Property is being sold whereby the purchaser is to continue the payments of an existing amortized loan secured by a first mortgage. In order for the buyer to assume the existing mortgage without penalty, the real estate agent should check to be sure the mortgage does not include:

A: An acceleration clause;
B: A release clause;
C: A subordination clause;
D: A requit clause.

Answer: A: An acceleration clause;

Business

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Which of the following statements is FALSE about conventional loans?

(a) Congress establishes the loan limits each year for 1-to-4-family structures (b) Lenders may not establish their own underwriting standards (c) A non-conforming loan can be sold in the secondary market (d) The GSE's dominate this market category

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Laws on pricing deal with all of the following except ________

A) patents B) price fixing C) variable pricing D) price discrimination

Business