Finance
Hypothecation means pledging property as collateral for a debt without:
ANotifying the lender
BTransferring possession or title to the lender✓ Correct
CRecording the mortgage
DObtaining title insurance
Explanation
Hypothecation is the pledging of property (e.g., a home) as security for a debt without surrendering possession or title. The borrower keeps the property while the lender holds a security interest.
Related Arkansas Finance Questions
- Arkansas is a 'lien theory' state. This means that when a borrower takes out a mortgage:
- In what situation would a lender require 'private mortgage insurance' (PMI)?
- Discount points paid at closing are used to:
- Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny credit based on:
- A loan in which the interest rate changes periodically based on an index is called a(n):
- Arkansas uses which security instruments to secure a real estate loan?
- An adjustable-rate mortgage (ARM) differs from a fixed-rate mortgage in that the ARM's:
- A loan-to-value (LTV) ratio of 80% on a $300,000 property means the loan amount is:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →