Section 14 Unit 1 Exam

A  They’re recorded at the lending bank’s main office.

B  Mortgages are not recorded; only deeds are.

C  They’re recorded at the real estate brokerage’s main office.

D  They’re recorded at the recorder’s office in the county where the property is located.

A  To cover the costs of processing an early payoff

B  To recover the money lost in anticipated interest

C  Because the lender is a subprime lender

D  To deter buyers from ever paying off their mortgage

A  Lenders don’t have to tell borrowers about prepayment penalties until the borrower’s payoff amount is received.

B  Prepayment penalties are illegal.

C  Lenders must disclose up front if they reserve the right to charge a prepayment penalty, and under what conditions a penalty will apply.

D  All loans involve prepayment penalties.

A  The interest rate will rise with the assumption

B  The entire loan balance may be due at once, and Tim won’t be able to assume it

C  Tim will have to accept existing terms of the loan

D  Janice will have to pay any loan assumption fee

A  Non-judicial

B  Strict

C  Judicial

D  Eviction

A  The trustee releases the mortgage that secured her mortgage loan.

B  The lender tells the trustee to release the title to Olivia.

C  The lender releases the deed of trust that secured her mortgage loan.

D  The lender releases the mortgage that secured her mortgage loan.

A  The prepayment penalty can be as much as 5% of the original loan balance.

B  The prepayment penalty can be as much as 30 days’ interest.

C  Lenders may not charge a prepayment penalty.

D  The lender can only charge a prepayment penalty if it was disclosed to the borrower.

A  Home equity line of credit

B  Subordinate mortgage

C  First mortgage

D  Junior mortgage