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Real Estate Financing Principles

Principles 2 Chapter 15
Horizontales
An added loan fee charged by a lender to make the yield on a lower-than-market-value loan competitive with higher-interest-rate loans
A loan insured by the Federal Housing Administration and made by an approved lender in accordance with FHA regulations
An agency that purchases a number of mortgage loans and assembles them into one or more packages of loans for resale to investors
Some states' interpretation of a mortgage to mean that the lender is the owner of mortgage land. On full payment of the mortgage debt, the borrower becomes the landowner.
A line of credit made against the equity in the borrowor's home
A mortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the US Department of Veterans Affairs to limit the lender's possible loss.
The clause in a mortgage or trust deed or note that can be enforced to make the entire amount of principal and interest due immediately if the mortgagor defaults on an installment payment or other covenant
A written instrument, such as a note, that may be transferred by endorsement or delivery. The holder, or payee, may sign the instrument over to another person or, in certain cases, merely deliver it to the person. The transferee then has the original payee's right to payment.
Law requiring credit institutions to inform borrowers of the true cost of obtaining credit; commonly called the Truth in Lending Act
A corporation established to purchase primarily conventional mortgage loans in the secondary mortgage market
Some states' interpretation of a mortgage as being purely a lien on real property. The mortgagee thus has no right of possession but must foreclose the lien and sell the property if the mortgagor defaults.
A corporation within HUD that participates in the secondary market. It sells mortgage-backed securities that are backed by pools of FHA and VA loans.
Buying back real estate sold in a tax sale. The defaulted owner is said to have the right of redemption
A document that transfers all rights given a trustee under a trust deed loan back to grantor after the loan has been fully repaid; also known as deed of reconveyance
1. a charge made by a lender for the use of money; 2. the type and extent of ownership in property
Verticales
Charging interest at a rate higher than the maximum rate established by state law
A market for the purchase and sale of existing mortgages, designed to provide greater liquidity for mortgages
A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized
A central banking system designed to manage the nation's economy
A mortgage loan in which the interest rate may increase or decrease at specified intervals over the life of the loan
An instrument indicating that a previously existing lien has been released and is no longer enforceable
A loan that is not insured by the FHA or guaranteed by the VA
A contract for the sale of real estate wherein the purchase price is paid in periodic installments by the purchaser, who is in possession of the property even though title is retained by the seller until final payment
A legal procedure whereby property used a security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document
A privately owned corporation that participates in the secondary market by buying conventional, FHA, and VA loans
A form of mortgage that enables homeowners age 62 or older to borrow against the equity in their homes, receiving monthly payments to help meet living costs
Default insurance on conventional loans, normally insuring the top 20% to the 25% of the loan and not the whole loan