Champions Real Estate Finance questions and answers well illustrated.

Champions Real Estate Finance questions and answers well illustrated. Loan-to-Value uRatio u(LTV) u- u ucorrect uanswer. u u uThe upercentage uof uthe ulesser uof uthe uappraised uvalue uor usales uprice uthat uthe ulender uwill ulend. ex: uIf ua uborrower uis uapproved ufor uan u80% uloan, uit umeans uthat uthe ulender uwill uloan uup uto u80% uof uthe usales uprice uor uappraised uvalue, uwhichever uis ulower. Package uMortgage u- u ucorrect uanswer. u u uIncludes uboth ureal uand upersonal uproperty u( ufixtures uand ufurnishings) Blanket uMortgage u- u ucorrect uanswer. u u uCovers umore uthan uone upiece uof uproperty. Wraparound uMortgage u- u ucorrect uanswer. u u uMethod uof ufinancing uwhich upreserves uthe ulow, uexisting uinterest urate uon uthe uoriginal unote. Open-End uMortgage u- u ucorrect uanswer. u u uPermits uadditional uborrowing uon uthe usame unote. uThis uis usometimes ucalled ua ucredit ucard umortgage uor ua uhome uequity uline uof ucredit u- uHELOC. Budget uMortgage u- u ucorrect uanswer. u u uThe umonthly uhouse upayment uincludes uprincipal, uinterest, utaxes uand uinsurance u(known uas uPITI) Collateral u-Dependent uLoans u- u ucorrect uanswer. u u uA uhard umoney uloan uis ua uspecific utype uof uasset-based ufinancing uin uwhich ua uborrower ureceives ufunds usecured uby uthe uvalue uof ua uparcel uof ureal uestate. Character u- u ucorrect uanswer. u u uIs ua umeasure uof uthe uwillingness uof ua uborrower uto umake uon-time upayments. uCredit ucharacter uis urevealed uin uthe uborrower's ucredit ureport. Capacity u- u ucorrect uanswer. u u uIs ua umeasure uof uthe uborrower's uability uto urepay uthe udebt, uand uis udemonstrated uthrough ucurrent uearnings uand ujob ustability. Capital u- u ucorrect uanswer. u u uIs uthe usum uof uall uassets uthat uthe uborrower uhas uaccumulated. Collateral u- u ucorrect uanswer. u u uIs usomething uof uvalue uthat ucan ube upledged uas usecurity ufor urepayment. Yield u- u ucorrect uanswer. u u uIs uthe ureturn uthat uthe uinvestor urecieves uover uthe ulife uof uthe uloan. u(Also uknown uas uprofit) Originator u- u ucorrect uanswer. u u uThe uprocess uof ucreating ua unew umortgage uloan, uincluding uall usteps utaken uby ua ulender uto uattract uand uqualify ua uborrower. Mortgage uBroker u- u ucorrect uanswer. u u uTypically ufunctions uas ua umiddleman ubetween uthe uborrower uand uthe ulender, unegotiating, uselling uor uarranging uloans uto ube udelivered uto ularger uinvestors. uAt uone utime uoriginated uup uto u80% uof uall umortgage uloans. u(Back uon uthe urise) Mortgage uBanker u- u ucorrect uanswer. u u uEntities uwhich uprovide utheir uown ufunds ufor uthe upurpose uof uproviding umortgage ufinancing, uas uopposed uto ucommercial ubanks/savings uassociations. u(Held, uor u"Warehoused") Correspondent uLender u- u ucorrect uanswer. u u uUsually usmaller uin uscale uthan umortgage ubankers uor ubrokers, uthese ulenders utypically uextend uloans uwith utheir uown ufunds, uat utheir uown urisk. Processing u- u ucorrect uanswer. u u uOnce uapplication uis ucomplete uthe ufile umoves uinto uthis uphase. Underwriting u- u ucorrect uanswer. u u uThe udetailed uprocess uof uevaluating ua uborrower's uloan uapplication uto udetermine uthe urisk uinvolved ufor uthe ulender. Closing u- u ucorrect uanswer. u u uThe uconsummation uof ua ureal uestate utransaction uin uwhich uall uappropriate udocuments uare usigned uand uthe uproceeds uof uthe umortgage uloan uare uthen udisbursed uby uthe ulender. Servicing u- u ucorrect uanswer. u u uIncludes ucollecting umonthly upayments, umaintaining urecords uof upayments uand ubalances, ucollecting uand upaying utaxes uand uinsurance u( uand umanaging uescrow uand uimpound ufunds) uremitting ufunds uto uthe unote uholder, uand ufollowing uup uon udelinquencies. Supply uand uDemand u- u ucorrect uanswer. u u uan ueconomic uconcept uthat ustates uthat uthe uprice