Exam 13: Mortgages Foreclosures After the Recession

Property Financial Corporation makes loans that qualify,under a Federal Reserve Board amendment to Regulation Z,as Higher-Priced Mortgage Loans (HPMLs).Quinn applies to Property Financial for an HPML.To make the loan,the lender must

Harbor Bay Bank has made mortgage loans to consumers that qualify for the Home Affordable Modification Program (HAMP),which offers incentives to lenders to change the terms of certain loans.The purpose of HAMP is to

Virgil borrows $175,000 from United Finance Bank to buy a home.Federal law regulates primarily

If a loan is not paid within a reasonable time after a notice of default,the borrower will receive a notice of sale.

Seymour borrows $350,000 from Reliable Bank to buy a home.Seymour stops making payments on the loan ten months later.After the bank repossesses the property securing the loan but before it is sold,Seymour wants to buy it.This is

With an interest-only mortgage,the borrower can choose to pay only the interest portion of the monthly payment for a specified period of time.

Under a deed in lieu of foreclosure,the property is conveyed to the lender in satisfaction of the mortgage.

Denise borrows $90,000 from Clear Lake Credit Union to buy a home.Denise loses her job and fails to make payments on the mortgage,but assures Clear Lake Credit that she will soon secure a new job.The lender agrees to postpone the payments.This is

Liberty Bank provides Michelle with a standard mortgage with an unchanging rate of interest to buy a home.Payments on the loan remain the same for the duration of the mortgage.This is

Upton borrows $150,000 from Valley Credit Union to buy a home,which secures the loan.Three years into the term,Upton stops making payments on it.Valley Credit repossesses and auctions off the property to Wesley.The sale proceeds are not enough to cover the unpaid amount of the loan.In most states,Valley Credit can ask a court for

Lorna borrows $175,000 from Mountainside Credit Union to buy a home.Among the terms that must be disclosed under federal law is the annual percentage rate.This is

Tracy borrows $30,000 from Secure State Bank.The lender accepts Tracy's equity in her home as collateral,which can be seized if the loan is not repaid on time.With respect to any proceeding that occurs if Tracy fails to make the payments,this loan is subordinated.This means that it

Lenders are required to charge prepayment penalties on most subprime mortgages and home equity loans.

Loan flipping occurs when a lender convinces a homeowner to refinance soon after obtaining a mortgage.

Community Trust Bank provides Devlin with a mortgage to buy a home.The rate of interest is fixed for seven years.At the end of that period,a large payment for the entire balance of the mortgage loan is due.This is

Hubert borrows $100,000 from Integrity Mortgage Mart to buy a home.Soon after obtaining the mortgage,Integrity convinces Hubert to refinance.This is

If a homeowner defaults,the lender has the right to foreclose on the mortgaged property.

Gena borrows $350,000 from Fish Island Bank to buy a home,which secures the mortgage.In the seventh year of the loan,Gena stops making payments.After the bank repossesses the property but before it is sold,Gena may buy it by paying

If a lender fails to provide certain material disclosures,a borrower has up to seven years to rescind the mortgage.

Agnes borrows $110,000 from Bay Harbor Bank to buy a home under a mortgage with an acceleration clause.After eighteen payments,Agnes stops making payments on the mortgage.Bay Harbor