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Loan Operations Vocab

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. To recuce interest-rate risk - many banks try to maintain a portfolio of ______ loans






2. Bank ______ __ ______ apply to the total lending relationship with a borrowerm not just a single loan






3. For ____ programs - the bank identifies minimum acceptable credit requirements and ha potential applicants evaluated against those requirements.






4. The interest income on a closed-end consumer loan _____ as the term extends






5. The difference between gross loss and net loss is the amount recovered from consumers after the loans have been _____ __.






6. Generally - unsecured loans tend to have the _____ delinquency rates - whereas loans secured by the borrower's home tend to have the ______ delinquency rates






7. 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






8. A credit history that shows a lot of recent activity and increased debt could indicate that the applicant has _____ debt.






9. _______ ______ 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.






10. Coverae under the Servicemembers Civil Relief Act starts on the date the servicemember recieves _____ ______






11. The act that lists the type of disclosures that lenders must make in advertising programs and when a loan application is taken.






12. The applicant's nomthly debt payments related to income determines the ____ _ ____ ratio - which is a key element in measuring capacity.






13. 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






14. 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.






15. The ________ function in the loan operations department ensures insurance documentation is obtained.






16. 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.






17. _____ are the largest providers of consumer credit information to the banking industry






18. A database containing detailed info about consumers and prospects that is used for marketing purposes is the ______






19. Individuals and families normally follow well-defined ______ patterns






20. The ______ ratio is a cost factor that represents the bank's loss experience on its consumer credit products over time






21. The C of credit called ______ addresses the kind of person the applicant is and what his or her primary behavior patterns are.






22. Compare to other direct loan products - marketing efforts for open-end loans can reach a ______ market area






23. Current quotes from a broker or newspaper - such as the Wall Street Journal - are a good source for verifying the value of _____ and ____.






24. Characteristics that may indicate a problem on an application are called __ ___






25. The first objective of the loan application process






26. To attain the objective of ______ and ____ document preparation - most banks use automated systems






27. ____ is the net value of an applicant's assets.






28. College fairs are a good place for lenders to sell these kind of loans






29. ___ is the forced sale of real estate to satisfy a debt






30. ____ of the Uniform Commercial Code governs most loans secured by personal property.






31. Credit info on judgments - bankruptcies - and liens recorded is usually obtained from ___ records






32. Fling a financing statement with the appropriate legal authority is one way to _____ a lien






33. 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.






34. _____ is the most common method of computing the interest earned on a consumer loan