Unit 7: Review Exam

Which of the following describes a package mortgage?

• more than one parcel of property is pledged

• includes a release clause provision

• Includes both real and personal property

• the mortgagee makes monthly payments to the mortgagor

The right to cure the default and stop a foreclosure sale is:

• defeasance

• equitable redemption

• exculpatory

• alienation

The equity of redemption period ends when:

• the mortgagor misses a payment

• the certificate of sale is issued

• the certificate of title is issued

• the notice of sale Is published

Which of the following are the same?

• borrower - mortgagor

• Lender - obligor

• Seller - Grantee

• Buyer - Vendor

To have a real yield increase of 1% on a mortgage, how many points must be charged?

• 2

• 4

• 6

• 8

Upon assignment of a mortgage, the mortgagee will execute which document setting forth the exact unpaid balance of the mortgage?

• estoppel certificate

• certificate of sale

• certificate of title

• reasonable value certificate

A development property is subject to a blanket mortgage which contains provisions for a partial release. An individual purchasing a lot from the developer should make sure that:

• the purchase price is enough to release the property from the blanket mortgage

• the developer holds a real estate broker license

• the county planning commission has issued a certificate of title to the lot

• the clerk of court holds a certificate of sale.

The mortgagee has title to the real property in which states?

• lien theory states

• title theory states

• mortgage theory states

• Torrens theory states

An assignment of mortgage occurs when:

• the mortgagor stops making principle and interest payments

• The federal reserve adjusts money supply

• the mortgagee transfers the mortgage to another company or person

• The high bidder takes ownership after a foreclosure sale

A lender charged 6 percent interest plus 4 points. What is the approximate yield on this loan?

• 5.5%

• 6%

• 6.5%

• 7%