Champions Real Estate Finance Exam Questions with complete solutions

3 different credit unions - ANSWER-(Experian, Equifax, Transunion). Use FICO scoring system developed by Fair Isaac and Company. Not all creditors report to each union, therefor each person will have 3 different scores. Origination - ANSWER-Process of creating a new mortgage loan How do lenders determine which score to use? - ANSWER-When credit scores are obtained, there will be 3 different scores. If 3 reports are obtained, the lender will use the middle score. If 2 reports are obtained, they will use the lower score. Underwriting - ANSWER-Evaluating a borrower's loan application to determine the risk involved The U.S. Treasury is responsible for raising money to support the spending decisions of Congress. At the treasury level, funds can be raised to pay for government spending by? - ANSWER-Raising taxes and increasing borrowing. Federal Reserve - ANSWER-Central banking system of the United States Discount Rate - ANSWER-Interest rate charged to borrow funds on a short term basis. Federal Funds Rate - ANSWER-Federal Reserve charges banks for unsecured loans, most of which are for a short term. Federal Fair Housing Statutes - ANSWER-Prohibit housing discrimination based on race, color, national origin, sex, religion, families with children, and disabilities. National Mortgage Licensing System and Registry(NMLSR) - ANSWER-All residential mortgage loan originators must now be registered