A. The tricky answer choice is B. If the loan is not fully amortized, then the remaining balance is due at the last payment, which means all the payments are not the same.
C. Remember that the VA guarantees loans that are made by primary lenders. It does not lend money itself. Also, you must remember that the mortgagor is the person borrowing the money.
B. GNMA guarantees that payments will be made to buyers of mortgages but does not actually buy mortgages.
D. The mortgagor (borrower) gives the mortgage (security document) to the mortgagee (lender). In this case, the seller takes back a mortgage that the buyer gives.
A. The movement of the index is what makes the mortgage adjustable. All the other numbers remain fixed based on the original mortgage/note agreement
C. This is definitional. Recording the mortgage documents in effect gives notice of a lien.
D. The mortgage money is buyer’s money that will be passed on to the seller.
A. The interest rate does not change for a biweekly mortgage, but all the other answers are correct.
B. This is really a vocabulary question requiring you to know the meaning of all the terms. Intermediation means acting as the middleman, in this case, between depositors and borrowers.
C. This is statutory.
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