Chapter 10 - M/C and T/F Questions

1.         When a mortgage loan is due in full due to default, the condition in the loan documents indicates what kind of clause?

            a.         Prepayment clause

            b.         Due on sale clause
            c.         Acceleration clause
            d.         None of the above

 2.         What is the borrower referred to in the loan documents?

            a.         Grantor

            b.         Grantee
            c.         Mortgagee
            d.         Mortgagor

 3.         Who is transferred the ‘Deed of Trust’ document?

            a.         Trustor

            b.         Trustee
            c.         Mortgagor
            d.         Mortgagee

 4.         Who is transferred the ‘Deed of Reconveyance’ document?

            a.         Trustor

            b.         Trustee
            c.         Mortgagor
            d.         Mortgagee

 5.         Collateral is the significant difference unsecured debt and secured debt.

            True

            False
 

6.         An investor’s return is also referred to as the lender’s effective yield?

            True

            False

7.         Evaluating the risk associated with a lender’s loan package to a Mortgagor is processed by the underwriter.

            True

            False

Answers:         1) c, 2) d, 3) b, 4) c, 5) True, 6) True, 7) True