Exam 26: Credit, Mortgages, and Debtors Rights

The Dodd-Frank Wall Street Reform and Consumer Protection Act regulates mortgage lending.

The party borrowing money is usually called a ________.

A right that allows the mortgagor to redeem real property after default and before foreclosure is known as ________.

The ________ Act of 2010 is a federal statute that requires increased disclosure of credit information and terms to consumers and regulates consumer credit providers and others.

Gunther wins a $25,000 judgment against Krissa, and Krissa refuses to pay. Krissa works for Iniversal Electronics. Gunther obtains a postjudgment writ of garnishment from the court ordering Iniversal Electronics to pay 25 percent of Krissa's weekly disposable earnings directly to Gunther. However, Gunther is not satisfied with this, and he asks the court to increase Krissa's pay deduction to 50 percent, which the court refuses to do. Which federal Act allows Krissa to retain 75 percent or more of her earnings in a writ of garnishment?

A ________ is a judgment of a court that permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan.

Roundwell Motors purchases a manufacturing plant for $15 million, pays $5 million in cash as down payment, and borrows the remaining $10 million from Home Providence Bank. To secure the loan, Roundwell gives the plant as collateral to Home Providence Bank. What kind of collateral arrangement is in place between Roundwell Motors and Home Providence Bank?

A deed of trust is a two-party instrument.

Which of the following Acts protects debtors who are subject to writ of garnishment from excessive action?

The Fair and Accurate Credit Transactions Act (FACTA) of 2003 permits credit reporting companies to place fraud alerts in their credit files.

Which of the following is a prejudgment writ?

Foreclosure sales are permitted only in select states.

The Fair Credit Billing Act requires that creditors promptly acknowledge consumer billing complaints in writing and investigate billing errors.