REE 3043 EXAM 2 EXAM QUESTIONS WITH CORRECT VERIFIED ANSWERS | 100% PASS (A+ CERTIFIED)

REE 3043 EXAM 2 EXAM QUESTIONS WITH CORRECT VERIFIED ANSWERS | 100% PASS (A+ CERTIFIED)For most mortgage loans on commercial real estate, the right of prepayment is constrained through a prepayment penalty. Which of the following types of prepayment penalties requires a borrower to provide the lender with some combination of U.S. Treasury securities that will serve to replace the cash flows of the loan being paid off? Answer Defeasance prepayment penalty Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage? Answer Prepayment penalty Which of these statements is true about mortgage loans for income producing real estate? Answer They usually are partially amortizing loans They often have a prepayment penalty They often are nonrecourse loans They are usually fixed rate mortgages The difference between judicial foreclosure and power of sale in the treatment of defaulted mortgages can be significant. Select all of the following statements regarding power of sale that are true. Answer The power of sale treatment is faster than judicial foreclosure It is less costly for power of sale to be employed than judicial foreclosure. Typically, lenders must give proper legal notice to the borrower, advertise the sale property, and allow a required passage of time before the sale. Certain mortgage loans contain a due-on-sale clause, which gives the lender the right to terminate the loan at sale of the property. Which of the following types of loans usually contain a due-on-sale clause? Answer Conventional home loan Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of the following (select all that apply): Answer Offer credit counseling Allow short sale to a third party Defer or forgive some of the past-due debt When a borrower defaults on the payment requirements of a loan, there are several options that the lender has at its disposal. When the lender allows the borrower simply to convey the property to the lender rather than pursuing a court supervised process of terminating all of the borrower's claims of ownership of the property, this is commonly referred to as: Answer Deed in lieu of foreclosure A type of loan that has grown in volume in recent years which has raised concerns about predatory lending practices is the: Answer Subprime mortgage When a buyer of a property with an existing mortgage loan acquires the property without signing the note for an existing loan the buyer is acquiring the property: Answer Subject to the mortgage The element of an adjustable interest rate that is the "moving part" is the: Answer Index Which statement is correct about the right of prepayment of a home mortgage loan? Answer Most home mortgage loans have the right of prepayment without charge, but not all, and the borrower should check the loan carefully