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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. The C of credit called ______ addresses the kind of person the applicant is and what his or her primary behavior patterns are.
highest - lowest
character
active duty
TILA
2. ____ of the Uniform Commercial Code governs most loans secured by personal property.
legal lending limits
article 9
debt cancellation - debt suspension
active duty
3. 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
education
generate applications
simple interest
goodwill
4. 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.
article 9
loan loss
attachment
account monitoring
5. Generally - unsecured loans tend to have the _____ delinquency rates - whereas loans secured by the borrower's home tend to have the ______ delinquency rates
character
highest - lowest
TILA
legal lending limits
6. A database containing detailed info about consumers and prospects that is used for marketing purposes is the ______
article 9
character
garnishment
MCIF
7. ___ is the forced sale of real estate to satisfy a debt
foreclosure
education
prescreening
loan review
8. 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.
efficient - accurate
broader
finance charge
consumer reporting agenies
9. The difference between gross loss and net loss is the amount recovered from consumers after the loans have been _____ __.
legal lending limits
goodwill
charged off
account monitoring
10. _____ is the most common method of computing the interest earned on a consumer loan
attachment
stocks - bonds
article 9
simple interest
11. _____ are the largest providers of consumer credit information to the banking industry
efficient - accurate
increases
consumer reporting agenies
loan review
12. The applicant's nomthly debt payments related to income determines the ____ _ ____ ratio - which is a key element in measuring capacity.
debt-to-income
legal lending limits
loan review
variable rate
13. 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
lifecycle
highest - lowest
garnishment
goodwill
14. _______ ______ 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.
debt cancellation - debt suspension
broader
stocks - bonds
simple interest
15. Fling a financing statement with the appropriate legal authority is one way to _____ a lien
pyramid
garnishment
perfect
generate applications
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.
article 9
debt-to-income
active duty
account monitoring
17. A credit history that shows a lot of recent activity and increased debt could indicate that the applicant has _____ debt.
pyramid
stocks - bonds
finance charge
charged off
18. Characteristics that may indicate a problem on an application are called __ ___
red flags
attachment
education
legal lending limits
19. The first objective of the loan application process
active duty
MCIF
generate applications
foreclosure
20. The interest income on a closed-end consumer loan _____ as the term extends
article 9
simple interest
prescreening
increases
21. Bank ______ __ ______ apply to the total lending relationship with a borrowerm not just a single loan
legal lending limits
perfect
pyramid
debt cancellation - debt suspension
22. To recuce interest-rate risk - many banks try to maintain a portfolio of ______ loans
active duty
variable rate
garnishment
finance charge
23. The ________ function in the loan operations department ensures insurance documentation is obtained.
loan review
prescreening
loan loss
garnishment
24. 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
TILA
finance charge
attachment
25. The ______ ratio is a cost factor that represents the bank's loss experience on its consumer credit products over time
attachment
generate applications
MCIF
loan loss
26. ____ is the net value of an applicant's assets.
charged off
pyramid
consumer reporting agenies
capital
27. For ____ programs - the bank identifies minimum acceptable credit requirements and ha potential applicants evaluated against those requirements.
prescreening
charged off
broader
court/public
28. To attain the objective of ______ and ____ document preparation - most banks use automated systems
increases
efficient - accurate
consumer reporting agenies
perfect
29. Coverae under the Servicemembers Civil Relief Act starts on the date the servicemember recieves _____ ______
legal lending limits
stocks - bonds
active duty
loan loss
30. Credit info on judgments - bankruptcies - and liens recorded is usually obtained from ___ records
court/public
pyramid
consumer reporting agenies
lifecycle
31. Individuals and families normally follow well-defined ______ patterns
finance charge
lifecycle
generate applications
consumer reporting agenies
32. The act that lists the type of disclosures that lenders must make in advertising programs and when a loan application is taken.
TILA
increases
broader
loan review
33. College fairs are a good place for lenders to sell these kind of loans
lifecycle
debt-to-income
TILA
education
34. Compare to other direct loan products - marketing efforts for open-end loans can reach a ______ market area
stocks - bonds
MCIF
broader
education