Real Estate Finance champion school Exam 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 Residential mortgages are divided into two broad categories - ANSWER-Conventional loans and governmental loans Governmental loans include - ANSWER-FHA, VA, USDA Loans that are not sold in the secondary market are called - ANSWER-Portfolio loans because the lender holds the loan and his or her investment portfolio Conventional conforming loans - ANSWER-Conventional loans that meet the standards of Fannie Mae and Freddie Mac Four C's of good lending - ANSWER-Character capacity capital and collateral