FIN 3306: Exam 3 (Test Questions) guided with complete solution & verified answers 2024/25 update
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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
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