1.

Of the following, which can be the best indicator of mortgage interest rates?

The discount rate of interest

Fannie Mae/Freddie Mac administered yield requirements

The results of weekly Treasury bill offerings

Reports made by the Farm Credit System

2.

The purpose of an acceleration clause in a mortgage instrument is to:

allow the rate of interest to be increased.

speed up the monthly payments.

make the principal balance due payable in full in the event of default.

increase the payment amount at periodic intervals.

3.

Which of the following legal instruments is used to pledge property as security for a mortgage loan?

promissory note

contract for deed

mortgage

earnest money contract

4.

Which of the following is true about a wraparound mortgage?

It is another type of first mortgage.

It is a junior claim to an existing mortgage.

The property pledged must be owner occupied.

It cannot be used if the property is seller- financed.