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.