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Questions:
1. Explain what is hypothecation ? What are negotiable instruments, give one or two examples ? What is a promissory note ?
2. Name the three parties to a Deed of Trust. Describe each party (who are they)? List the six requirements for a valid Deed of Trust (Trust Deed).
3. Explain all the steps that a lender must take to initiate a foreclosure once the borrower defaults.
4. Describe the advantages and disadvantages of the Trust Deed (versus a mortgage).
5 Name and Explain at least four (4) typical “Clauses” used in real estate loans.
6 Define in detail what an Amortized Loan is. What is the difference between a fully amortized loan and a partially amortized loan (whether or not it is a first or second mortgage) ? Does the monthly payment amount change for a fixed rate loan ? Does the dollar amount of the principle balance and interest change each month within that payment ?
7 Explain in detail what are Conventional Loans ?
8 How do Nonconforming Loans differ from Conforming Loans ? Please write in detail the advantages and disadvantages of a 15-year mortgage (versus the more traditional 30-year mortgage).
9 What does LTV stand for ? What is/ has been the traditional percentage LTV for a Conventional Loan, what two other LTV percentages are also acceptable nowadays because of mortgage insurance being required ?
10 Please describe in detail how mortgage insurance works. Is the entire loan amount insured or a certain amount of the loan ? At some point in the future under the right circumstances can mortgage insurance stop ? Yes or No ?

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