K
C
LO
YC
REAL ESTATE FINANCE
D
CHAMPIONS SCHOOL EXAM
U
QUESTIONS WITH CORRECT
ST
ANSWERS ALL VERIFIED BY
AN EXPERT A+ GRADED
(LATEST UPDATE)
,Loan processing - ANS The process of collecting information about a borrower in order to
build a loan file that will be used to make an underwriting decision
Underwriting - ANS The process of evaluating a borrowers loan application to determine the
risk involved for the lender
K
Funding - ANS The process of transferring funds to a title or escrow company for
disbursement
C
Servicing - ANS Sending monthly payment statements and collecting monthly payments
maintaining payment records and following up on delinquencies
LO
Origination - ANS The process of creating a new mortgage loan
Residential mortgages are divided into two broad categories - ANS
governmental loans
Conventional loans and
YC
Governmental loans include - ANS FHA, VA, USDA
Loans that are not sold in the secondary market are called - ANS Portfolio loans because the
lender holds the loan and his or her investment portfolio
D
Conventional conforming loans - ANS Conventional loans that meet the standards of Fannie
Mae and Freddie Mac
U
Four C's of good lending - ANS Character capacity capital and collateral
Character - ANS Is the measure of the willingness of a borrower to make on-time payments
ST
Capacity - ANS Is a measure of the borrowers ability to repay the debt and is demonstrated
through current earnings and job stability
Capital - ANS The sum of all assets that the borrower has accumulated savings accounts
investments and other assets demonstrate a level of financial responsibility
Collateral - ANS Something of value that can be pledged as security for repayment of the
loan
, One point discount - ANS Is one percent of the loan amount and is an upfront payment of
interest paid by borrowers do to reduce the interest rate on the loan
Mortgage broker - ANS Middleman between the borrower and the lender negotiating selling
or arranging loans to be delivered to larger investors
Mortgage banker - ANS Provide their own funds for the purpose of providing mortgage
financing as opposed to commercial banks savings associations
Correspondent lender - ANS Usually smaller in scale than mortgage bankers or brokers,
K
these lenders typically extend loans with their own funds, at their own risk.
Funding - ANS The process of transferring funds to a title or escrow company for
C
disbursement
Supply and demand - ANS The primary determinants of real estate values
LO
Supply can be restricted by a number of factors - ANS
economics And local government building codes
Land cost, construction, taxation,
Land cost, construction, taxation, economics And local government building codes - ANS
YC
The demand for real estate is affected by - ANS Growth in employment, transportation
systems, personal preference, the availability of credit, and federal government policy
What is the single most important determinant of value in residential real estate - ANS The
size of the employment market
D
What did President Bush signed into law on July 30, 2008 - ANS The housing and economic
recovery act of 2008
U
SAFE Act - ANS Designed to enhance consumer protection and reduce fraud by encouraging
states to establish minimum standards for the licensing and registration of state license
ST
mortgage loan originators
Who funds the FHA - ANS It funds itself
When was the FHA (federal housing administration) created? - ANS 1934
How long is the lifespan of a $20 bill - ANS Less than 10 years
What is the prime rate - ANS The interest rate that is determined by individual banks
C
LO
YC
REAL ESTATE FINANCE
D
CHAMPIONS SCHOOL EXAM
U
QUESTIONS WITH CORRECT
ST
ANSWERS ALL VERIFIED BY
AN EXPERT A+ GRADED
(LATEST UPDATE)
,Loan processing - ANS The process of collecting information about a borrower in order to
build a loan file that will be used to make an underwriting decision
Underwriting - ANS The process of evaluating a borrowers loan application to determine the
risk involved for the lender
K
Funding - ANS The process of transferring funds to a title or escrow company for
disbursement
C
Servicing - ANS Sending monthly payment statements and collecting monthly payments
maintaining payment records and following up on delinquencies
LO
Origination - ANS The process of creating a new mortgage loan
Residential mortgages are divided into two broad categories - ANS
governmental loans
Conventional loans and
YC
Governmental loans include - ANS FHA, VA, USDA
Loans that are not sold in the secondary market are called - ANS Portfolio loans because the
lender holds the loan and his or her investment portfolio
D
Conventional conforming loans - ANS Conventional loans that meet the standards of Fannie
Mae and Freddie Mac
U
Four C's of good lending - ANS Character capacity capital and collateral
Character - ANS Is the measure of the willingness of a borrower to make on-time payments
ST
Capacity - ANS Is a measure of the borrowers ability to repay the debt and is demonstrated
through current earnings and job stability
Capital - ANS The sum of all assets that the borrower has accumulated savings accounts
investments and other assets demonstrate a level of financial responsibility
Collateral - ANS Something of value that can be pledged as security for repayment of the
loan
, One point discount - ANS Is one percent of the loan amount and is an upfront payment of
interest paid by borrowers do to reduce the interest rate on the loan
Mortgage broker - ANS Middleman between the borrower and the lender negotiating selling
or arranging loans to be delivered to larger investors
Mortgage banker - ANS Provide their own funds for the purpose of providing mortgage
financing as opposed to commercial banks savings associations
Correspondent lender - ANS Usually smaller in scale than mortgage bankers or brokers,
K
these lenders typically extend loans with their own funds, at their own risk.
Funding - ANS The process of transferring funds to a title or escrow company for
C
disbursement
Supply and demand - ANS The primary determinants of real estate values
LO
Supply can be restricted by a number of factors - ANS
economics And local government building codes
Land cost, construction, taxation,
Land cost, construction, taxation, economics And local government building codes - ANS
YC
The demand for real estate is affected by - ANS Growth in employment, transportation
systems, personal preference, the availability of credit, and federal government policy
What is the single most important determinant of value in residential real estate - ANS The
size of the employment market
D
What did President Bush signed into law on July 30, 2008 - ANS The housing and economic
recovery act of 2008
U
SAFE Act - ANS Designed to enhance consumer protection and reduce fraud by encouraging
states to establish minimum standards for the licensing and registration of state license
ST
mortgage loan originators
Who funds the FHA - ANS It funds itself
When was the FHA (federal housing administration) created? - ANS 1934
How long is the lifespan of a $20 bill - ANS Less than 10 years
What is the prime rate - ANS The interest rate that is determined by individual banks
