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