|When a lender requires tax and/or insurance amounts to be deposited with the lender by placing the monies in an escrow account, a “Budget Mortgage or Deed of Trust” occurs. These escrow accounts may also be referred to asimpound or Reserve Accounts.compound or Reserve Accounts.insured or Restricted Accounts.interlocked and Restricted Accounts.
||impound or Reserve Accounts.
|In which way are a mortgage document and promissory note similar?Both are non-negotiable instrumentsBoth are debt-reducing instrumentsBoth are contractsBoth are fully standardized instruments of conveyance
||Both are contracts
|Which mortgage clause allows a lender to regain their investment if the borrower does not pay his payment?AlienationDefeasanceAccelerationPrepayment
|When a mortgage is paid off, what clause allows the lender to release the mortgage rights and issue a satisfaction piece?AccelerationDefeasanceCodicil – change in a willWrit of execution
|A DEBENTURE is defined as a long-term note that is not secured by a specific property. When the lender holds the security so that if the borrower does not pay the promise made in the note they can foreclose on the property, the real estate loan is calleda secondary market loan.an upside down loan.a subordinated loana collateralized loan.
||a collateralized loan.
|If prioritizing loans as when recording, a second mortgage or deed of trust is referred to asa secondary loan.an underwater mortgage.a factored loan or mortgage.a junior mortgage.
||a junior mortgage.
|Of the following parties to a mortgage, whose interest is benefitted by an acceleration clause?The mortgagorThe mortgageeThe trusteeThe trustor
|Typically, a mortgage loan monthly payment consists of PITI, (P) the amount borrowed from the lender is calledthe primary loan.the penalty.the principal.the promulgated covenant.
|Which clause protects a lender if he does not want the loan to be assumed by another party?DefeasanceSubordinationDue on sale (alienation)Subrogation
||Due on sale (alienation)