Finance
In a mortgage, the collateral for the loan is:
AThe borrower's income
BThe real property itself✓ Correct
CThe lender's reserves
DThe title insurance policy
Explanation
In a mortgage loan, the real property secures the debt and serves as collateral. If the borrower defaults, the lender can foreclose on the property.
Related Alabama Finance Questions
- Which of the following would most likely result in a lower mortgage interest rate?
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- Fannie Mae (FNMA) and Freddie Mac (FHLMC) are:
- In Alabama, what instrument is primarily used to secure a mortgage loan with real property as collateral?
- A home equity line of credit (HELOC) is a form of:
- What is a 'conforming loan'?
- In Alabama, a mortgage document in which the borrower retains title to the property while pledging it as collateral is called:
- Under RESPA, a 'Affiliated Business Arrangement' (AfBA) disclosure must be provided when:
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →