RMLO SAFE – Champion Questions &
Answers
Fair Housing Act Correct Ans-A federal law that prohibits discrimination by direct providers
of housing such as landlords and real estate companies, as well as banks or lenders and
homeowners insurance companies on the basis of race, color, religion, sex, national origin,
family status and disability.
Federal Deposit Insurance Corporation (FDIC) Correct Ans-An agency of the U.S. government
that manages the bank insurance funds. This agency insures deposits at banks and other
qualifying financial institutions up to $100,000 per account in interest and principal. The
insurance is mandatory for all nationally chartered banks and all banks that are members of the
Federal Reserve System.
Federal Home Loan Mortgage Corporation - FHLMC (Freddie Mac) Correct Ans-A
stockholder-owned corporation created by Congress that purchases conventional mortgages in
the secondary mortgage marked from insured depository institutions and HUD approved
mortgage bankers.
Federal Housing Administration (FHA) Correct Ans-The federal agency under the Department
of Housing and Urban Development (HUD) that insures certain residential mortgages.
Federal National Mortgage Association - FNMA (Fannie Mae) Correct Ans-A privately held
enterprise that purchases mortgages from lenders, assembles them into packages and sells
them to investors - it is also known as GSE - Government Sponsored Enterprise
, Federal Trade Commission (FTC) Correct Ans-A federal government agency of the United
Sates created to protect consumers and promote competition.
Finance Charge Correct Ans-the cost of consumer credit expressed as a dollar amount. It
includes the amount of interest you will pay during the terms of the loan, origination points and
certain other items. Some closing costs are not treated as finance charges.
Financial Crimes Enforcement Network (FinCEN) Correct Ans-A bureau within the U.S.
Treasury that is responsible for overseeing, implementing, and enforcing laws, regulations, and
policies designed to combat money laundering and financial crime.
Forbearance Correct Ans-A lenders decision to refrain from taking legal action against a
borrower who is delinquent in making payments - usually the result of the borrower negotiating
terms to bring the overdue payments up to date.
Good Faith Estimate (GFE) Correct Ans-An estimate of all closing fees including all escrow
items as well as lender charges. The lender has three days to give this to the borrower after the
submission of a loan application. Used primarily for Reverse Mortgages and Home Equity Line of
Credit (HELOC) transactions.
Government Loan Correct Ans-A loan that is insured by the Federal Housing Administration
(FHA), guaranteed by the Department of Veterans Affairs (VA) or guaranteed by the Rural
Housing Service (RHS). The insurance protects the lender (not the borrower) if a borrower
Answers
Fair Housing Act Correct Ans-A federal law that prohibits discrimination by direct providers
of housing such as landlords and real estate companies, as well as banks or lenders and
homeowners insurance companies on the basis of race, color, religion, sex, national origin,
family status and disability.
Federal Deposit Insurance Corporation (FDIC) Correct Ans-An agency of the U.S. government
that manages the bank insurance funds. This agency insures deposits at banks and other
qualifying financial institutions up to $100,000 per account in interest and principal. The
insurance is mandatory for all nationally chartered banks and all banks that are members of the
Federal Reserve System.
Federal Home Loan Mortgage Corporation - FHLMC (Freddie Mac) Correct Ans-A
stockholder-owned corporation created by Congress that purchases conventional mortgages in
the secondary mortgage marked from insured depository institutions and HUD approved
mortgage bankers.
Federal Housing Administration (FHA) Correct Ans-The federal agency under the Department
of Housing and Urban Development (HUD) that insures certain residential mortgages.
Federal National Mortgage Association - FNMA (Fannie Mae) Correct Ans-A privately held
enterprise that purchases mortgages from lenders, assembles them into packages and sells
them to investors - it is also known as GSE - Government Sponsored Enterprise
, Federal Trade Commission (FTC) Correct Ans-A federal government agency of the United
Sates created to protect consumers and promote competition.
Finance Charge Correct Ans-the cost of consumer credit expressed as a dollar amount. It
includes the amount of interest you will pay during the terms of the loan, origination points and
certain other items. Some closing costs are not treated as finance charges.
Financial Crimes Enforcement Network (FinCEN) Correct Ans-A bureau within the U.S.
Treasury that is responsible for overseeing, implementing, and enforcing laws, regulations, and
policies designed to combat money laundering and financial crime.
Forbearance Correct Ans-A lenders decision to refrain from taking legal action against a
borrower who is delinquent in making payments - usually the result of the borrower negotiating
terms to bring the overdue payments up to date.
Good Faith Estimate (GFE) Correct Ans-An estimate of all closing fees including all escrow
items as well as lender charges. The lender has three days to give this to the borrower after the
submission of a loan application. Used primarily for Reverse Mortgages and Home Equity Line of
Credit (HELOC) transactions.
Government Loan Correct Ans-A loan that is insured by the Federal Housing Administration
(FHA), guaranteed by the Department of Veterans Affairs (VA) or guaranteed by the Rural
Housing Service (RHS). The insurance protects the lender (not the borrower) if a borrower
