RMLO CHAMPIONS SCHOOL OF REAL ESTATE
ACTUAL EXAM 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ The Federal agency established to restore Fannie Mae and Freddie
Mac to a sound and solvent financial condition is _____. Answer:
Federal Housing Finance Agency (FHFA)
◉ The ____ guarantee allows mortgage lenders to obtain a better
price for their loan in the capital markets. Answer: Gov't. National
Mortgage Association - Ginnie Mae
◉ The federally chartered corporation was established in 1970 for
the purpose of purchasing mortgages in the secondary market is
known as ______. Answer: Federal Home Loan Mortgage Corporation -
Freddie Mac
◉ The line of credit used by a mortgage lender to close and fund a
loan before selling it in the secondary market is called a ____.
Answer: warehouse line
◉ Today the _____ specializes as the intermediary between the
borrower and the lender. Answer: mortgage broker
,◉ A _____ is a mortgage that is NOT guaranteed or insured by any
government agency. Answer: conventional loan
◉ A ____ seeks to originate numerous loan transactions and then sell
these mortgages to large investors. Answer: mortgage banker
◉ The Good Faith Estimate disclosure form is used primarily for
_____ transactions. Answer: reverse mortgage
◉ The disclosures related to the transfer of ______ are required for
first mortgage liens of federally related mortgage loans, including all
financing transactions of such loans. Answer: mortgage servicing
◉ _____ sets limits on the amounts that a lender may require a
borrower to put into an escrow account for purposes of paying
taxes, hazard insurance and other charges related to the property.
Answer: RESPA Section 10
◉ Payments in excess of the reasonable value of goods provided or
services rendered are considered _____. Answer: kickbacks
◉ If a lender has either an affiliate relationship or a direct
ownership interest of more than one percent in a provider of
settlement services and they directly refer business to the provider,
it is per Reg X a _____. Answer: affiliated business arrangement (ABA)
, ◉ Reg X requires the ______ must be provided at settlement, or within
45 calendar days of settlement. Answer: initial escrow settlement
statement
◉ The ____ is the cost of a borrower's credit calculated as an annual
rate Answer: APR
◉ Reg Z requires an HPML creditor to obtain a second written ____
based on an interior inspection of the property, at no cost to the
borrower, in connection with certain flipped properties. Answer:
appraisal
◉ Rescission business days are defined by Reg Z to include all
calendar days EXCEPT _____. Answer: Sundays and federal holidays
◉ Reg Z provides a presumption of compliance with the ability-to-
repay requirement for creditors making ______. Answer: Qualified
Mortgages
◉ TILA requires mortgage loan originators to make certain material
disclosures on loans subject to the RESPA within _____ after receipt of
a written application. Answer: 3 business days
◉ Section 32 loans are also known as ______ loans. Answer: high-cost
ACTUAL EXAM 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ The Federal agency established to restore Fannie Mae and Freddie
Mac to a sound and solvent financial condition is _____. Answer:
Federal Housing Finance Agency (FHFA)
◉ The ____ guarantee allows mortgage lenders to obtain a better
price for their loan in the capital markets. Answer: Gov't. National
Mortgage Association - Ginnie Mae
◉ The federally chartered corporation was established in 1970 for
the purpose of purchasing mortgages in the secondary market is
known as ______. Answer: Federal Home Loan Mortgage Corporation -
Freddie Mac
◉ The line of credit used by a mortgage lender to close and fund a
loan before selling it in the secondary market is called a ____.
Answer: warehouse line
◉ Today the _____ specializes as the intermediary between the
borrower and the lender. Answer: mortgage broker
,◉ A _____ is a mortgage that is NOT guaranteed or insured by any
government agency. Answer: conventional loan
◉ A ____ seeks to originate numerous loan transactions and then sell
these mortgages to large investors. Answer: mortgage banker
◉ The Good Faith Estimate disclosure form is used primarily for
_____ transactions. Answer: reverse mortgage
◉ The disclosures related to the transfer of ______ are required for
first mortgage liens of federally related mortgage loans, including all
financing transactions of such loans. Answer: mortgage servicing
◉ _____ sets limits on the amounts that a lender may require a
borrower to put into an escrow account for purposes of paying
taxes, hazard insurance and other charges related to the property.
Answer: RESPA Section 10
◉ Payments in excess of the reasonable value of goods provided or
services rendered are considered _____. Answer: kickbacks
◉ If a lender has either an affiliate relationship or a direct
ownership interest of more than one percent in a provider of
settlement services and they directly refer business to the provider,
it is per Reg X a _____. Answer: affiliated business arrangement (ABA)
, ◉ Reg X requires the ______ must be provided at settlement, or within
45 calendar days of settlement. Answer: initial escrow settlement
statement
◉ The ____ is the cost of a borrower's credit calculated as an annual
rate Answer: APR
◉ Reg Z requires an HPML creditor to obtain a second written ____
based on an interior inspection of the property, at no cost to the
borrower, in connection with certain flipped properties. Answer:
appraisal
◉ Rescission business days are defined by Reg Z to include all
calendar days EXCEPT _____. Answer: Sundays and federal holidays
◉ Reg Z provides a presumption of compliance with the ability-to-
repay requirement for creditors making ______. Answer: Qualified
Mortgages
◉ TILA requires mortgage loan originators to make certain material
disclosures on loans subject to the RESPA within _____ after receipt of
a written application. Answer: 3 business days
◉ Section 32 loans are also known as ______ loans. Answer: high-cost
