Champions Real Estate Finance Exam Questions
and Answers 202
6
_____ is the consummation of a contractual real estate transaction in which all appropriate documents
are signed, and the mortgage loan proceeds are disbursed by the lender.
- Answer- Closing
The primary determinants of real estate values are supply and _____.
- Answer- Demand
_____ is something of value that can be pledged as security for repayment of- aAnswer
loan. -
Collateral
Servicing includes which of the following activities?
- Answer- Maintaining records of payment
The monetary policies of the _____affects interest rates and the availability of- Answer
funds. - Federal
Reserve
An excess supply of money in the market results in monetary _____.
- Answer- Inflation
Which agency insures deposits in banks and thrift institutions for up to $250,000?
- Answer- The
Federal Deposit Insurance Corporation
The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow funds on a
short-term basis.- Answer- Discount rate
Raising taxes and increasing borrowing are two ways at the treasury level
- Answer
to: - Raise funds to
pay for government spending
The Fed uses three primary monetary policy tools to influence the cost and availability of credit: open
market operations, the discount rate, and _____.
- Answer- Reserve requirements
When the costs of production and services increase, causing manufacturing prices to rise, it is called
_____.- Answer- Cost-push inflation
Which of the following transactions is exempt from RESPA?
- Answer- Temporary loans
, Under the _____, the use of certain terms in an advertisement triggers the need for full disclosure of
lending terms.- Answer- Truth in Lending Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____.
- Answer-
Consumer Financial Protection Bureau
How can Sylvia ensure that Victor is properly licensed as an RMLO?
- Answer- She can look him up in
the NMLSR
The secondary mortgage market was designed to provide greater liquidity to the residential real estate
market, primarily by _____.
- Answer- The sale of mortgage loans as investments
Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae requirements for purchase
are called _____.- Answer- Conforming loans
Which of the following housing objectives does Fannie Mae address?
- Answer- Regional imbalances
of available mortgage credit, The origination of mortgages for sale, The standardization of mortgage
loans
A _____ lender is one who funds mortgage loans from deposits on hand, retaining the loans long term.
- Answer- Portfolio
is a government-sponsored enterprise with the mission of providing a secondary market for
agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative
loans.- Answer- Farmer Mac
The secondary market provides greater _____ to the residential real estate market by providing a
steady supply of funds from investors.
- Answer- Liquidity
Fannie Mae operates with _____ to enhance the flow of funds through the secondary market to home
buyers.- Answer- Private capital
The two largest issuers of Real Estate Mortgage Investment Conduits are _____ and-_____.
Answer-
Fannie Mae and Freddie Mac
Which of the following statements is INCORRECT?
- Answer- Ginnie Mae sells mortgage
-backed
securities and purchases mortgage loans.
- Answer-
and Answers 202
6
_____ is the consummation of a contractual real estate transaction in which all appropriate documents
are signed, and the mortgage loan proceeds are disbursed by the lender.
- Answer- Closing
The primary determinants of real estate values are supply and _____.
- Answer- Demand
_____ is something of value that can be pledged as security for repayment of- aAnswer
loan. -
Collateral
Servicing includes which of the following activities?
- Answer- Maintaining records of payment
The monetary policies of the _____affects interest rates and the availability of- Answer
funds. - Federal
Reserve
An excess supply of money in the market results in monetary _____.
- Answer- Inflation
Which agency insures deposits in banks and thrift institutions for up to $250,000?
- Answer- The
Federal Deposit Insurance Corporation
The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow funds on a
short-term basis.- Answer- Discount rate
Raising taxes and increasing borrowing are two ways at the treasury level
- Answer
to: - Raise funds to
pay for government spending
The Fed uses three primary monetary policy tools to influence the cost and availability of credit: open
market operations, the discount rate, and _____.
- Answer- Reserve requirements
When the costs of production and services increase, causing manufacturing prices to rise, it is called
_____.- Answer- Cost-push inflation
Which of the following transactions is exempt from RESPA?
- Answer- Temporary loans
, Under the _____, the use of certain terms in an advertisement triggers the need for full disclosure of
lending terms.- Answer- Truth in Lending Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____.
- Answer-
Consumer Financial Protection Bureau
How can Sylvia ensure that Victor is properly licensed as an RMLO?
- Answer- She can look him up in
the NMLSR
The secondary mortgage market was designed to provide greater liquidity to the residential real estate
market, primarily by _____.
- Answer- The sale of mortgage loans as investments
Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae requirements for purchase
are called _____.- Answer- Conforming loans
Which of the following housing objectives does Fannie Mae address?
- Answer- Regional imbalances
of available mortgage credit, The origination of mortgages for sale, The standardization of mortgage
loans
A _____ lender is one who funds mortgage loans from deposits on hand, retaining the loans long term.
- Answer- Portfolio
is a government-sponsored enterprise with the mission of providing a secondary market for
agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative
loans.- Answer- Farmer Mac
The secondary market provides greater _____ to the residential real estate market by providing a
steady supply of funds from investors.
- Answer- Liquidity
Fannie Mae operates with _____ to enhance the flow of funds through the secondary market to home
buyers.- Answer- Private capital
The two largest issuers of Real Estate Mortgage Investment Conduits are _____ and-_____.
Answer-
Fannie Mae and Freddie Mac
Which of the following statements is INCORRECT?
- Answer- Ginnie Mae sells mortgage
-backed
securities and purchases mortgage loans.
- Answer-
