MTRES Montana Real Estate Salesperson - Set 5 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: After a lender originates a home loan, it often sells that loan to investors so the lender can recover its funds and make new loans to other borrowers. This buying and selling of existing loans takes place in which market?
Question 42: In certain states, a borrower who mortgages a home keeps both the legal and the equitable title, while the lender merely holds a lien on the property as collateral until the debt is fully satisfied. Which theory of mortgage law does this arrangement reflect?
Question 43: An eligible veteran shopping for a Helena home learns that the Department of Veterans Affairs will back a portion of his loan, often allowing him to buy with no down payment. Before a lender will proceed, which document must the veteran first obtain?
Question 44: When a buyer finances a Bozeman starter home through an FHA-insured program, the lender collects an up-front charge at closing plus an ongoing monthly amount that protects the insurer against default. This particular insurance charge on FHA loans is properly called which of the following?
Question 45: In a two-party mortgage arrangement, the borrower gives a promissory note and a mortgage to the party who supplies the loan funds and receives a lien on the property. Which term identifies the lender that holds this lien in a mortgage?
Question 46: A first-time buyer in Kalispell is told that the Federal Housing Administration will stand behind her mortgage, yet the agency itself neither builds houses nor advances any funds directly. Regarding a so-called FHA loan, what role does the FHA actually play in the transaction?
Question 47: When a first-time buyer in Billings borrows money to purchase a home, she signs a document that is her personal, written promise to repay the debt with interest according to agreed terms. Which financing instrument is described by this borrower's promise to pay?
Question 48: A provision in the financing instrument requires the lender to execute a satisfaction of mortgage, returning to the borrower all interest in the property, once the promissory note has been paid in full. Which clause obligates the lender to release the security?
Question 49: When a borrower defaults, a particular provision in the mortgage or deed of trust lets the lender declare the entire remaining principal balance immediately due and payable, sparing the lender from suing over each missed payment. Which clause grants the lender this power?
Question 50: At a residential closing, a settlement statement lists a charge paid to a company that did no actual work in the transaction, its fee added only because another provider passed the file along. RESPA specifically condemns this type of charge under which label?
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