Intro to mortgage lending

Question 1

The mortgager is the:

Answer 1

Borrower

Question 2

The mortgagee is the:

Answer 2

Lender

Question 3

Mortgages are a

Answer 3

Voluntary Lien

Question 4

What establishes a lien position?

Answer 4

date and time of recording

Question 5

Junior mortgages is a

Answer 5

Voluntary lien

Question 6

What is NOT a promise by the mortgager?

Answer 6

Obey all state and county laws

Question 7

What is the enforcement of a lien?

Answer 7

Foreclosure

Question 8

A lender may choose NOT to take legal action upon default and this is known as:

Answer 8

Forbearance

Question 9

Which clause allows the lender to increase the interest rate:

Answer 9

Escalation clause

Question 10

Which of the following is NOT beneficial to a developer?

Answer 10

Development clause

Question 11

Which is NOT essential for a valid contract:

Answer 11

$2,000 in reserves

Question 12

Tenancy in common does NOT have

Answer 12

right of survivorship

Question 13

Joint tenancy does NOT have

Answer 13

Only one individual’s name on title

Question 14

How many days after settlement does the lender have to send the satisfaction of mortgage letter?

Answer 14

60 days

Question 15

When there is no new note and the original buyer retains all the liability, this is known as transferring title by:

Answer 15

Subject to the mortgage

Question 16

When there is a new note and the original borrower is released from all liability, this is known as transferring title by:

Answer 16

Novation

Question 17

The assignor:

Answer 17

Transfers contract rights

Question 18

What is NOT an involuntary lien?

Answer 18

Mortgage lien

Question 19

The pledging of property as collateral for the loan:

Answer 19

Hypothecation

Question 20

The conveyer of the deed is the:

Answer 20

Grantor

Question 21

The receiver of the deed is the:

Answer 21

Grantee

Question 22

Which document is NOT recorded?

Answer 22

Note

Question 23

The borrowers IOU is the:

Answer 23

Note

Question 24

A clause in some mortgages which allows subsequent mortgages on the same property to have a higher claim than the current mortgage is a:

Answer 24

Subordination clause

Question 25

Which of the following does include the right of survivorship?

Answer 25

Joint tenancy

Question 26

The document conveying title from one party to another and guaranteeing that the title is good is known as a

Answer 26

Warranty deed

Question 27

A mortgage lien on an entire tract of land is known as a

Answer 27

Blanket mortgage

Question 28

Liens which are subsequent to the first recorded mortgage lien are known as

Answer 28

Junior liens