RESIDENTIAL MORTGAGES EXAM
QUESTIONS AND ANSWERS
Which method involves the conveyance of the title to the lender to avoid foreclosure -
Correct Answers -Deed in Lieu of foreclosure
When a promissory note is executed it becomes - Correct Answers -Evidence of the
debt
A mortgage clause that provides for the transfer of title to real property to the borrower
once the mortgage debt has been repaid is the - Correct Answers -Defeasance clause
Which legal instrument would contain the interest rate, loan amount, maturity date, and
payment schedule - Correct Answers -Note
The mortgagor is the person who - Correct Answers -Signs the note
A first mortgage holder can agree to take a lower lien priority using which instrument -
Correct Answers -Subordination agreement
A closing agent who is preparing for a closing want to verify the balance of an existing
mortgage before cutting a check to pay the lending for closing which document verifies
this information - Correct Answers -Estoppel certificate
The amount of a loan expressed as a percentage of the value of your property offered
as security is the - Correct Answers -Loan to value ratio
A financing device that grants a buyer equitable title without a deed from Grantor to
grantee is called - Correct Answers -A land contract
Which mortgage clause legally allows the lender to declare the entire unpaid sum due
when the debtor defaults - Correct Answers -Acceleration clause
An agreement that states that a first mortgagee's rights will be allowed to become Junior
to subsequent mortgage is called a - Correct Answers -Subordination agreement
A Lender promises to make a loan for an owner of a new apartment building once
construction of the building is complete this is called - Correct Answers -A takeout
commitment
