A lender may require a borrower to obtain which of the following to pay off the loan in the event the borrower defaults and the property is foreclosed:
a. Homeowners insurance
b. Mortgage insurance
c. Casualty insurance
d. Liability insurance
Q. 2A simulation is a computer-generated exhibit that is used as a visual aid to illustrate an opinion; an animation is a computer-generated exhibit created when information is fed into a computer that is programmed to analyze the data.
Indicate whether the statement is true or false
Q. 3The higher the LTV ratio, the greater the risk the lender is taking in making the loan:
a. True
b. False
Q. 4According to Zubulake, the purposes for which the responding party maintains the requested data is typically important.
Indicate whether the statement is true or false
Q. 5The ratio of the loan amount to the fair market value of the property to be purchased is:
a. Loan-to-value ratio
b. Debt-to-equity ratio
c. Loan-to-equity ratio
d. None of the above
Q. 6In order to maintain the presumption that the responding party pays, the cost-shifting analysis must be neutral; close calls should be resolved in favor of the presumption.
Indicate whether the statement is true or false
Q. 7Property that is pledged as security for a real estate loan is:
a. Equity
b. Self-amortizing
c. Self-liquidating
d. Collateral
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