Chapter 10 Lending Activity

1. Due on sale clause; A requirement that the entire loan balance must be paid off at the mortgage contract rate.

A. True
B. False

2.  Secured debt; A personal promise to pay back a loan.

A. True
B. False

3. Overall caps; A limit on a contract interest rate change over an adjustment period

A. True
B. False

4. Unsecured debt; A personal promise to pay back a loan backed up with collateral.
A. True
B. False

5. A credit report can be downloaded immediately online and costs around $ 30

A. True
B. False

6. Which one of the following is NOT the credit analysis that begins with a credit report from one or more of the three major credit-reporting agencies?
A. Equifax
B. Trans Union
C. Experian
D. Your Employer

7. What to bring when meeting with a mortgage originator.
A. Employment contract
B. Minimum of 2 years of tax returns
C. Pay stubs from at least the last 3 months of pay
D. All of the above

8. _____ Secondary income may include

A. Part-time employment
B. bonuses
C. A&B
D. None of the above

Answers: 1) T, 2) F, 3) F, 4) F, 5) T, 6) D, 7) D, 8) C