Champions School Of Real Estate – Finance
Exam || Complete Questions & Verified
Answers (Graded A+)
Question 1
What was the Community Reinvestment Act (CRA)?
Correct Answer
Law against bank to ensure that banks would serve the needs of the community
Question 2
This ____ is allowed in many states if the mortgagee includes a power of sale clause.
Correct Answer
Power of Sale
Question 3
VA loans needs ____% downpayment
Correct Answer
0
Question 4
FHA has a nonpayment as low as...
Correct Answer
3.5%
Page 1 of 119
,Question 5
A clause that gives the borrower the ability to replace the primary instrument with
another without affecting the subordinate instrument's position
Correct Answer
Lifting clause
Question 6
Addresses imbalance of mortgage credit among regions of the unite state by making
funds available. (focus attention to help pump more money into the economy)
Correct Answer
Fannie Mae
Question 7
When a buyer wants to purchase a residential property in need of repair, the buyer
has to obtain _______ first to purchase the dwelling, additional financing to do the
_______, and a permeant mortgage when the work is complete to pay of the interim
loans with a permeant mortgage
Correct Answer
1) financing
2) rehabilitation construction
Question 8
Used as the best indicator of value for existing property
Correct Answer
Sales Comparison Approach
Question 9
An ______ might also be an ideal product for the borrower that believes that the trend
in mortgages rate is downward
Correct Answer
ARM
Page 2 of 119
,Question 10
The borrower may be responsible for paying a deficiency judgement which is...
Correct Answer
Difference between what is owned on the mortgagee and the price the home sells
for at the foreclosure auction
Question 11
The ______ is a mortgage insurance program that protects the lender from loss in the
event of default by the borrower by insuring the full amount of the loan
Correct Answer
FHA
Question 12
Any excess money left over from the forced sale is given to the ______
Correct Answer
Debtor (borrower)
Question 13
A borrower is known as a
Correct Answer
Mortgagor
Question 14
The practice of refusing to provide financing in a particular area because of the
location
Correct Answer
Redlining
Page 3 of 119
, Question 15
Eligibility address the question:
Correct Answer
Is the veteran able to obtain a VA loan
Question 16
The most probable price which a property should bring in an open market is...
Correct Answer
Market price
Question 17
Allows lenders to originate mortgage for sale rather than for portfolio investment.
(lower rates better fees)
Correct Answer
Fannie Mae
Question 18
Which agency insures deposits in bank and thrift institution for up to $250,000?
Correct Answer
Federal Deposit Insurance Corporation
Question 19
Chronogical age
Correct Answer
actual age in years, months, and days
Question 20
A ______ is a pledge of real estate as security for repayment of a debt
Correct Answer
Mortgage
Page 4 of 119
Exam || Complete Questions & Verified
Answers (Graded A+)
Question 1
What was the Community Reinvestment Act (CRA)?
Correct Answer
Law against bank to ensure that banks would serve the needs of the community
Question 2
This ____ is allowed in many states if the mortgagee includes a power of sale clause.
Correct Answer
Power of Sale
Question 3
VA loans needs ____% downpayment
Correct Answer
0
Question 4
FHA has a nonpayment as low as...
Correct Answer
3.5%
Page 1 of 119
,Question 5
A clause that gives the borrower the ability to replace the primary instrument with
another without affecting the subordinate instrument's position
Correct Answer
Lifting clause
Question 6
Addresses imbalance of mortgage credit among regions of the unite state by making
funds available. (focus attention to help pump more money into the economy)
Correct Answer
Fannie Mae
Question 7
When a buyer wants to purchase a residential property in need of repair, the buyer
has to obtain _______ first to purchase the dwelling, additional financing to do the
_______, and a permeant mortgage when the work is complete to pay of the interim
loans with a permeant mortgage
Correct Answer
1) financing
2) rehabilitation construction
Question 8
Used as the best indicator of value for existing property
Correct Answer
Sales Comparison Approach
Question 9
An ______ might also be an ideal product for the borrower that believes that the trend
in mortgages rate is downward
Correct Answer
ARM
Page 2 of 119
,Question 10
The borrower may be responsible for paying a deficiency judgement which is...
Correct Answer
Difference between what is owned on the mortgagee and the price the home sells
for at the foreclosure auction
Question 11
The ______ is a mortgage insurance program that protects the lender from loss in the
event of default by the borrower by insuring the full amount of the loan
Correct Answer
FHA
Question 12
Any excess money left over from the forced sale is given to the ______
Correct Answer
Debtor (borrower)
Question 13
A borrower is known as a
Correct Answer
Mortgagor
Question 14
The practice of refusing to provide financing in a particular area because of the
location
Correct Answer
Redlining
Page 3 of 119
, Question 15
Eligibility address the question:
Correct Answer
Is the veteran able to obtain a VA loan
Question 16
The most probable price which a property should bring in an open market is...
Correct Answer
Market price
Question 17
Allows lenders to originate mortgage for sale rather than for portfolio investment.
(lower rates better fees)
Correct Answer
Fannie Mae
Question 18
Which agency insures deposits in bank and thrift institution for up to $250,000?
Correct Answer
Federal Deposit Insurance Corporation
Question 19
Chronogical age
Correct Answer
actual age in years, months, and days
Question 20
A ______ is a pledge of real estate as security for repayment of a debt
Correct Answer
Mortgage
Page 4 of 119
