Finance
A North Dakota lender 'services' a mortgage by:
AAppraising the property annually
BCollecting payments, managing escrow accounts, handling delinquencies, and communicating with the borrower✓ Correct
CInspecting the property monthly
DProviding tax advice to the borrower
Explanation
Mortgage servicing involves collecting monthly payments, managing escrow accounts for taxes and insurance, handling late payments and delinquencies, communicating with borrowers, and processing payoffs.
People Also Study
Related North Dakota Questions
- A North Dakota borrower who is 90 days or more behind on mortgage payments and receives a formal notice from the lender is in:Finance
- A North Dakota lender 'collects in escrow' for property taxes and insurance. This means:Finance
- A North Dakota lender's annual mortgage insurance premium (MIP) on an FHA loan of $240,000 is 0.85%. What is the monthly MIP charge added to the payment?Real Estate Math
- A North Dakota buyer qualifies for a $200,000 mortgage at 6.5% for 30 years. Using the factor of $6.32 per $1,000 borrowed, what is the estimated monthly principal and interest payment?Finance
- Under the Truth in Lending Act (TILA), what must a lender disclose to a North Dakota mortgage applicant?Finance
- A North Dakota lender refuses to make mortgage loans in certain zip codes in Fargo regardless of individual applicant qualifications. This practice is known as:Fair Housing
- In North Dakota, which of the following is a title insurance policy that protects the lender?Escrow & Title
- A North Dakota mortgage lender charges minority applicants higher interest rates than similarly qualified white applicants. This practice violates which federal law(s)?Fair Housing
Key Terms to Know
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.
EscrowA 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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Study This Topic
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →