Vocabulary H

Question 1

Home equity loans

Answer 1

Loans that may be first, second or third mortgage with either a fixed or adjustable interest rate, which is secured (collateral) by equity in real estate

Question 2

Home Ownership And Equity Protection Act (HOEPA)

Answer 2

Enacted in 1994 as part of TRUTH IN LENDING ACT (TILA).

Study page 345

Question 3

Homestead exemptions

Answer 3

Intended to protect surviving spouse of homeowner from real estate taxes, general creditors, and other circumstances arising from death of a spouse

Question 4

HUD - 1

Answer 4

Form required by department of housing and Urban Development in covered property settlements, which is designed to standardize the presentation of settlement charge and payments for buyers and sellers

Pg 346

Question 5

Hypothecation

Answer 5

Common lending agreement where a borrower retains the rights to possess property while it serves as security (collateral) for a loan

Question 6

Illegal restrictive covenant

Answer 6

Contractual provision in deeds that violate the law (usually fair housing law); thus, are avoiding the unforeseeable