What is 'mortgage servicing' and how does it affect Delaware homeowners?
Why The administration of a mortgage loan after origination — collecting payments, maintaining escrow accounts, handling delinquencies, and (when necessary) initiating foreclosure Is Correct
Answer B: The administration of a mortgage loan after origination — collecting payments, maintaining escrow accounts, handling delinquencies, and (when necessary) initiating foreclosure
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Delaware Questions
- Plottage value results from:Property Valuation
- What is 'escrow impound account' on a Delaware mortgage loan?Finance
- A Delaware property generates $3,200 per month in rent. The mortgage payment (P&I) is $1,800/month, property taxes are $250/month, insurance is $100/month, and maintenance averages $200/month. What is the monthly cash flow?Real Estate Math
- What is 'mortgage servicing rights' (MSR) in the Delaware mortgage market?Finance
- A Delaware real estate broker operates without maintaining errors and omissions (E&O) insurance. Under Delaware law, this is:Delaware License Law
- A Delaware owner earns $3,600/month rent. Monthly expenses: mortgage $1,800, taxes $350, insurance $120, maintenance $230. What is the monthly cash flow?Real Estate Math
- A Delaware property is appraised at $310,000. The lender will loan 80% of appraised value. What is the maximum loan amount?Finance
- A Delaware property owner who dies intestate (without a will) has their property distributed according to:Property Ownership
Key Terms to Know
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →