Real Estate Finance Exam Questions with complete solutions

restraint on alienation - ANSWER-Mortgage law prohibits enforcement of any trust deed provision which purports to restrict the owner's right to sell, lease or encumber their property, called a: due-on - ANSWER-Garn-St. Germain Federal Depository Institutions Act of 1982 (Garn) provides general guidelines for ____________ enforcement. mortgage-backed bonds - ANSWER-Garn-St. Germain Federal Depository Institutions Act of 1982 (Garn) provides general guidelines for ____________ enforcement. residential mortgages - ANSWER-The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) applies to: graduated payment mortgage (GPM) - ANSWER-With a(n) ____________, payments increase periodically by predetermined amounts until the payment fully amortizes the principal over the remaining life of the mortgage without a further increase in payments, the interest rate on the note being fixed. exculpatory clause - ANSWER-A(n) ____________ in a note is used to convert a mortgage holder's recourse paper into nonrecourse paper. allonge - ANSWER-A written modification agreement attached to a note is called a(n): three years - ANSWER-When a prepayment penalty is allowed on fixed rate consumer mortgages classified as qualified mortgages (QMs), the penalty period is limited to ____________ after origination. lock-in - ANSWER-A(n) ____________ clause in a note prohibits prepayment and satisfaction of the mortgage debt