FINC 3250 Exam 3 (Final) Questions And Answers 2024

FINC 3250 Exam 3 (Final) Questions And Answers 2024 1. In a graduated payment mortgage, the graduated part is the a. monthly payment.* b. maturity date. c. entire loan is graduated. d. interest rate.: a. monthly payment.* 2. right of redemption allows the borrower to regain his prop- erty by paying the obligations against it in full before the foreclosure sale; right of redemption allows the borrower to regain his property for up to one year after the foreclosure sale by paying the obligations against it in full. a. Equitable; statutory b. Mandatory; optional c. Equitable; protective d. Statutory; equitable: Equitable; statutory 3. Of the following parties to a mortgage, whose interest is benefited by an acceleration clause? a.The mortgagee b. A future owner c.The mortgagor d.The trustee: a. The mortgageee 4. A lender can legally discriminate in loan terms based on the applicant's a. marital status. b. race or skin color. c. intention to occupy (or not occupy) the mortgaged property. d. religion.: c. intention to occupy (or not occupy) the mortgaged property 5. Penalties for violation of the truth-in-lending laws include a. court costs, attorney fees, and actual damages. b. a fine of up to $5,000 and/or imprisonment for up to 1 year. c. civil penalties up to twice the amount of the finance charge up to a maximum of $1,000. d. all of the above.: d. All the above 6. All of the following may be used for setting ARM interest rates EXCEPT a. cost of funds to thrift institutions. b. Gross National Product. c. London Inter-Bank Offered Rate. d. one-year U.S. Treasury securities.: b. Gross National Product. 7. Which lien would have highest priority? a. Mechanic's lien b. First mortgage or trust deed c. Property tax lien d.The lien which is recorded first: Property tax lien 8. The secondary mortgage market is an area of activity in which a. second mortgages are made. b. a borrower may get loans if the primary market cannot accommodate them. c. existing mortgages are bought, sold and discounted. d. foreclosed properties are bought and sold.: c. existing mortgages are bought, sold and discounted. 9. A mortgage lender will lend based on a proportion of the appraisal or sale price, whichever is less.This proportion is called the a. owner's equity. b. CRV. c. loan-to-value ratio. d. percent return.: c. loan-to-value ratio. 10. A deed of trust conveys naked title to the a. beneficiary. b. trustee. c. escrow officer. d. trustor.: b. trustee. 11. A trustor's relationship to a beneficiary is most nearly the same as a a. grantor to a grantee. b. beneficiary to a trustee. c. buyer to a seller. d. mortgagor to a mortgagee.: d. mortgagor to a mortgagee. 12. Assets that are either already held as cash or cash equivalents, or that can be easily converted into cash, are called a. accessible assets. b. convertible assets. c. illiquid assets. d. liquid assets.: d. liquid assets.