Banking Wise Practice Test Study Guide Graded A+

A blank endorsement on a check {Ans: Creates a check that can be cashed by anyone - A blank endorsement is your signature only and is like cash. Anyone who holds the check can present it for payment at a bank or credit union. Therefore, a blank endorsement should not be used unless you are in the financial institution when you endorse the check. Some banks and credit unions are asking for a picture ID before they will cash a check}To qualify for a Federal Housing Administration (FHA) loan, a person must generally {Ans: fulfill income guidelines- The Federal Housing Administration (FHA) insures lenders who make mortgage loans that are riskier than regular bank loans because FHA loans are made to individuals who usually would not qualify for regular low-cost mortgages from banks (usually first-time home buyers with lower income and a weaker credit score).}Predatory lending practices generally include: {Ans: Very high interest rates and fees- Predatory lending uses abusive practices in any type of credit but the lenders primarily target applicants for home mortgages, home equity, and home refinancing loans.These lenders use deceptive advertising and high pressure salespeople and give repayment terms that the borrower cannot