Lending Practices and Loans
 

  1. Question: What is meant by the term "Portfolio"?

    A
    A collection of loans held by a borrower

    B
    Anything offered or given to fulfill the performance of a contract

    C
    The interest payment of a loan

    D
    A combination of assets held for its investment benefits including financial and non-financial returns

    Note: Answer not sure
    1. Report

  2. Question: What does the term "Covenant" mean?

    A
    A bond coupon payment

    B
    The principal portion of a loan

    C
    The monthly payment on a loan

    D
    An agreement or promise to do or not to do a particular thing related to a loan

    Note: Answer not sure
    1. Report

  3. Question: What is the process of evaluating a loan application to determine the advisability of making the loan called?

    A
    Debt-to-income ratio

    B
    Underwriting

    C
    Surveying

    D
    Assessing

    Note: Answer not sure
    1. Report

  4. Question: What is meant by Predatory Lending?

    A
    Lending money to people who are extended beyond their means in an attempt to get them to spend more than they should

    B
    Lending money to high net worth individuals

    C
    Lending people money to buy a car

    D
    Lending money to students to pay for their education

    Note: Answer not sure
    1. Report

  5. Question: What is meant by the term "Impound"?

    A
    Customary costs above and beyond the sale price of a property that must be paid to cover the transfer of ownership at closing

    B
    The portion of a borrower's monthly payments held by the lender or service provider to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due

    C
    The time frame of a mortgage

    D
    The implied interest rate

    Note: Answer not sure
    1. Report

  6. Question: What happens if a lender charges a rate beyond what is legally allowed and the borrower does not pay?

    A
    The lender can not sue the borrower for any amount

    B
    The lender can not sue the borrower to repay the amount beyond what is legally allowed

    C
    The lender can have the borrower imprisoned for fraud

    D
    The lender goes bankrupt

    Note: Answer not sure
    1. Report

  7. Question: Who is a mortgagee?

    A
    The borrower

    B
    The lending institution

    C
    The mortgage broker

    D
    The lender

    Note: Answer not sure
    1. Report

  8. Question: Should a loan be taken out just for its tax benefits?

    A
    Yes, the tax benefits make any loan amount worth it

    B
    Yes, as long as the loan is paid back in the same year

    C
    No, unless the loan is for over $100,000

    D
    No, the benefit of deduction of loan interest does not offset the cost of the interest

    Note: Answer not sure
    1. Report

  9. Question: What purpose do mortgage brokers serve?

    A
    They work for the bank and sell mortgages

    B
    They work for the borrowers, aggregating all loan options and provide the borrowers with options

    C
    They work for the real estate companies and sell property

    D
    They are the buyers of real estate

    Note: Answer not sure
    1. Report

  10. Question: What options does a bank have if a company breaks a covenant?

    A
    None, the bank has to stick to the loan agreement

    B
    None, required by the IRS to not give any forgiveness

    C
    The bank can temporarily waive the covenants to give the borrower time to become compliant

    D
    The bank will permanently waive the covenants

    Note: Answer not sure
    1. Report
First12345Last
/9
Copyright © 2024. Powered by Intellect Software Ltd