Which of the following statements is not accurate regarding cal-vet loans quizlet

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Following are ten (10) definitions that you need to be able to recognize for the examination.

1) NON-RECOURSE LOAN - A loan in which the borrower is not held personally liable on the note. The lender of a non-recourse loan generally feels confident that the property used as collateral will be adequate security for the loan.

2) NON-RECOURSE CLAUSE - Real estate loans are often sold in the financial market. When a non-recourse clause is included in the sale's agreement, the seller of the security is not liable if the borrower defaults.

3) DEFAULT - The non-performance of a duty or obligation that is part of a contract. The most common occurrence of default on the part of a buyer or lessee is nonpayment of money when due. A default is normally a breach of contract, and the non-defaulting party can seek legal remedies to recover any loss. A buyer's good faith inability to obtain financing under a contingency provision of a purchase agreement is not considered a default (The performance of the contract depends on the buyer getting the property financed.), and in this case the seller must return the buyer's deposit.

4) CONDITIONAL APPROVAL (conditional or qualified commitment) - A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms. It is more formal than a preliminary loan approval. After reviewing the borrower's loan application, the lender usually decides whether to make a commitment to lend the requested funds. This application contains such information as the name and address of the borrower, place of employment, salary, bank accounts, credit references, and the like.

5) UNDERWRITING - The analysis of the extent of risk assumed in connection with a loan. Underwriting a loan includes the entire process of preparing the conditions of the loan, determining the borrower's ability to repay and subsequently deciding whether to give loan approval.

6) APPRAISAL FEES - An appraiser's fees are typically based on time and expenses; fees are never based on a percentage of the appraised value.

7) ESTOPPEL CERTIFICATE - A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct, or silence. For example, a mortgagor/trustor who certifies that he or she has no defense against the mortgagee/beneficiary would be estopped to later assert any defenses against a person who purchases the mortgage in reliance on the mortgagor's certificate of no defense.

8) EXCULPATORY CLAUSE - A clause sometimes inserted in a mortgage note in which the lender waives the right to a deficiency judgment.

As used in a lease, a clause that intends to clear or relieve the landlord from liability for tenants' personal injury and property damage. It may not, however, protect the landlord from injuries to third parties.

9) IMPOUNDS - A fund of the buyer's money that the lender sets aside for future needs relating to the parcel of property. Most lenders require an impound account to cover future payments of insurance and taxes. Sometimes this is referred to as the buyer's escrow (not the broker's).

10) DISINTERMEDIATION - The process of individuals investing their funds directly instead of placing money with banks, savings and loans, and other savings institutions. Disintermediation has a direct influence on the scarcity of money or surplus of money available for mortgages.