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Test your basic knowledge |
Loan Operations Vocab
Start Test
Study First
Subject
:
personal-finance
Instructions:
Answer 34 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Compare to other direct loan products - marketing efforts for open-end loans can reach a ______ market area
MCIF
account monitoring
broader
TILA
2. Generally - unsecured loans tend to have the _____ delinquency rates - whereas loans secured by the borrower's home tend to have the ______ delinquency rates
highest - lowest
goodwill
efficient - accurate
loan loss
3. Individuals and families normally follow well-defined ______ patterns
lifecycle
court/public
character
prescreening
4. College fairs are a good place for lenders to sell these kind of loans
article 9
education
legal lending limits
lifecycle
5. Fling a financing statement with the appropriate legal authority is one way to _____ a lien
stocks - bonds
debt cancellation - debt suspension
perfect
prescreening
6. For ____ programs - the bank identifies minimum acceptable credit requirements and ha potential applicants evaluated against those requirements.
foreclosure
prescreening
lifecycle
MCIF
7. The act that lists the type of disclosures that lenders must make in advertising programs and when a loan application is taken.
foreclosure
debt cancellation - debt suspension
loan loss
TILA
8. Characteristics that may indicate a problem on an application are called __ ___
court/public
loan loss
red flags
foreclosure
9. _____ are the largest providers of consumer credit information to the banking industry
active duty
finance charge
efficient - accurate
consumer reporting agenies
10. For ______ _____ programs - the bank runs the names of its current customers against a consumer reporting agency's files - using defined criteria to identify positive or negative trends.
stocks - bonds
foreclosure
account monitoring
perfect
11. According to the Truth in Lending Act - the ______ ___ is the interest plus any other charges deemed by the act to be part of the cost of credit.
finance charge
debt cancellation - debt suspension
MCIF
loan review
12. ____ of the Uniform Commercial Code governs most loans secured by personal property.
loan review
lifecycle
article 9
efficient - accurate
13. Current quotes from a broker or newspaper - such as the Wall Street Journal - are a good source for verifying the value of _____ and ____.
stocks - bonds
broader
increases
attachment
14. ____ is the net value of an applicant's assets.
attachment
capital
stocks - bonds
efficient - accurate
15. To recuce interest-rate risk - many banks try to maintain a portfolio of ______ loans
increases
finance charge
court/public
variable rate
16. To attain the objective of ______ and ____ document preparation - most banks use automated systems
debt cancellation - debt suspension
loan loss
efficient - accurate
highest - lowest
17. Bank ______ __ ______ apply to the total lending relationship with a borrowerm not just a single loan
legal lending limits
simple interest
variable rate
perfect
18. Coverae under the Servicemembers Civil Relief Act starts on the date the servicemember recieves _____ ______
active duty
foreclosure
efficient - accurate
variable rate
19. The first objective of the loan application process
generate applications
capital
stocks - bonds
charged off
20. When notifying a consumer that the loan request has been declined - lenders strive to retain the consumer's ________ by - for example - offering or recommending financial counseling services
broader
goodwill
perfect
loan loss
21. The applicant's nomthly debt payments related to income determines the ____ _ ____ ratio - which is a key element in measuring capacity.
simple interest
TILA
debt-to-income
broader
22. ___ is the forced sale of real estate to satisfy a debt
increases
account monitoring
finance charge
foreclosure
23. The C of credit called ______ addresses the kind of person the applicant is and what his or her primary behavior patterns are.
garnishment
generate applications
charged off
character
24. The ________ function in the loan operations department ensures insurance documentation is obtained.
debt cancellation - debt suspension
garnishment
foreclosure
loan review
25. A lender making a secured loan covered by the UCC first needs to create a valid ______ on the property that is to serve as collateral.
charged off
generate applications
attachment
prescreening
26. _____ is the most common method of computing the interest earned on a consumer loan
pyramid
account monitoring
goodwill
simple interest
27. Credit info on judgments - bankruptcies - and liens recorded is usually obtained from ___ records
article 9
attachment
court/public
goodwill
28. The ______ ratio is a cost factor that represents the bank's loss experience on its consumer credit products over time
lifecycle
prescreening
increases
loan loss
29. _______ ______ contracts and ______ ______ agreements incur risk - because if the event stipulate in the contract occurs - the bank must pay off the loan or assume the payments.
finance charge
active duty
debt-to-income
debt cancellation - debt suspension
30. The difference between gross loss and net loss is the amount recovered from consumers after the loans have been _____ __.
variable rate
charged off
broader
account monitoring
31. A credit history that shows a lot of recent activity and increased debt could indicate that the applicant has _____ debt.
pyramid
highest - lowest
stocks - bonds
attachment
32. The interest income on a closed-end consumer loan _____ as the term extends
increases
character
highest - lowest
legal lending limits
33. A database containing detailed info about consumers and prospects that is used for marketing purposes is the ______
MCIF
court/public
red flags
character
34. A wage _______ requires an employer to send a certain percentage of the employee's wages directly to the bank until the debt is paid in full
garnishment
pyramid
debt cancellation - debt suspension
efficient - accurate