Mortgage Industry Trivia Questions Quiz

31 Questions | Total Attempts: 500

SettingsSettingsSettings
Please wait...
Mortgage Industry Trivia Questions Quiz

.


Questions and Answers
  • 1. 
    What does GSE stand for?
    • A. 

      Government Sponsored Equality

    • B. 

      Ginnie Sponsored Equity

    • C. 

      Government Sponsored Enterprises

  • 2. 
    What is a Primary Market?
    • A. 

      The market is made up of those who create and Market mortgages. Banks, Mortgage banking lenders, Mortgage brokers, and loan originators.

    • B. 

      The market is made up of the entities that insure, guarantee and purchase the mortgages.

    • C. 

      Market are not made up of entities that insure, guarantee and purchase the mortgages.

    • D. 

      The market is not made up of those who create and market mortgages. Banks, Mortgage banking lenders, Mortgage brokers, and their loan originators.

  • 3. 
    The __________________ Market is made up of the entities that insure, guarantee and purchase the mortgages.
  • 4. 
    ____________ pays 100 cents on the dollar to purchase.
    • A. 

      Par Rate

    • B. 

      YSP

    • C. 

      Prime Rate

    • D. 

      Market Rate

    • E. 

      Interest Rate

    • F. 

      Secondary Market

  • 5. 
    YSP stands for ____________________________________.
    • A. 

      Yearly Sales Percentage

    • B. 

      Yield Spread Premium

    • C. 

      Yearly Spread Prime

    • D. 

      Yearly Sales Premium

  • 6. 
    A Premium sale actually generates a profit to the lender and gives him/her more money than he/she loans out.  That premium is called _________________ .
    • A. 

      Discount

    • B. 

      Par

    • C. 

      YSP

    • D. 

      Revenue

  • 7. 
    Rates sold above par is considered trading at a  __________________.
  • 8. 
    ___________________ is a claim against property held by one who is not the legal owner of the property that affect the physical condition of the property may be imposed on a parcel of land but do not prevent the owner from using, selling or otherwise transferring the estate.
  • 9. 
    Which of the following describes Encumbrances?
    • A. 

      Easements

    • B. 

      Public and Private restrictions

    • C. 

      Encroachments

    • D. 

      Utility Easements

    • E. 

      Financial Encumbrance called lien

    • F. 

      Your home computer

    • G. 

      Your home sterio

    • H. 

      Your TV

    • I. 

      Mailbox

  • 10. 
    A ________ is defined as a right of property, either real or personal, being held by one party for the benefit of another.  The parties to trust include a trustor, who is the person that grants the rights to real estate to a trustee, who then holds the property in trust for a beneficiary.
  • 11. 
    In Real estate financing, when a trust deed is used, it is called a _______ or _________.  The beneficiary (lender) selects the trustee who secures title from the trustor (borrower) along with the ability to foreclose if needed.
  • 12. 
    ___________ transfers ownership or interest in real property from one person to another by a document, such as a deed, lease, or mortgage.
    • A. 

      Conveyancing

    • B. 

      Reconveyance

  • 13. 
    When someone has satisfied their lien on their property it is then considered a _________________________.
    • A. 

      Conveyancing

    • B. 

      ReConveyance

  • 14. 
    A __________________ is a promise to repay a debt.
  • 15. 
    A ________________ is the pledge of collateral to secure the loan.
  • 16. 
    The contract for Deed is what below
    • A. 

      Land Contract

    • B. 

      Real Estate Contract

    • C. 

      Contract for Sale

    • D. 

      Agreement For Deed

    • E. 

      Encumbrance for deed

    • F. 

      Installment Sale

    • G. 

      Property Auction

    • H. 

      Articles of Agreement

    • I. 

      Seller held Mortgage

  • 17. 
    A_______________ comes in many different forms.  A contract for deed is a complete financing and sales contract agreed upon and executed by a buyer and a seller.  This means that the contract for deed does not have a an attached note.
    • A. 

      Contract for deed

    • B. 

      Deed in lieu

    • C. 

      Property deed

  • 18. 
    _________ penalty means the borrower would be liable for a penalty during the set timeframe for prohibited prepayment on Mortgaged Property and the property cannot be sold or refinanced during that time period.
    • A. 

      Hard

    • B. 

      Soft

    • C. 

      Medieum

  • 19. 
    _____________________________ the seller is financing the sale of the property.  The buyer agrees to take and maintain possession of the property as long as the terms of the agreement are being met.
    • A. 

      Land Contract

    • B. 

      Contract for deed

    • C. 

      Deed of Contract

    • D. 

      Contract for deed arrangement

  • 20. 
    ________ penalty means the mortgaged property cannot be refinanced during the prohibited - prepayment timeframe.  But, it can be sold any time without becoming liable for a penalty.
    • A. 

      Hard

    • B. 

      Soft

    • C. 

      Medium

  • 21. 
    ____________________ Clause states that the entire balance of a mortgage/deed of trust may be called due and payable upon the sale or the transfer of property ownership on the property in which the mortgage is placed.  If the borrower violates this provision, the lender has the ability to call the loan due and payable immediately.
    • A. 

      Acceleration Clause

    • B. 

      Santa Clause

    • C. 

      Due-on-Sale Clause

    • D. 

      Defeasance Clause

  • 22. 
    ____________________ Clause states that the entire balance of a mortgage/deed of trust may be called due and payable upon the sale or the transfer of property ownership on the property in which the mortgage is placed.  If the borrower violates this provision, the lender has the ability to call the loan due and payable immediately.
    • A. 

      Acceleration Clause

    • B. 

      Santa Clause

    • C. 

      Due-on-Sale Clause

    • D. 

      Defeasance Clause

  • 23. 
     ____________________________ Clause means the lender has the right to ask for all the funds to be due at a certain date if a payment is missed.  All defaults has its right.  For example FNMA/FHLMC states there has to be the following ___________, _____________, _____________,____________, ______________.
    • A. 

      Acceleration Clause, Default, action cure default, 30-day notice to cure, Statement that failure to cure will cause acceleration or foreclosure, right to reinstate.

    • B. 

      Due on Sale, Default, action cure default, 30-day notice to cure, Statement that failure to cure will cause acceleration or foreclosure, right to reinstate.

    • C. 

      Acceleration Clause, Default, action cure default, 30-day notice to cure, Statement that failure to cure will cause acceleration or foreclosure, right to reinstate.

    • D. 

      Exculpatory Clause, Default, action cure default, 30-day notice to cure, Statement that failure to cure will cause acceleration or foreclosure, right to reinstate.

  • 24. 
    _____________________ Mortgage established to create lien on title for creditors.  When the debt is paid off or canceled the owner gains full control over it.  Some states don't allow for a lien on the title.
    • A. 

      Acceleration Clause

    • B. 

      Due on Sale Clause

    • C. 

      Defeasance Clause

    • D. 

      ExCulpatory Clause

  • 25. 
    ________________________________ Clause is that part of a written agreement that relieves one party to the agreement of liability as a result of actions performed in the course of executing the terms of the contract.  In a trust agreement, an exculpatory clause relieves the trustee of liability resulting from any act performed in good faith under the trust agreement.  Example landlord is relieved of personal injury to a tenant.
    • A. 

      Due on Sale

    • B. 

      Exculpatory

    • C. 

      Acceleration

    • D. 

      Defeasance