WRA FINAL PAPER TESTED QUESTIONS
WITH DETAILED SOLUTIONS STUDY
MATERIAL
●● Conventional Loan:
Answer: Financing that does not give the lender the added security of a
government guarantee or insurance.
●● Non-Conforming Loans:
Answer: Loans that do not conform to the guidelines of conventional
loans.
●● Foreclosure:
Answer: A legal process used when a borrower defaults on a debt.
●● Mortgagee:
Answer: Lender.
●● Federal Housing Administration (FHA):
Answer: A government agency that insures mortgage loans for financial
institutions against loss in the event of foreclosure.
,●● Amortization:
Answer: The gradual satisfaction of a debt through systematic payments
of principal and interest over a predetermined period.
●● Rural Housing Loan:
Answer: A loan program under the Department of Agriculture designed
to meet the needs of low-income and moderate-income rural residents to
purchase, construct, repair, or relocate a dwelling and related facilities.
●● Balloon Payment:
Answer: A lump-sum payment due at the end of a mortgage contract
period.
●● Deed in Lieu of Foreclosure:
Answer: A borrower deeds the property to the lender in full or partial
payment of the mortgage debt.
●● Primary Market:
Answer: The market where loans are originated and sold.
●● Mortgagor:
Answer: Borrower.
, ●● Bridge Loan:
Answer: A residential financing arrangement in which the buyer of a
new home borrows money and gives a second mortgage on the buyer's
unsold home to fund the acquisition of a new home.
●● Reverse Mortgage:
Answer: A loan program to provide older homeowners with monthly
payments by permitting the homeowner to withdraw equity from the
home.
●● Private Mortgage Insurance:
Answer: An insurance policy written to insure a portion of a mortgage
amount for a borrower.
●● Strict Foreclosure:
Answer: A method of foreclosure where the seller sues the defaulted
buyer for possession of the property.
●● Deficiency Judgment:
Answer: A judgment against a person when the sale of a person's
property is not sufficient to satisfy the mortgage debt.
●● Adjustable Rate Loan:
Answer: A loan with a fluctuating interest rate.
WITH DETAILED SOLUTIONS STUDY
MATERIAL
●● Conventional Loan:
Answer: Financing that does not give the lender the added security of a
government guarantee or insurance.
●● Non-Conforming Loans:
Answer: Loans that do not conform to the guidelines of conventional
loans.
●● Foreclosure:
Answer: A legal process used when a borrower defaults on a debt.
●● Mortgagee:
Answer: Lender.
●● Federal Housing Administration (FHA):
Answer: A government agency that insures mortgage loans for financial
institutions against loss in the event of foreclosure.
,●● Amortization:
Answer: The gradual satisfaction of a debt through systematic payments
of principal and interest over a predetermined period.
●● Rural Housing Loan:
Answer: A loan program under the Department of Agriculture designed
to meet the needs of low-income and moderate-income rural residents to
purchase, construct, repair, or relocate a dwelling and related facilities.
●● Balloon Payment:
Answer: A lump-sum payment due at the end of a mortgage contract
period.
●● Deed in Lieu of Foreclosure:
Answer: A borrower deeds the property to the lender in full or partial
payment of the mortgage debt.
●● Primary Market:
Answer: The market where loans are originated and sold.
●● Mortgagor:
Answer: Borrower.
, ●● Bridge Loan:
Answer: A residential financing arrangement in which the buyer of a
new home borrows money and gives a second mortgage on the buyer's
unsold home to fund the acquisition of a new home.
●● Reverse Mortgage:
Answer: A loan program to provide older homeowners with monthly
payments by permitting the homeowner to withdraw equity from the
home.
●● Private Mortgage Insurance:
Answer: An insurance policy written to insure a portion of a mortgage
amount for a borrower.
●● Strict Foreclosure:
Answer: A method of foreclosure where the seller sues the defaulted
buyer for possession of the property.
●● Deficiency Judgment:
Answer: A judgment against a person when the sale of a person's
property is not sufficient to satisfy the mortgage debt.
●● Adjustable Rate Loan:
Answer: A loan with a fluctuating interest rate.
