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