Legal Aspects Questions #10 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
To be a negotiable instrument, a note or draft need NOT be
A. A sum certain
B. Signed by the payee
C. An unconditional promise or order
D. In writing - CORRECT ANSWER - B. signed by the payee
Refinancing without a discernible benefit to a borrower is
A. Prohibited by the Service members Civil Relief Act of 2003
B. A violation of the Truth in Savings Act
C. Considered predatory lending
D. A violation of the Mortgage Forgiveness Debt Relief Act of 2007 - CORRECT
ANSWER - C. Considered Predatory Lending
A maker could NOT use which as a defense against a holder in due course?
A. A raised not
B. Prior payment of the maker to a previous holder
C. A note given for an illegal purpose
D. Legal incapacity of the maker - CORRECT ANSWER - B. Prior payment of the maker
to a previous holder
The usury law interest regulations do NOT apply to
, A. Seller purchase-money financing
B. Cash loans
C. Loans made or arranged by mortgage loan brokers
D. Both A & C - CORRECT ANSWER - D. Both A & C
For loans on one to four residential units not made or arranged by a real estate broker,
prepayment charges can
A. Be charged only for five years
B. Not be charged on payments up to 20 percent of the original loan in one year
C. Not exceed six months' interest
D. Be all the above - CORRECT ANSWER - D. Be all the above
The maximum period after a judicial foreclosure sale during which a mortgagor has the right to
possession is
A. 30 days
B. 90 days
C. 6 months
D. 1 year - CORRECT ANSWER - D. 1 year
Which is more closely related to trust deeds than to mortgages?
A. Redemption rights after sale
B. Nonjudicial sale
C. Deficiency judgements
D. Legal title with borrower - CORRECT ANSWER - B. Nonjudicial sale
ACTUAL Exam Questions and CORRECT
Answers
To be a negotiable instrument, a note or draft need NOT be
A. A sum certain
B. Signed by the payee
C. An unconditional promise or order
D. In writing - CORRECT ANSWER - B. signed by the payee
Refinancing without a discernible benefit to a borrower is
A. Prohibited by the Service members Civil Relief Act of 2003
B. A violation of the Truth in Savings Act
C. Considered predatory lending
D. A violation of the Mortgage Forgiveness Debt Relief Act of 2007 - CORRECT
ANSWER - C. Considered Predatory Lending
A maker could NOT use which as a defense against a holder in due course?
A. A raised not
B. Prior payment of the maker to a previous holder
C. A note given for an illegal purpose
D. Legal incapacity of the maker - CORRECT ANSWER - B. Prior payment of the maker
to a previous holder
The usury law interest regulations do NOT apply to
, A. Seller purchase-money financing
B. Cash loans
C. Loans made or arranged by mortgage loan brokers
D. Both A & C - CORRECT ANSWER - D. Both A & C
For loans on one to four residential units not made or arranged by a real estate broker,
prepayment charges can
A. Be charged only for five years
B. Not be charged on payments up to 20 percent of the original loan in one year
C. Not exceed six months' interest
D. Be all the above - CORRECT ANSWER - D. Be all the above
The maximum period after a judicial foreclosure sale during which a mortgagor has the right to
possession is
A. 30 days
B. 90 days
C. 6 months
D. 1 year - CORRECT ANSWER - D. 1 year
Which is more closely related to trust deeds than to mortgages?
A. Redemption rights after sale
B. Nonjudicial sale
C. Deficiency judgements
D. Legal title with borrower - CORRECT ANSWER - B. Nonjudicial sale
