CHAMPIONS REAL ESTATE FINANCE
FINAL PAPER PRACTICE QUESTIONS WITH
VERIFIED ANSWERS PACKAGE
●● 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.
●● Servicing
Answer: Sending monthly payment statements and collecting monthly
payments, maintaining payment records and following up on
delinquencies.
●● Origination
Answer: The process of creating a new mortgage loan.
●● Character
Answer: A measure of the willingness of a borrower to make on-time
payments. Credit character is resealed in the borrowers credit report.
,●● Capacity
Answer: A measure of the borrowers ability to repay the debt, and is
demonstrated through current earnings and job stability.
●● Capital
Answer: The sum of all assets that the borrower has accumulated.
●● When was the FHA created?
a. 1929
b. 1934
c. 1912
d. 2008
Answer: B
●● Who funds the FHA?
a. The American tax payers
b. The FED
c. Fannie Mae
d. The FHA funds itself
,Answer: D
●● How long is the lifespan of a $20 bill?
a. more than 15 years
b. less than 10 years
c. less than 5 years
d. more than 10 years
Answer: B
●● What is the prime rate?
a. The interest rate that is determine by the President
b. The interest rate that is determine by Congress
c. The interest rate that is determine by individual banks
d. The interest rate that is determine by the Federal Reserve
Answer: C
●● Who provides VA home loans?
a. private lenders
b. FHA
, c. The VA itself
d. All of these
Answer: A
●● The Single Family Housing Direct Home Loan is also known as
a. Program 101
b. Section 502 Direct Loan Program
c. Section 8 Program Housing
d. None of the above
Answer: B
●● A loan with no discount points is known as a
a. birdie loan
b. par loan
c. interim loan
d. air loan
Answer: B
●● In order to qualify for exemption from capital gains the property
must have bee the primary residence for two of the previous
__________ years.
FINAL PAPER PRACTICE QUESTIONS WITH
VERIFIED ANSWERS PACKAGE
●● 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.
●● Servicing
Answer: Sending monthly payment statements and collecting monthly
payments, maintaining payment records and following up on
delinquencies.
●● Origination
Answer: The process of creating a new mortgage loan.
●● Character
Answer: A measure of the willingness of a borrower to make on-time
payments. Credit character is resealed in the borrowers credit report.
,●● Capacity
Answer: A measure of the borrowers ability to repay the debt, and is
demonstrated through current earnings and job stability.
●● Capital
Answer: The sum of all assets that the borrower has accumulated.
●● When was the FHA created?
a. 1929
b. 1934
c. 1912
d. 2008
Answer: B
●● Who funds the FHA?
a. The American tax payers
b. The FED
c. Fannie Mae
d. The FHA funds itself
,Answer: D
●● How long is the lifespan of a $20 bill?
a. more than 15 years
b. less than 10 years
c. less than 5 years
d. more than 10 years
Answer: B
●● What is the prime rate?
a. The interest rate that is determine by the President
b. The interest rate that is determine by Congress
c. The interest rate that is determine by individual banks
d. The interest rate that is determine by the Federal Reserve
Answer: C
●● Who provides VA home loans?
a. private lenders
b. FHA
, c. The VA itself
d. All of these
Answer: A
●● The Single Family Housing Direct Home Loan is also known as
a. Program 101
b. Section 502 Direct Loan Program
c. Section 8 Program Housing
d. None of the above
Answer: B
●● A loan with no discount points is known as a
a. birdie loan
b. par loan
c. interim loan
d. air loan
Answer: B
●● In order to qualify for exemption from capital gains the property
must have bee the primary residence for two of the previous
__________ years.
