1/3/25, 10:32 AM Champions School Of Real Estate – FINANCE Exam 2025 || Complete Questions & Answers (Graded A+) ASSURED SUCCESS Fl…
Champions School Of Real Estate – FINANCE
Exam 2025 || Complete Questions & Answers
(Graded A+) ASSURED SUCCESS
Practice questions for this set
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Studied 7 terms
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Terms in this set (89)
Eligibility - Veteran's entitlement to VA home loan
benefits under the law, based on number of
VA loan requirements days/amount of time in military service. An eli- gible
Veteran must still meet credit and income standards in
order to qualify for a VA-guaranteed loan
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,1/3/25, 10:32 AM Champions School Of Real Estate – FINANCE Exam 2025 || Complete Questions & Answers (Graded A+) ASSURED SUCCESS Fl…
- The process of creating a new mortgage loan,
including all steps taken by a lender to attract and
qualify a borrower, are considered origination
activities.
- The process of transferring funds to a title or escrow
company for disbursement is called funding.
Loan terminology - - The detailed process of evaluating a borrower's loan
origination, funding, application to determine the risk involved for the
underwriting, servicing lender is defined as underwriting.
- Servicing includes: collecting monthly payments,
maintaining records of payments and balances,
collecting and paying taxes and insurance (and
managing escrow and impound funds), remitting
funds to the note holder, and following up on
delinquencies.
- Eligibility is the Veteran's entitlement to VA home
loan benefits under the law, based on military service.
- The portion of the Veteran's loan the VA will
VA loan terminology -
guarantee a lender is called entitlement.
guaranteed, qualification,
- VA's partial guaranty on the loan protects the lender
eligibility, entitlement
against loss if the payments are not made, and is
intended to encourage lenders to offer Veterans loans
with more favorable terms.
- The primary mortgage market is made up of the
businesses that lend to borrowers for the purchase of
Primary market vs
real estate.
secondary market
- The secondary market is made up of commercial
banks purchasing and trading mortgages
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, 1/3/25, 10:32 AM Champions School Of Real Estate – FINANCE Exam 2025 || Complete Questions & Answers (Graded A+) ASSURED SUCCESS Fl…
- The front ratio is used to qualify a borrower for a
loan based upon the proposed house payment and
his or her gross monthly income (GMI). The house
payment is the monthly payment of principal, interest,
taxes, and insurance (PITI). In conventional lending, a
front ratio of 28% means that the house payment (PITI)
cannot exceed 28% of the borrower's gross monthly
income.
28% × gross monthly income = Max. monthly house
Front and back qualifying
payment
ratios and calculation
- The back ratio is the ratio of the borrower's total
recurring monthly debts, including such obliga- tions
as the house payment, payments on all installment
debts, monthly payments on all junior liens, alimony,
car lease payments, and other recurring payment
obligations. In conventional lending, it is usually 36%.
36% × gross monthly income = Max. PITI and debts
per month
All residential mortgage loan originators must now be
Loan originator
registered with the Nationwide Mortgage Licensing
registration system
System and Registry (NMLSR).
State and federal governments regulate certain
FHA loan program aspects of the industry and to encourage home
administrators ownership through loan insurance and guaranty
programs.
Federal Fair Housing statutes prohibit housing
Fair Housing Rules and
discrimination based on race, color, national origin,
protected categories
sex, religion, families with children, and disabilities.
https://quizlet.com/989359801/champions-school-of-real-estate-finance-exam-2025-complete-questions-answers-graded-a-assured-success-flash-ca… 3/20
Champions School Of Real Estate – FINANCE
Exam 2025 || Complete Questions & Answers
(Graded A+) ASSURED SUCCESS
Practice questions for this set
Learn
Studied 7 terms
Nice work, you're crushing it
Continue studying in Learn
Terms in this set (89)
Eligibility - Veteran's entitlement to VA home loan
benefits under the law, based on number of
VA loan requirements days/amount of time in military service. An eli- gible
Veteran must still meet credit and income standards in
order to qualify for a VA-guaranteed loan
https://quizlet.com/989359801/champions-school-of-real-estate-finance-exam-2025-complete-questions-answers-graded-a-assured-success-flash-ca… 1/20
,1/3/25, 10:32 AM Champions School Of Real Estate – FINANCE Exam 2025 || Complete Questions & Answers (Graded A+) ASSURED SUCCESS Fl…
- The process of creating a new mortgage loan,
including all steps taken by a lender to attract and
qualify a borrower, are considered origination
activities.
- The process of transferring funds to a title or escrow
company for disbursement is called funding.
Loan terminology - - The detailed process of evaluating a borrower's loan
origination, funding, application to determine the risk involved for the
underwriting, servicing lender is defined as underwriting.
- Servicing includes: collecting monthly payments,
maintaining records of payments and balances,
collecting and paying taxes and insurance (and
managing escrow and impound funds), remitting
funds to the note holder, and following up on
delinquencies.
- Eligibility is the Veteran's entitlement to VA home
loan benefits under the law, based on military service.
- The portion of the Veteran's loan the VA will
VA loan terminology -
guarantee a lender is called entitlement.
guaranteed, qualification,
- VA's partial guaranty on the loan protects the lender
eligibility, entitlement
against loss if the payments are not made, and is
intended to encourage lenders to offer Veterans loans
with more favorable terms.
- The primary mortgage market is made up of the
businesses that lend to borrowers for the purchase of
Primary market vs
real estate.
secondary market
- The secondary market is made up of commercial
banks purchasing and trading mortgages
https://quizlet.com/989359801/champions-school-of-real-estate-finance-exam-2025-complete-questions-answers-graded-a-assured-success-flash-ca… 2/20
, 1/3/25, 10:32 AM Champions School Of Real Estate – FINANCE Exam 2025 || Complete Questions & Answers (Graded A+) ASSURED SUCCESS Fl…
- The front ratio is used to qualify a borrower for a
loan based upon the proposed house payment and
his or her gross monthly income (GMI). The house
payment is the monthly payment of principal, interest,
taxes, and insurance (PITI). In conventional lending, a
front ratio of 28% means that the house payment (PITI)
cannot exceed 28% of the borrower's gross monthly
income.
28% × gross monthly income = Max. monthly house
Front and back qualifying
payment
ratios and calculation
- The back ratio is the ratio of the borrower's total
recurring monthly debts, including such obliga- tions
as the house payment, payments on all installment
debts, monthly payments on all junior liens, alimony,
car lease payments, and other recurring payment
obligations. In conventional lending, it is usually 36%.
36% × gross monthly income = Max. PITI and debts
per month
All residential mortgage loan originators must now be
Loan originator
registered with the Nationwide Mortgage Licensing
registration system
System and Registry (NMLSR).
State and federal governments regulate certain
FHA loan program aspects of the industry and to encourage home
administrators ownership through loan insurance and guaranty
programs.
Federal Fair Housing statutes prohibit housing
Fair Housing Rules and
discrimination based on race, color, national origin,
protected categories
sex, religion, families with children, and disabilities.
https://quizlet.com/989359801/champions-school-of-real-estate-finance-exam-2025-complete-questions-answers-graded-a-assured-success-flash-ca… 3/20
