Exam 33: Mortgages

Most creditors require a borrower to purchase mortgage insurance if the borrower makes a down payment of at least 20 percent of the purchase price.

Equitable redemption allows a lender to gain title and regain possession of a property.

To purchase a house, Greg obtains a mortgage loan with Hillside Bank. Greg defaults on the payments on the loan. The bank proceeds to foreclosure, which Greg opposes. A court supervises the process. This is

Under a deed in lieu of foreclosure, a lender agrees to surrender the deed to mortgaged property to the mortgagor and to forego payments on the loan.

Predatory lending typically occurs during the loan origination process .

Refinancing soon after obtaining a mortgage rarely benefits the homeowner and may, in fact, result in prepayment penalties.

Mortgage loans are contracts.

Most adjustable-rate mortgages have interest rate caps that limit how much the rate can rise over the duration of the loan.

A lender who successfully bids on property at a foreclosure sale is considered to have received repayment of the loan in the amount of the bid.

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

To purchase a house, Ethel obtains a mortgage loan from Fidelity Bank. Later, Ethel is unable to make payments on the loan. Meanwhile, the market value of the house has declined. Fidelity agrees to a sale of the property for less than the amount due on the loan. This is

With respect to real estate transactions, the Truth-in-Lending Act applies only to loans to purchase commercial property.