CHAMPIONS SCHOOL OF REAL
ESTATE - REAL ESTATE FINANCE
RMLO FINAL TEST
Sending monthly payment statements and collecting
monthly payments, maintaining payment
records and following up on delinquencies. - correct answer-Servicing
The process of creating a new mortgage loan - correct answer-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 - correct answer-Loan Processing
The process of transferring funds to a title or escrow company for disbursement -
correct answer-Funding
The process of evaluating a borrower's loan application to determine the risk
involved for the lender - correct answer-Underwriting
When was the FHA created? - correct answer-1934
Who funds the FHA? - correct answer-The FHA funds itself
How long is the lifespan of a $20 bill? - correct answer-7.9 years
What is the "prime rate?" - correct answer-The interest rate that is determined by
individual banks
Who provides VA home loans? - correct answer-Private lenders
The USDA Single Family Housing Direct Home Loan is also known as
____________ - correct answer-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. - correct
answer-5 years
, A loan with no discount points is known as a _____________. - correct answer-Par
Loan
Relates to federal government spending - correct answer-Fiscal Policy
Insures deposits in banks and thrift
institutions - correct answer-Federal Deposit Insurance Corporation
Set by the board of directors of the
Federal Reserve Banks, subject to
approval by the Board of Governors - correct answer-Discount Rate
Policy that deals with interest rates
and the supply of money in the US
economy. - correct answer-Monetary Policy
Buying or selling government securities by the Federal Reserve - correct answer-
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 - correct answer-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 - correct answer-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 - correct answer-D - All of these
When was HARP introduced? - correct answer-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
d. all of these - correct answer-D - All of these
What is fiat money? - correct answer-Currency that is not backed by any precious
metals
ESTATE - REAL ESTATE FINANCE
RMLO FINAL TEST
Sending monthly payment statements and collecting
monthly payments, maintaining payment
records and following up on delinquencies. - correct answer-Servicing
The process of creating a new mortgage loan - correct answer-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 - correct answer-Loan Processing
The process of transferring funds to a title or escrow company for disbursement -
correct answer-Funding
The process of evaluating a borrower's loan application to determine the risk
involved for the lender - correct answer-Underwriting
When was the FHA created? - correct answer-1934
Who funds the FHA? - correct answer-The FHA funds itself
How long is the lifespan of a $20 bill? - correct answer-7.9 years
What is the "prime rate?" - correct answer-The interest rate that is determined by
individual banks
Who provides VA home loans? - correct answer-Private lenders
The USDA Single Family Housing Direct Home Loan is also known as
____________ - correct answer-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. - correct
answer-5 years
, A loan with no discount points is known as a _____________. - correct answer-Par
Loan
Relates to federal government spending - correct answer-Fiscal Policy
Insures deposits in banks and thrift
institutions - correct answer-Federal Deposit Insurance Corporation
Set by the board of directors of the
Federal Reserve Banks, subject to
approval by the Board of Governors - correct answer-Discount Rate
Policy that deals with interest rates
and the supply of money in the US
economy. - correct answer-Monetary Policy
Buying or selling government securities by the Federal Reserve - correct answer-
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 - correct answer-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 - correct answer-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 - correct answer-D - All of these
When was HARP introduced? - correct answer-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
d. all of these - correct answer-D - All of these
What is fiat money? - correct answer-Currency that is not backed by any precious
metals
