MORTGAGES AND LOANS EXAM
QUESTIONS AND ANSWERS
• A ------- is an individual or entity licensed by the New York Banking
Department to engage in the business of making residential
mortgage loans. Licensed and lends. -
correct answer ✅mortgage banker
• A-------- is a loan that constitutes a lien against the real property.
The mortgage is a two-party instrument between the lender and
borrower. -
correct answer ✅mortgage
The mortgage pledges a described property as security for the
repayment of a loan under certain terms and conditions.
• The borrower who gives the mortgage is called the ----- -
correct answer ✅mortgagor
The borrower retains the title (ownership) to the property, but this
title is ENCUMBERED by the LIEN created by the MORTGAGE in
favor of the lender. If the lender is not paid according to the terms
of the MORTGAGE and NOTE, the lender can foreclose the lien.
,MORTGAGES AND LOANS EXAM
QUESTIONS AND ANSWERS
• The lender who receives the mortgage is called the ------. -
correct answer ✅mortgagee
The lender requires additional security of the property itself as
collateral for the loan.
•------ - allows the lender to demand payment of the entire balance
remaining immediately due and payable if the borrower is in
default. -
correct answer ✅Acceleration clause
• --------entitles the lender to declare the principal balance
immediately due and payable if the borrower sells the property
during the mortgage term and makes the mortgage unassumable. -
correct answer ✅Alienation clause
• In making a mortgage, the lender requires the borrower to
sign--------providing evidence that a valid debt exists. -
correct answer ✅promissory note
•------------and up to the time a foreclosure sale is held, the
borrower has an equitable right to redeem his property by paying
, MORTGAGES AND LOANS EXAM
QUESTIONS AND ANSWERS
the principal amount of the debt, accrued interest, and lender costs
incurred in initiating the foreclosure. -
correct answer ✅Equity of Redemption After default,
• A -------- REFERS TO ANY MORTGAGE THAT IS SUBORDINATE TO
ANOTHER MORTGAGE. -
correct answer ✅JUNIOR MORTGAGE
• --------when a loan payment amount is not sufficient to cover
interest due, the shortfall added back into the principal, causing the
principal to grow larger after payment is made. -
correct answer ✅Negative amortization-
•--------the monthly payments are lower in the early years of the
mortgage term and increase at specified intervals until the payment
amount is sufficient to amortize the loan over the remaining term. -
correct answer ✅Graduated payment mortgage
• ---------two or more parcels of real estate are pledged as security
for payment of the mortgage debt. The blanket mortgage usually
contains a release clause that allows certain parcels of property to
be removed from the mortgage lien if the loan balance is reduced
QUESTIONS AND ANSWERS
• A ------- is an individual or entity licensed by the New York Banking
Department to engage in the business of making residential
mortgage loans. Licensed and lends. -
correct answer ✅mortgage banker
• A-------- is a loan that constitutes a lien against the real property.
The mortgage is a two-party instrument between the lender and
borrower. -
correct answer ✅mortgage
The mortgage pledges a described property as security for the
repayment of a loan under certain terms and conditions.
• The borrower who gives the mortgage is called the ----- -
correct answer ✅mortgagor
The borrower retains the title (ownership) to the property, but this
title is ENCUMBERED by the LIEN created by the MORTGAGE in
favor of the lender. If the lender is not paid according to the terms
of the MORTGAGE and NOTE, the lender can foreclose the lien.
,MORTGAGES AND LOANS EXAM
QUESTIONS AND ANSWERS
• The lender who receives the mortgage is called the ------. -
correct answer ✅mortgagee
The lender requires additional security of the property itself as
collateral for the loan.
•------ - allows the lender to demand payment of the entire balance
remaining immediately due and payable if the borrower is in
default. -
correct answer ✅Acceleration clause
• --------entitles the lender to declare the principal balance
immediately due and payable if the borrower sells the property
during the mortgage term and makes the mortgage unassumable. -
correct answer ✅Alienation clause
• In making a mortgage, the lender requires the borrower to
sign--------providing evidence that a valid debt exists. -
correct answer ✅promissory note
•------------and up to the time a foreclosure sale is held, the
borrower has an equitable right to redeem his property by paying
, MORTGAGES AND LOANS EXAM
QUESTIONS AND ANSWERS
the principal amount of the debt, accrued interest, and lender costs
incurred in initiating the foreclosure. -
correct answer ✅Equity of Redemption After default,
• A -------- REFERS TO ANY MORTGAGE THAT IS SUBORDINATE TO
ANOTHER MORTGAGE. -
correct answer ✅JUNIOR MORTGAGE
• --------when a loan payment amount is not sufficient to cover
interest due, the shortfall added back into the principal, causing the
principal to grow larger after payment is made. -
correct answer ✅Negative amortization-
•--------the monthly payments are lower in the early years of the
mortgage term and increase at specified intervals until the payment
amount is sufficient to amortize the loan over the remaining term. -
correct answer ✅Graduated payment mortgage
• ---------two or more parcels of real estate are pledged as security
for payment of the mortgage debt. The blanket mortgage usually
contains a release clause that allows certain parcels of property to
be removed from the mortgage lien if the loan balance is reduced
