Champions Real Estate Finance Exam 2
(2025) || Questions & Answers (Graded A+)
Disintermediation - ANSWER - the act of moving funds from one investment arena to
another
REMIC - ANSWER - holds mortgages in trust for the benefit of investors
Conforming Loan - ANSWER - Adheres to Fannie Mae and Freddie Mac requirement
for purchase of a mortgage
Yield - ANSWER - return on an investment
Redlining - ANSWER - The practice of refusing to provide financing in a particular area
because of location
SML - ANSWER - Responsible for the chartering, regulation and supervision of Texas
thrift industry
TDHCA - ANSWER - Responsible for the regulation of the Texas manufactured housing
industry
SAFE Act - ANSWER - Designed to enhance consumer protection and reduce fraud
RMLO - ANSWER - The industry term for residential loan originators, as mandated by
the SAFE act
Monetary policy - ANSWER - policy that deals with interest rates and the supply of
money in the US economy
Fiscal Policy - ANSWER - Relates to federal government
Open-Market Operations - ANSWER - Buying or selling government securities by the
federal reserve
Discount Rate - ANSWER - Set by the board of directors of the Federal Reserve Banks
subject to approval by the Board of Governors
Loan Processing - ANSWER - The process of collecting information about a borrower in
order to build a loan file that will be used to make an underwriting decisions
Underwriting - ANSWER - The process of evaluating a borrowers loan application to
determine the risk involved for the lender
, Funding - ANSWER - The process of transferring funds to a title or escrow company for
disbursement
Congress created the Federal Housing Administration in - ANSWER - 1934
In order to qualify for exemption from capital gains, the property must have been the
primary residence for two of the previous ___ years - ANSWER - 5 years
A loan with no discount points is known as a - ANSWER - Par loan
What is Fiat money - ANSWER - Currency that is not backed up by any precious metals
At the treasury level, funds can be raised to pay for government spending by increasing
borrowing and _____ - ANSWER - Raising Taxes
The ________ is the interest rate a reserve bank charges eligible financial to borrow
funds on a short term basis - ANSWER - Discount rate
The Fed uses three monterary policy tools to influence the cost and availability of credit:
Open Market operations, the discount rate and ____ - ANSWER - Reserve
Requirements
Through which avenue does the US Treasury promote economic growth? - ANSWER -
Policies that support job creation
Which of the following is NOT a function of the Department of the Treasury - ANSWER -
Campaign finance reform
According to the Taxpayer Bill of Rights, taxpayers have the right to: - ANSWER - Pay
no more than the correct amount of tax, be informed, privacy
When was HARP introduced? - ANSWER - 2009
Which refinancing option does HARP offer? - ANSWER - Change from an adjustable to
a fixed-rate mortgage, lower interest rates, shorter term loans
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in
2010 established the - ANSWER - Consumer Financial Protection Bureau
Real Estate transactions regulated by the Office of Consumer Credit Commissioner
include which of the following? - ANSWER - Home equity loans, Home improvement
loans and secondary mortgages... all of these
The Community Reinvestment Act, enacted in _____ ensures that banks serve the
needs of the community in which they were chartered - ANSWER - 1977
(2025) || Questions & Answers (Graded A+)
Disintermediation - ANSWER - the act of moving funds from one investment arena to
another
REMIC - ANSWER - holds mortgages in trust for the benefit of investors
Conforming Loan - ANSWER - Adheres to Fannie Mae and Freddie Mac requirement
for purchase of a mortgage
Yield - ANSWER - return on an investment
Redlining - ANSWER - The practice of refusing to provide financing in a particular area
because of location
SML - ANSWER - Responsible for the chartering, regulation and supervision of Texas
thrift industry
TDHCA - ANSWER - Responsible for the regulation of the Texas manufactured housing
industry
SAFE Act - ANSWER - Designed to enhance consumer protection and reduce fraud
RMLO - ANSWER - The industry term for residential loan originators, as mandated by
the SAFE act
Monetary policy - ANSWER - policy that deals with interest rates and the supply of
money in the US economy
Fiscal Policy - ANSWER - Relates to federal government
Open-Market Operations - ANSWER - Buying or selling government securities by the
federal reserve
Discount Rate - ANSWER - Set by the board of directors of the Federal Reserve Banks
subject to approval by the Board of Governors
Loan Processing - ANSWER - The process of collecting information about a borrower in
order to build a loan file that will be used to make an underwriting decisions
Underwriting - ANSWER - The process of evaluating a borrowers loan application to
determine the risk involved for the lender
, Funding - ANSWER - The process of transferring funds to a title or escrow company for
disbursement
Congress created the Federal Housing Administration in - ANSWER - 1934
In order to qualify for exemption from capital gains, the property must have been the
primary residence for two of the previous ___ years - ANSWER - 5 years
A loan with no discount points is known as a - ANSWER - Par loan
What is Fiat money - ANSWER - Currency that is not backed up by any precious metals
At the treasury level, funds can be raised to pay for government spending by increasing
borrowing and _____ - ANSWER - Raising Taxes
The ________ is the interest rate a reserve bank charges eligible financial to borrow
funds on a short term basis - ANSWER - Discount rate
The Fed uses three monterary policy tools to influence the cost and availability of credit:
Open Market operations, the discount rate and ____ - ANSWER - Reserve
Requirements
Through which avenue does the US Treasury promote economic growth? - ANSWER -
Policies that support job creation
Which of the following is NOT a function of the Department of the Treasury - ANSWER -
Campaign finance reform
According to the Taxpayer Bill of Rights, taxpayers have the right to: - ANSWER - Pay
no more than the correct amount of tax, be informed, privacy
When was HARP introduced? - ANSWER - 2009
Which refinancing option does HARP offer? - ANSWER - Change from an adjustable to
a fixed-rate mortgage, lower interest rates, shorter term loans
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in
2010 established the - ANSWER - Consumer Financial Protection Bureau
Real Estate transactions regulated by the Office of Consumer Credit Commissioner
include which of the following? - ANSWER - Home equity loans, Home improvement
loans and secondary mortgages... all of these
The Community Reinvestment Act, enacted in _____ ensures that banks serve the
needs of the community in which they were chartered - ANSWER - 1977