uof ua ugood urises uand ufalls udepending uon uhow umany upeople uwant uit uand udepending uon uhow umuch uof uthe ugood uis uavailable. Funding u- u ucorrect uanswer. u u uThe uprocess uof utransferring ufunds uto ua utitle uor uescrow ucompany ufor udisbursement The uSafe uAct u- u ucorrect uanswer. u u uDesigned uto uenhance uconsumer uprotection uand ureduce ufraud. u(Key ucomponent uof uHERA) M1 u- u ucorrect uanswer. u u uIs udefined uas uthe usum uof ucurrency uheld uby uthe upublic uand utransaction udeposits uat udepository uinstitutions. M2 u- u ucorrect uanswer. u u uIs udefined uas uM1 uplus usaving udeposits, usmall-denomination utime udeposits u(those uissued uin uamounts uof uless uthan u$100,000) uand uretail umoney umarket umutual ufunds ushares. Fiat uMoney u- u ucorrect uanswer. u u uIs ucurrency uthat uis unot ubacked uby uany uprecious umetals uat uall. Monetary uPolicy u- u ucorrect uanswer. u u uIs uthe umaintenance uof ua ustable umoney usupply uthat uprovides ufor ugrowth uin uthe ueconomy uwhile ukeeping uinflation uin. uThe ufederal ureserves uis uresponsible ufor uthis upolicy uin uthe uUnited uStates. Fiscal uPolicy u- u ucorrect uanswer. u u uFederal uGovernment uspending. uApproved uby uCongress. uAt uthe utreasury ulevel, ufunds ucan ube uraised uto upay ufor ugovernment uspending uby uraising utaxes uand uincreasing uborrowing. Federal uReserve u(The uFed) u- u ucorrect uanswer. u u uis uthe ucentral ubank uof uthe uUnited uStates Monetary uinflation u- u ucorrect uanswer. u u uWhen uthere uis uan uexcess uof umoney usupply uin uthe umarket. Demand-pull uinflation u- u ucorrect uanswer. u u uWhen uthere uis umore umoney uin uthe umarket uand uless ugoods ufor usale. Cost-push uinflation u- u ucorrect uanswer. u u uOccurs uwhen uthe ucost uof uproduction uand uoffering uservices uincrease, uthereby ucausing umanufacturers uand utradespeople/vendors uto urais utheir uprices uaccordingly. Discount urate u- u ucorrect uanswer. u u uThe uinterest urate ucharged umember ubanks uthat uborrow ufrom uthe uFederal uReserve uSystems Federal uFunds uRate u- u ucorrect uanswer. u u uIs uthe urate uthat uthe uFederal ureserve ucharges ubanks ufor uunsecured uloans, umost uof uwhich uare ufor ua uvery ushort uterm. Trouble uAsset uRelief uProgram u(TARP) u- u ucorrect uanswer. u u uWas ucreated uto urestore uthe unations ufinancial ustability uand urestart ueconomic ugrowth. United uState uMint u- u ucorrect uanswer. u u uCreated uby uCongress uin u1972 uand ubecame upart uof uthe uDepartment uof uthe uTreasury uin u1873. uThe uprimary umission uis uto userve uthe uAmerican upeople uby umanufacturing, udistributing, uand ucirculating uprecious umetal ucoins, ucollecting ucoins uand unational umedals. uAlso uentrusted uwith uproviding usecurity uover uassets. The uFederal uDeposit uInsurance uCorporation u(FDIC) u- u ucorrect uanswer. u u uAn uagency ucreated uin u1933 uto uinsure uindividuals' ubank uaccounts, uprotecting upeople uagainst ulosses udue uto ubank ufailures u(Insures udeposits uonly) The uFederal uHome uLoan uBank u(FHLB) uSystem u- u ucorrect uanswer. u u uA usystem uof uregional ubanks ufrom uwhich ulocal ulending uinstitutions ueverywhere uin uAmerica uborrow ufunds uto ufinance uhousing, ueconomic udevelopment, uinfrastructure uand ujobs. The uFederal uHousing uAdministration u(FHA) u- u ucorrect uanswer. u u uProvides umortgage uinsurance uon uloans umade uby ublank- uapproved ulenders uthroughout uthe uUS uand uits uterritories. uInsures umortgages uon usingle-family uand umultifamily uhomes uincluding umanufactured uhomes uand uhospitals. uIt uis uthe ulargest uinsurer uof umortgages uin uthe uworld, uinsuring uover u34 umillion uproperties usince uits uinception uin u1934. FHA umortgage uinsurance u- u ucorrect uanswer. u u uProvides ulenders uwith uprotection uagainst ulosses uas uthe uresult uof uhomeowners udefaulting uon utheir umortgage uloans. Community uDevelopment uBlock uGrants u(CDBG) u- u