QFA – Loans verified answer questions
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: Correct Answer-a lender offering a loan to a
borrower, on condition that the borrower uses some other financial
service of the lender.
Title documents refer to: Correct Answer-the documents used to record
the transfer of a property from one person to another.
The Irish Credit Bureau typically holds a borrower's payment history
and profile going back over WHAT repayment period? Correct Answer-
24 months.
Frank arranges a remortgage with Nore Bank. This means that the
purpose of his
loan is MOST likely:
(i) to consolidate existing debt.
(ii) to release equity for non-debt related purposes.
(iii) to sell a portion of his interest in his property in return Correct
Answer-(i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: Correct
Answer-selling an interest in the property.
,Which of the following statements MOST accurately describes the term
'cost of credit' in relation to a loan? Correct Answer-It is the total
projected loan repayments over the term of the mortgage less the capital
borrowed.
Some years ago, Alice bought her
apartment for €275,000, and borrowed
€250,000. The mortgage outstanding on
her apartment today is €225,000. The
apartment now has a market value of
€175,000. Calculate Alice's negative equity. Correct Answer-€50,000
Rebecca takes out a lifetime mortgage of
€100,000 at an interest rate of 5.5%. She
pays no interest or capital repayments on
this loan. How many years would it take for
the loan outstanding to double? Correct Answer-13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: Correct Answer-are in danger of going into financial
difficulties and may not be able to make their mortgage repayments.
, The Code of Conduct on Mortgage Arrears offers protection to:
(i) owner occupiers who are in arrears.
(ii) property owners of any residential property.
(iii) owner occupiers, whilst not yet experiencing financial difficulty, are
in danger of going into arrears. Correct Answer-(i) (iii) only
Mortgage arrears arise: Correct Answer-as soon as an individual fails to
make a full mortgage repayment as outlined in their contract.
What document would a lender use to
assess a borrower's financial situation
when reviewing alternative repayments
arrangements? Correct Answer-A standard financial statement
Under the Code of Conduct on Mortgage
Arrears, a lender can impose further
charges and/or surcharges on arrears
arising on a mortgage account where: Correct Answer-the borrower is not
co-operating
A borrower would be deemed to be noncooperating if they:
(i) refuse to engage with the lender.
Under the Consumer Credit Act, 1995,
linking services is prohibited. The term
linking services refers to: Correct Answer-a lender offering a loan to a
borrower, on condition that the borrower uses some other financial
service of the lender.
Title documents refer to: Correct Answer-the documents used to record
the transfer of a property from one person to another.
The Irish Credit Bureau typically holds a borrower's payment history
and profile going back over WHAT repayment period? Correct Answer-
24 months.
Frank arranges a remortgage with Nore Bank. This means that the
purpose of his
loan is MOST likely:
(i) to consolidate existing debt.
(ii) to release equity for non-debt related purposes.
(iii) to sell a portion of his interest in his property in return Correct
Answer-(i) and (ii) only.
A remortgage would NOT normally be used for the purpose of: Correct
Answer-selling an interest in the property.
,Which of the following statements MOST accurately describes the term
'cost of credit' in relation to a loan? Correct Answer-It is the total
projected loan repayments over the term of the mortgage less the capital
borrowed.
Some years ago, Alice bought her
apartment for €275,000, and borrowed
€250,000. The mortgage outstanding on
her apartment today is €225,000. The
apartment now has a market value of
€175,000. Calculate Alice's negative equity. Correct Answer-€50,000
Rebecca takes out a lifetime mortgage of
€100,000 at an interest rate of 5.5%. She
pays no interest or capital repayments on
this loan. How many years would it take for
the loan outstanding to double? Correct Answer-13 years.
Arthur and Mary find themselves in a prearrears
situation on their housing loan. This
means they: Correct Answer-are in danger of going into financial
difficulties and may not be able to make their mortgage repayments.
, The Code of Conduct on Mortgage Arrears offers protection to:
(i) owner occupiers who are in arrears.
(ii) property owners of any residential property.
(iii) owner occupiers, whilst not yet experiencing financial difficulty, are
in danger of going into arrears. Correct Answer-(i) (iii) only
Mortgage arrears arise: Correct Answer-as soon as an individual fails to
make a full mortgage repayment as outlined in their contract.
What document would a lender use to
assess a borrower's financial situation
when reviewing alternative repayments
arrangements? Correct Answer-A standard financial statement
Under the Code of Conduct on Mortgage
Arrears, a lender can impose further
charges and/or surcharges on arrears
arising on a mortgage account where: Correct Answer-the borrower is not
co-operating
A borrower would be deemed to be noncooperating if they:
(i) refuse to engage with the lender.
