CHAMPIONS SCHOOL OF REAL ESTATE - FINANCE
EXAM UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Champions School Of Real Estate - FINANCE
Answer:
Exam Coverage
Exam coverage for the Champions School of Real Estate - Finance Exam includes the fundamental
principles of real estate finance, mortgage lending, and financial practices required for real estate
professionals in Texas. It focuses on the role of finance in real estate transactions, sources of mortgage
financing, loan qualification, underwriting standards, conventional and government-backed loan programs,
and the responsibilities of borrowers, lenders, and real estate license holders. The exam also evaluates
understanding of federal and state lending laws, consumer protection regulations, and ethical practices in
real estate finance.
Question:
2. A young couple would like to buy a rundown house, with a high credit score, but the lender refuses to
sell in that location. What is the lender guilty of?
Answer:
Redlining under the Community Reinvestment Act (CRA)
Question:
3. The process of evaluating a borrower's loan application to determine the risk involved for the lender is
Answer:
Underwriting
Question:
4. Which of the following Federal Fair Housing statues prohibit housing discrimination
Answer:
National Origin
Question:
5. All residential mortgage loan originators must now be registered with the ______.
Answer:
Nationwide Mortgage Licensing System and Registry (NMLSR)
Question:
6. The process of creating a new mortgage loan, including all steps taken by a lender to attract and qualify
a borrower are _____.
Answer:
Origination activities
Question:
7. The ______ prohibits Redlining.
, Answer:
Community Reinvestment Act
Question:
8. The state of Texas plays a role in affordable housing through the _______.
Answer:
The Texas Department of Housing and Community Affairs (TDHCA)
Question:
9. To participate in the Texas Veterans Loan Board Program a veteran can obtain any of these loans:
A. VA
B. FHA
C. Conventional
D. All of the above
Answer:
D. All of the above
Question:
10. Eligible borrower under the VLB Veterans Housing Assistance Program (VHAP) include:
A. Disabled
B. Texas Born/ Native
C. Honorable and Dishonorably discharged
D. Surviving spouses of Texas veterans
Answer:
D. Surviving spouses of Texas Veterans
Question:
11. How many days according to the Truth in Lending disclosure when must the buyer receive the Closing
Disclosure (CD) from the lender?
Answer:
Three business days before the customer closes the loan.
Question:
12. _______ was established in 1970 for the purpose of purchasing mortgages in the Secondary Market.
Answer:
Freddie Mac
Question:
13. A claim, lien, charge, or liability attached to and binding real property is an
Answer:
encumbrance
Question:
14. A ______ is a right given by law to creditors to have debts paid out of the property of a defaulting
debater.
Answer:
Lien
EXAM UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Question:
1. Champions School Of Real Estate - FINANCE
Answer:
Exam Coverage
Exam coverage for the Champions School of Real Estate - Finance Exam includes the fundamental
principles of real estate finance, mortgage lending, and financial practices required for real estate
professionals in Texas. It focuses on the role of finance in real estate transactions, sources of mortgage
financing, loan qualification, underwriting standards, conventional and government-backed loan programs,
and the responsibilities of borrowers, lenders, and real estate license holders. The exam also evaluates
understanding of federal and state lending laws, consumer protection regulations, and ethical practices in
real estate finance.
Question:
2. A young couple would like to buy a rundown house, with a high credit score, but the lender refuses to
sell in that location. What is the lender guilty of?
Answer:
Redlining under the Community Reinvestment Act (CRA)
Question:
3. The process of evaluating a borrower's loan application to determine the risk involved for the lender is
Answer:
Underwriting
Question:
4. Which of the following Federal Fair Housing statues prohibit housing discrimination
Answer:
National Origin
Question:
5. All residential mortgage loan originators must now be registered with the ______.
Answer:
Nationwide Mortgage Licensing System and Registry (NMLSR)
Question:
6. The process of creating a new mortgage loan, including all steps taken by a lender to attract and qualify
a borrower are _____.
Answer:
Origination activities
Question:
7. The ______ prohibits Redlining.
, Answer:
Community Reinvestment Act
Question:
8. The state of Texas plays a role in affordable housing through the _______.
Answer:
The Texas Department of Housing and Community Affairs (TDHCA)
Question:
9. To participate in the Texas Veterans Loan Board Program a veteran can obtain any of these loans:
A. VA
B. FHA
C. Conventional
D. All of the above
Answer:
D. All of the above
Question:
10. Eligible borrower under the VLB Veterans Housing Assistance Program (VHAP) include:
A. Disabled
B. Texas Born/ Native
C. Honorable and Dishonorably discharged
D. Surviving spouses of Texas veterans
Answer:
D. Surviving spouses of Texas Veterans
Question:
11. How many days according to the Truth in Lending disclosure when must the buyer receive the Closing
Disclosure (CD) from the lender?
Answer:
Three business days before the customer closes the loan.
Question:
12. _______ was established in 1970 for the purpose of purchasing mortgages in the Secondary Market.
Answer:
Freddie Mac
Question:
13. A claim, lien, charge, or liability attached to and binding real property is an
Answer:
encumbrance
Question:
14. A ______ is a right given by law to creditors to have debts paid out of the property of a defaulting
debater.
Answer:
Lien
