Tuesday, November 5, 2013

Chapter 10: Lending Activity

By Jordan Naffa

True & False Questions:
1.) The ratio of DSCR = Monthly NOI / Monthly Debt Service
T/ F
2.) The L/V ratio = Mortgage Amount / Collateral Market Value
            T/ F
3.) Stable monthly income (SMI) is defined as a mortgagor’s yearly income.
T/ F
4.) The term equitable title is the right to legal title if all obligations of the promissory note are fulfilled.
T/ F
5.) Unsecured debt is a personal promise to pay back a loan.
T/ F

Question & Answer:
6.) The adjustable rate mortgage is
            a. A mortgage rate that is given to an individual as a loan.
            b. A variable rate or payment mortgage that adjusts to a specified index periodically.
c. A fixed mortgage rate.
d. None of the above

7.) The teaser rate is the ____________ offered as a mortgage as enticement or tease for a mortgagor to select an ARM.
a. high rate
            b. median rate
c. low rate
d. Both a and b

8.) A charge of____________of the mortgage amount that is paid by the mortgagor to the mortgagee at the loan ordination.
a. 3%  
            b. 5% 
c. 1%
d. None of the above

1.) T,           2.) T,           3.) F,            4.) T,             5.) T,            6.) b,            7.) c,            8.) c

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