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