Question 1

The allodial system of land ownership that forms the basis of ownership in the United States is best described as the

Accepted Answer

A)   Right to occupy and use land owned by a superior
B)   Right of a democratic government to control how land is used
C)   Ownership of land is free and absolute subject only to governmental and voluntary restrictions
D)   Origin and development of community property laws.

Question 2

A word that has the legal meaning of a borrower remaining in possession of property pledged as security for a loan is

Accepted Answer

A)   Possession
B)   Collateral
C)   Security
D)   Hypothecate

Question 3

In mortgage lending, the best description of a loan discount is

Accepted Answer

A)   A cost of borrowed money
B)   A lower price for a mortgage loan
C)   A method of lowering an interest rate
D)   An extra fee for services rendered

Question 4

As used in business, a "security" is

Accepted Answer

A)   A safety measure
B)   A blanket
C)   A certificate representing an investment
D)   A limited form of protection C

Question 5

When a lender who's primary aim is to pool mortgages to resell or commit them to a Mortgage Back Security and then service the mortgages uses a funding vehicle called a:

Accepted Answer

A)   REMIC
B)   Mortgage Conduit
C)   Ginnie Mae
D)   Warehouse Line

Question 6

Which of the following is most descriptive of the primary market?

Accepted Answer

A)   The loan origination market
B)   Trading in second mortgages
C)   The buying and selling of mortgage loans
D)   The market created by Fannie Mae and Freddie Mac

Question 7

Of the following, the more precise description of a share of stock is

Accepted Answer

A)   An indication of an obligation
B)   A form of unsecured debt
C)   An evidence of ownership
D)   A kind of security

Question 8

As used in mortgage lending, the term "collateral" means

Accepted Answer

A)   Something of value pledged as security for a loan
B)   The purpose for which a mortgage loan is made
C)   A valuable asset
D)   Associated with but of secondary importance. A

Question 9

Of the following, the more precise description of a share of stock is:

Accepted Answer

A)   An indication of an obligation.
B)   A form of unsecured debt.
C)   An evidence of ownership
D)   A kind of security.

Question 10

A "negotiable instrument" is one that can be

Accepted Answer

A)   Adjusted by negotiation between parties involved
B)   Sold to others
C)   Changed only at periodic intervals
D)   An agreement to negotiate with another B

Question 11

After the recent financial crisis Fannie Mae and Freddie Mac were put into conservatorship and the new government agency that has responsibility for their oversight is:

Accepted Answer

A)   Federal Reserve Bank
B)   The Office of Federal Housing Enterprise Oversight
C)   Federal Housing Finance Agency
D)   Department of Housing and Urban Development

Question 12

The need to have a borrower sign both a mortgage and a promissory note is necessary as these two documents are:

Accepted Answer

A)   Both collateral instruments
B)   Considered interlinked documents
C)   Must both be recorded to have a perfected interest
D)   None of the above

Question 13

Bonds are sold in the financial market by corporations for the purpose of

Accepted Answer

A)   raising equity cash
B)   Borrowing money
C)   Providing additional brokerage fees
D)   Generating greater income

Question 14

To create a legally valid security interest, a business must ensure that the interest is:

Accepted Answer

A)   Perfected
B)   Debated
C)   United
D)   Detached
E)   Exposed

Exam 1: History and Background

The allodial system of land ownership that forms the basis of ownership in the United States is best described as the

Correct Answer
verified

A word that has the legal meaning of a borrower remaining in possession of property pledged as security for a loan is

Correct Answer
verified

In mortgage lending, the best description of a loan discount is

Correct Answer
verified

As used in business, a "security" is

Correct Answer
verified
C

When a lender who's primary aim is to pool mortgages to resell or commit them to a Mortgage Back Security and then service the mortgages uses a funding vehicle called a:

Correct Answer
verified

Which of the following is most descriptive of the primary market?

Correct Answer
verified

Of the following, the more precise description of a share of stock is

Correct Answer
verified

As used in mortgage lending, the term "collateral" means

Correct Answer
verified
A

Of the following, the more precise description of a share of stock is:

Correct Answer
verified

A "negotiable instrument" is one that can be

Correct Answer
verified
B

After the recent financial crisis Fannie Mae and Freddie Mac were put into conservatorship and the new government agency that has responsibility for their oversight is:

Correct Answer
verified

The need to have a borrower sign both a mortgage and a promissory note is necessary as these two documents are:

Correct Answer
verified

Bonds are sold in the financial market by corporations for the purpose of

Correct Answer
verified

To create a legally valid security interest, a business must ensure that the interest is:

Correct Answer
verified

Exam 1: History and Background

The allodial system of land ownership that forms the basis of ownership in the United States is best described as the

Correct AnswerverifiedShow Answer

A word that has the legal meaning of a borrower remaining in possession of property pledged as security for a loan is

Correct AnswerverifiedShow Answer

In mortgage lending, the best description of a loan discount is

Correct AnswerverifiedShow Answer

As used in business, a "security" is

Correct AnswerverifiedC

When a lender who's primary aim is to pool mortgages to resell or commit them to a Mortgage Back Security and then service the mortgages uses a funding vehicle called a:

Correct AnswerverifiedShow Answer

Which of the following is most descriptive of the primary market?

Correct AnswerverifiedShow Answer

Of the following, the more precise description of a share of stock is

Correct AnswerverifiedShow Answer

As used in mortgage lending, the term "collateral" means

Correct AnswerverifiedA

Of the following, the more precise description of a share of stock is:

Correct AnswerverifiedShow Answer

A "negotiable instrument" is one that can be

Correct AnswerverifiedB

After the recent financial crisis Fannie Mae and Freddie Mac were put into conservatorship and the new government agency that has responsibility for their oversight is:

Correct AnswerverifiedShow Answer

The need to have a borrower sign both a mortgage and a promissory note is necessary as these two documents are:

Correct AnswerverifiedShow Answer

Bonds are sold in the financial market by corporations for the purpose of

Correct AnswerverifiedShow Answer

To create a legally valid security interest, a business must ensure that the interest is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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A

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B

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