Real Estate Finance 1 - Texas, Champions School of Real Estate - Finance Questions with correct Answers

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 decision. 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