1.) The right of foreclosure in order to collect on an unpaid lien or delinquent mortgage is governed primarily by:

a. the secretary of the Department of housing and Urban Development

b. The Federal Housing Administration

c. State statue

d. all the above

e. non of the above

2.) The use of second mortgages in today's real estate finance environment is:

a. usually at a higher interest rate than the first mortgage

b. increasing in popularity because of the current tax law

c. a potential financial danger if not used properly

d. all of the above

3.) Money for tax and insurance payments that accompanies principal and interest would generally be placed in:

a. an impound account

b. an escrow account

c. a remaining balance account

d. a reserve account

4.) Catherine agrees to pay $90,000 for a home, contingent upon obtaining an 80% loan. The lender charges $3,600 for points. How many points were charged?

a. 2 points

b. 5 points

c. 6 points

d. 4 points