ucorrect uanswer. u u uTo uhelp ucommunities uwith ueconomic udevelopment, ujob uopportunities uand uhousing urehabilitation HOME uInvestment uPartnership uProgram u- u ucorrect uanswer. u u uBlock ugrants uto udevelop uand usupport uaffordable uhousing ufor ulow-income uresidents. Rental uassistance u- u ucorrect uanswer. u u uIn uthe uform uof usection u8 ucertificates uor uvouchers ufor ulow-income uhouseholds. Ginnie uMae u(GNMA) u- u ucorrect uanswer. u u uWas uestablished uin uthe uU.S uin u1968 uto upromote uhomeownership. uIt uis uwholly-owned ugovernment uassociation uthat uoperates ua umortgage-backed usecurities uprogram udesigned uto ufacilitate uthe uflow uof ucapital uinto uhousing uindustry. uDoes unot uissue, usell uor ubuy upass-through umortgage-backed usecurities uor upurchases umortgages uloans. uIt usimply uguarantees u(insures). Federal uFair uHousing uAct uof u1968 u- u ucorrect uanswer. u u uAn uact uprohibiting udiscrimination uin uthe usale uor urental uof uhousing uon uthe ubasis uof urace, ucolor, ureligion uor unational uorigin usex, uhandicap uand ufamilial ustatus. Department uof uHousing uand uUrban uDevelopment u(HUD) u- u ucorrect uanswer. u u uA ufederal ucabinet udepartment uis uactive uin unational uhousing uprograms. uIts umission uis uto ucreate ustrong, usustainable, uinclusive ucommunities uand uquality uaffordable uhomes. uIt uprevents uhousing udiscrimination uthrough upublic ueducation uand uenforcement uare uadministered uby uthe uAssistant uSecretary ufor uFair uHousing uand uEqual uOpportunity u(FHEO) NMLSR u- u ucorrect uanswer. u u uAll uresidential umortgage uloan uoriginators umust unow ube uregistered uwith uthe uNationwide uMortgage uLicensing uSystem uand uRegistry. Consumer uFinancial uProtection uBureau u(CFPB) u- u ucorrect uanswer. u u uEstablished uby uthe uDodd-Frank uAct. uThe uBureau uhas uthe uauthority uto uexamine uand uenforce uconsumer uprotection uregulations ufor uall umortgage-related ubusinesses, ularge unon-bank ufinancial ucompanies, uand ubanks uand ucredit uunions uwith uassets ugreater uthan u$10 ubillion. Redlining u- u ucorrect uanswer. u u uA upractice uin uwhich ubanks urefuse uto umake uloans uto upeople uliving uin ucertain ugeographic ulocations. Equal uCredit uOpportunity uAct u(ECOA) u- u ucorrect uanswer. u u uThe ufederal ulaw uthat uprohibits udiscrimination uin uthe uextension uof ucredit ubecause uof urace, ucolor, ureligion, unational uorigin, usex, uage, uor umarital ustatus. uEnsures uthat uall uconsumers uare ugiven uan uequal uchance uto uobtain ucredit. Truth uin uLending uAct u(TILA) u- u ucorrect uanswer. u u uA uUnited uStates ufederal ulaw uthat uis udesigned uto uprotect uconsumers uin uany ucredit utransactions uby urequiring uclear udisclosure uof ukey uterms uof ulending uarrangments uall uassociated ucost. Trigger uTerms u- u ucorrect uanswer. u u uSpecific ucredit uterms uthat umay unot ube uadvertised uunless uthe uadvertisement uincludes uother udetailed uinformation. The uFederal uFair uCredit uReporting uAct u(FCRA) u- u ucorrect uanswer. u u uSometimes ucalled uthe uFair uCredit uReporting uDispute uAct, uis ua ufederal ulaw udesigned uto uprotect uconsumers uagainst uunfair ucredit ureporting upractices uand uprotect uand ucredit uprivacy. uTo uassure uthe uconsumer uthat uthese uagencies uare ufair, uaccurate uand uexhibit uconfidentiality uin utheir ucredit ureporting umethods. U.S. uDepartment uof uAgriculture u(USDA) u- u ucorrect uanswer. u u uAlso ureferred uto ua u"Section u502 uloan" uis uinsured uby uthe uU.S. uDepartment uof uAgriculture. uThe uprogram uoffers u100% ufinancing u(no udown upayment) ufor uqualified uborrowers. uFirst utime uand urepeat uhome ubuyers ucan uobtain uthis uloan. uThe uprogram uis ufor uprimary uresidence uonly; uno usecond uhomes uor uinvestor ufinancing uis uavailable uunder uthis uprogram. uThe uprogram uis ufor upurchases uand urefinancing uonly uand ucash-out urefinances uare uNot uallowed.