FINANCIAL MARKETS& INSTITUTIONS (FIN. 345) FINAL EXAM FALL HULTIPLE CHOICE The t
ID: 2802251 • Letter: F
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FINANCIAL MARKETS& INSTITUTIONS (FIN. 345) FINAL EXAM FALL HULTIPLE CHOICE The traditional mortgage is a A. fixed-rate instrunent G. D. level-payment fully amorcized al1 of the above When a mortgage loan is based solely on the credit of the borrower and on the collateral for the mortgage, the mortgage is said to be a(n) originated mortgage B. conventional mortgage C. PMI mortgage D. all of the above 3. The type(s) of real estate properefes that can be mortgaged are A. B. U.S. Governnent guaranteed. C. residential, D. non-residential. E. C and D. non-defaulted. In the mortgage process, the original lender is called the A. savings and losn institution B. thrift instleution morcgage originator none of the above D. Mortgage originators nay generate incme, from mortgage activities by A. B. C. D. S: . charging an origination fee charging an application fee and certain processing fees. charging for servicing the mortgage they originate. the mortgage originator may hold the mortgage in its investment portfolio a11 of the above E. Servicing of a mortgage involves A. collecting nonthly payments from mortgagors and forwarding the proceeds to owners of the loan. B. sending payment notices to mortgagors. C. maintaining records of mortgage balances. D initiating foreciosure proceedings. E. all of the aboveExplanation / Answer
1.) A traditional mortgage is a fixed rate instrument. that is the traditional mortgage will have to pay fixed rate through out the life time irrespective in fluctuations of interest rates. hence traditional mortgage are also known us fixed rate instrument.
2.) The option is B Conventional Mortgage ie., the mortgage loan is based solely on the credit of the borrower and on the collateral for the mortgage.
3.) The option is E both the residential and non residential real estate properties can be mortgaged.
4.) The option is C ie., Mortgage originator he is the original lender in the process of mortgage process. he is the inital lender when the packages are sells the loan to the investor.
5.)
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