Finance
What is a 'guaranty' versus 'co-signing' on an Oregon mortgage loan?
ABoth are identical in legal effect
BA guaranty is a secondary obligation where the guarantor pays only if the primary borrower defaults; co-signing makes the co-signer equally and primarily liable from the start✓ Correct
CA guaranty requires collateral; co-signing does not
DCo-signing is prohibited on FHA loans; guaranties are permitted
Explanation
A co-signer is a co-borrower who is equally and primarily liable for the debt from day one — the lender can pursue either the co-signer or the primary borrower without first attempting collection from the primary borrower. A guarantor has a secondary obligation — the lender must generally first exhaust remedies against the primary borrower before pursuing the guarantor.
People Also Study
Related Oregon Questions
- Under the federal Truth in Lending Act (TILA/TRID), which disclosure must a lender provide to a borrower within 3 business days of receiving a mortgage loan application?Finance
- An Oregon borrower's loan is being 'serviced' by a company different from the original lender. 'Loan servicing' refers to:Finance
- A buyer in Oregon uses an FHA loan. Who insures the lender against losses if the buyer defaults?Finance
- Under RESPA, a lender may NOT require a borrower to use a specific title company as a condition of obtaining a loan in Oregon unless:Finance
- An Oregon buyer's monthly income is $7,500. Their existing monthly debts (car, student loan) total $600. The lender allows a maximum back-end DTI of 43%. What is the maximum monthly mortgage payment (PITI)?Real Estate Math
- In Oregon, when a mortgage loan is paid off in full, the lender or trustee must record which document to clear the title?Escrow & Title
- Oregon's Residential Landlord and Tenant Act (ORLTA) generally applies to:Property Management
- Under Oregon law, a broker who earns a referral fee from a lender for directing clients to that lender without disclosure is:Agency
Key Terms to Know
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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
Math Concepts
Study This Topic
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →