FIN 3306: Exam 3 (Test Questions) guided with complete solution & verified answers 2024/25 update
4 views 0 purchase
Course
FIN 3306
Institution
FIN 3306
The element of an adjustable interest rate that is the "moving part" is the:
A. Teaser rate
B. Index
C. Margin
D. Adjustment period - correct answer B. Index
Which of these aspects of a mortgage loan will be addressed in the note rather
than in the mortgage?
A. Late fee
B. Escrow requirem...
FIN 3306: Exam 3 (Test Questions) guided with complete
solution & verified answers 2024/25 update
The element of an adjustable interest rate that is the "moving part" is the:
A. Teaser rate
B. Index
C. Margin
D. Adjustment period - correct answer ✔ B. Index
Which of these aspects of a mortgage loan will be addressed in the note rather
than in the mortgage?
A. Late fee
B. Escrow requirements
C. Takings
D. Acceleration
E. Maintenance of property - correct answer ✔ A. late fee
A lender may reserve the right to require prepayment of a loan at any time they
see fit through a:
A. Taking clause
B. Acceleration clause
C. Demand clause
D. Escrow clause - correct answer ✔ C. Demand clause
When a buyer of a property with an existing mortgage loan acquires the property
without signing the note for the existing loan, the buyer is acquiring the property:
A. By assumption
B. By contract for deed
C. By default
D. Subject to the mortgage - correct answer ✔ D. Subject to the mortgage
1
,FIN 3306: Exam 3 (Test Questions) guided with complete
solution & verified answers 2024/25 update
Which of these points in mortgage loan would be addressed in the mortgage
(possibly in the note as well):
A. Loan amount
B. Interest rate
C. Late fees
D. Escrows - correct answer ✔ D. Escrows
To finance purchase of a property where the borrower, the property, or both fail
to qualify for standard mortgage financing, a common nonmortgage solution is
through the:
A. Subprime loan
B. Deed of trust
C. Unsecured loan
D. Contract for deed - correct answer ✔ D. Contract for deed
Ways that a lender may respond to a defaulted loan without resorting to
foreclosure include all of the following except:
A. Offer credit counseling
B. Allow short sale to a third party
C. Defer or forgive some of the part due payments
D. Accelerate the debt - correct answer ✔ D. Accelerate the debt
If the lender in a standard first mortgage wishes to foreclose cost effectively, it is
crucial to have which clause the mortgage:
A. Acceleration clause
B. Exculpatory clause
C. Demand clause
D. Defeasance clause - correct answer ✔ A. Acceleration clause
2
, FIN 3306: Exam 3 (Test Questions) guided with complete
solution & verified answers 2024/25 update
A common risk that frequently interferes with a lender's efforts to work out a
defaulted loan through either nonforeclosure means or foreclosure is:
A. Equity of redemption
B. Statutory right of redemption
C. Exculpatory clause
D. Bankruptcy - correct answer ✔ D. Bankruptcy
The characteristics of a borrower than can be considered by a lender in a
mortgage loan appreciation are limited by the:
A. Truth in lending act
B. Real estate settlement procedures act
C. Equal credit opportunity act
D. Home ownership and equal protect act - correct answer ✔ C. Equal credit
opportunity act
The real estate settlement procedures act does which of these:
A. Requires the use of a standard settlement statement for a mortgage loan
closing
B. Prohibits kickbacks between vendors of closing related services and lenders
C. Requires that a borrower receive a good faith estimate of closing costs shortly
after a loan application
D. Requires that the borrower be able to inspect the closing statement a day
before the actual closing
E. All the above - correct answer ✔ E. All the above
Foreclosure tends to be quickest in states that:
A. Are titles theory states
B. Are lien theory states
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EXPERTIPS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
