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