustee is;

A) Deed of reconveyance

B) Deed of trust

C) Title theory

D) Amortization


4. A mortgage originator is a specialist who focuses on loan organization.

T/F


5. The gradual reduction of a debt through systematic principal repayments over the life of the loan is called debt service.

T/F This definition describes amortization


6. The pledge of property to back up a promise to pay is called collateral.

T/F


7. A reference to a mortgage is the promissory note clause creating a link to the mortgage and the collateral.

T/F


8. A personal promise to repay the loan backed up with collateral is unsecured debt.

T/F This is known as secured debt.

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