CHAMPIONS SCHOOL OF REAL ESTATE FINANCE EXAM QUESTIONS WITH CORRECT ANSWERS ALL VERIFIED BY AN EXPERT A+ GRADED (LATEST UPDATE)

Sending monthly payment statements and collecting monthly payments, maintaining payment records and following up on delinquencies. - ANS Servicing The process of creating a new mortgage loan - ANS Origination The process of collecting information about a borrower in order to build a loan file that will be used to make an underwriting decision - ANS Loan Processing The process of transferring funds to a title or escrow company for disbursement - ANS Funding The process of evaluating a borrower's loan application to determine the risk involved for the lender - ANS Underwriting When was the FHA created? - ANS 1934 Who funds the FHA? - ANS The FHA funds itself How long is the lifespan of a $20 bill? - ANS 7.9 years What is the "prime rate?" - ANS The interest rate that is determined by individual banks Who provides VA home loans? - ANS Private lenders The USDA Single Family Housing Direct Home Loan is also known as ____________ - ANS Section 502 Direct Loan Program In order to qualify for exemption from capital gains, the property must have been the primary residence for two of the previous _______________ years. - ANS 5 years A loan with no discount points is known as a _____________. - ANS Par Loan Relates to federal government spending - ANS Fiscal Policy Insures deposits in banks and thrift institutions - ANS Federal Deposit Insurance Corporation Set by the board of directors of the Federal Reserve Banks, subject to approval by the Board of Governors - ANS Discount Rate Policy that deals with interest rates and the supply of money in the US economy. - ANS Monetary Policy Buying or selling government securities by the Federal Reserve - ANS Open-Market Operations Through which avenue does the US Treasury promote economic growth? A - Legislating tax cuts to stimulate the economy B - Policies that support job creation C - Giving grants to government enterprises D - All of these - ANS B - Policies that support job creation Which of the following is NOT a function of the Department of the Treasury? A - Enforcing federal finance and tax laws B - Currency and coinage C - Campaign finance reform D - Supervising national banks and thrift institutions - ANS C - Campaign finance reform According to the Taxpayer Bill of Rights, taxpayers have the right to: a. pay no more than the correct amount of tax b. be informed c. privacy d. all of these - ANS D - All of these When was HARP introduced? - ANS 2009 Which refinancing option does HARP offer? a. change from an adjustable to a fixed rate mortgage b. lower interest rates c. shorter term loans