CHAMPIONS REAL ESTATE FINANCE
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE
●● Mortgage Banker
Answer: Provide their own funds for the purpose of providing mortgage
financing
●● Correspondent Lender
Answer: Smaller in scale then mortgage bankers or brokers, these
lenders typically extended loans with their own funds at their own risk
●● Origination
Answer: The process of creating a new mortgage loan
●● Underwriting
Answer: Detailed process of evaluating a borrowers loan application to
determine the risk involved for the lender
●● Closing/Settlement
Answer: Consummation of a contractual real estate transaction in which
all appropriate documents are signed and the proceeds of the mortgage
loan are then distributed by the lender
,●● Funding
Answer: The process of transferring funds into a title or escrow
company for disbursement
●● Housing and Economic Recovery Act of 2008 (HERA)
Answer: Designed to assist with recovery and revitalization of America's
residential housing market
●● SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act)
Answer: Sets a minimum standard for licensing and registering
mortgage loan originators.
●● M1
Answer: Sum of currency held by the public and transaction deposits at
depository institutions
●● M2
Answer: M1 plus savings accounts, certificates of deposit, and other
liquid assets
●● monetary policy
, Answer: Maintenance of a stable money supply that provides for growth
in the economy while keeping inflation in check. Federal reserve is
responsible for monetary policy
●● fiscal policy
Answer: Federal government spending.
●● The Federal Reserve
Answer: The central banking system of the United States
●● Monetary inflation
Answer: Excess of money supply in the market
●● discount rate
Answer: Interest rate a Reserve Bank charges eligible financial
institutions to borrow funds on a short term basis.
●● federal funds rate
Answer: Is the rate that the federal reserve charges banks for unsecured
loans most of which are for a very short term (sometimes overnight)
banks use these to meet their liquidity requirements when withdrawals
threaten to exceed cash on hand
●● US Treasury
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE
●● Mortgage Banker
Answer: Provide their own funds for the purpose of providing mortgage
financing
●● Correspondent Lender
Answer: Smaller in scale then mortgage bankers or brokers, these
lenders typically extended loans with their own funds at their own risk
●● Origination
Answer: The process of creating a new mortgage loan
●● Underwriting
Answer: Detailed process of evaluating a borrowers loan application to
determine the risk involved for the lender
●● Closing/Settlement
Answer: Consummation of a contractual real estate transaction in which
all appropriate documents are signed and the proceeds of the mortgage
loan are then distributed by the lender
,●● Funding
Answer: The process of transferring funds into a title or escrow
company for disbursement
●● Housing and Economic Recovery Act of 2008 (HERA)
Answer: Designed to assist with recovery and revitalization of America's
residential housing market
●● SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act)
Answer: Sets a minimum standard for licensing and registering
mortgage loan originators.
●● M1
Answer: Sum of currency held by the public and transaction deposits at
depository institutions
●● M2
Answer: M1 plus savings accounts, certificates of deposit, and other
liquid assets
●● monetary policy
, Answer: Maintenance of a stable money supply that provides for growth
in the economy while keeping inflation in check. Federal reserve is
responsible for monetary policy
●● fiscal policy
Answer: Federal government spending.
●● The Federal Reserve
Answer: The central banking system of the United States
●● Monetary inflation
Answer: Excess of money supply in the market
●● discount rate
Answer: Interest rate a Reserve Bank charges eligible financial
institutions to borrow funds on a short term basis.
●● federal funds rate
Answer: Is the rate that the federal reserve charges banks for unsecured
loans most of which are for a very short term (sometimes overnight)
banks use these to meet their liquidity requirements when withdrawals
threaten to exceed cash on hand
●● US Treasury
