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






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






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






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






5. 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






6. _______ ______ 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.






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






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






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






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






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.






12. The first objective of the loan application process






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






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






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






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






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






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






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






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






21. 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.






22. 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






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






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






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






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






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






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






29. 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.






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






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






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






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






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