NSAR: Unit 5 Questions with Correct Answers
True or False: A mortgage of real estate is different from a mortgage of
land. Correct Answer-False
Legal, Equitable, or Chattel: The first mortgage is viewed as a legal
mortgage given rights concerning title. As title can only be transferred
once, subsequent mortgagees rely on the mortgagor's equity in the
property and have become known as equitable mortgages. Correct
Answer-Equitable
Legal, Equitable or Chattel: the law divides property and real property -
with real property being the land and any buildings annexed to that land.
Personal property can also be mortgaged by way go a chattel mortgage;
ex. bank loan for manufactured homes (on leased land), cars or furniture.
Correct Answer-Chattel
Legal, Equitable, or Chattel: The mortgagee has legal title to the
property; however, the mortgagor has the right to deal with the land and
premises in any way that he or she sees fit, subject to provisions in the
mortgage document. The main function of a mortgage is to provide
security, backed by a legal title. Correct Answer-Legal
Out of the list below, choose elements that are part of a mortgage deed.
Choose all that apply.
A. Priorities
B. Arrears
C. Rights
, D. Covenants Correct Answer-Arrears & Covenant
Mortgages are considered a financial vehicle in the marketplace. What
are the reasons, choose all that apply.
A. Low risk
B. Overall stability
C. Low volatility
D. Guaranteed returns
E. Consistency of return
F. Higher than average security Correct Answer-Overall stability,
consistency of return, and higher than average security
Conventional or High Ratio Financing: This type of financing is above
an 80% LTV, and is insured by either Canada Mortgage and Housing
Corporation, Canada Guarantee, or Genworth Financial Canada. Correct
Answer-High Ratio Financing
Conventional or High Ratio Financing: This type of financing cannot
exceed an 80% LTV. Correct Answer-Conventional Financing
Simple or Compound Interest: Interest is charged within specific time
periods, daily, weekly, monthly, quarterly. Correct Answer-Compound
Interest
Simple or Compound Interest: Interest is calculated based solely on
principal outstanding Correct Answer-Simple Interest
True or False: A mortgage of real estate is different from a mortgage of
land. Correct Answer-False
Legal, Equitable, or Chattel: The first mortgage is viewed as a legal
mortgage given rights concerning title. As title can only be transferred
once, subsequent mortgagees rely on the mortgagor's equity in the
property and have become known as equitable mortgages. Correct
Answer-Equitable
Legal, Equitable or Chattel: the law divides property and real property -
with real property being the land and any buildings annexed to that land.
Personal property can also be mortgaged by way go a chattel mortgage;
ex. bank loan for manufactured homes (on leased land), cars or furniture.
Correct Answer-Chattel
Legal, Equitable, or Chattel: The mortgagee has legal title to the
property; however, the mortgagor has the right to deal with the land and
premises in any way that he or she sees fit, subject to provisions in the
mortgage document. The main function of a mortgage is to provide
security, backed by a legal title. Correct Answer-Legal
Out of the list below, choose elements that are part of a mortgage deed.
Choose all that apply.
A. Priorities
B. Arrears
C. Rights
, D. Covenants Correct Answer-Arrears & Covenant
Mortgages are considered a financial vehicle in the marketplace. What
are the reasons, choose all that apply.
A. Low risk
B. Overall stability
C. Low volatility
D. Guaranteed returns
E. Consistency of return
F. Higher than average security Correct Answer-Overall stability,
consistency of return, and higher than average security
Conventional or High Ratio Financing: This type of financing is above
an 80% LTV, and is insured by either Canada Mortgage and Housing
Corporation, Canada Guarantee, or Genworth Financial Canada. Correct
Answer-High Ratio Financing
Conventional or High Ratio Financing: This type of financing cannot
exceed an 80% LTV. Correct Answer-Conventional Financing
Simple or Compound Interest: Interest is charged within specific time
periods, daily, weekly, monthly, quarterly. Correct Answer-Compound
Interest
Simple or Compound Interest: Interest is calculated based solely on
principal outstanding Correct Answer-Simple Interest
