1
REAL ESTATE FINANCE CHAMPIONS EXAM
QUESTIONS AND ANSWERS 2025 GRADED A+.
mortgage Broker - (answers)Functions as a middleman between the borrower and
the lender, negotiating, selling or arranging loans to be delivered to large
investors
Mortgage Banker - (answers)Provide their own funds for the purpose of providing
mortgage financing
Correspondent Lender - (answers)Smaller in scale then mortgage bankers or
brokers, these lenders typically extended loans with their own funds at their own
risk
Origination - (answers)The process of creating a new mortgage loan
Underwriting - (answers)Detailed process of evaluating a borrowers loan
application to determine the risk involved for the lender
Closing/Settlement - (answers)Consummation of a contractual real estate
transaction in which all appropriate documents are signed and the proceeds of
the mortgage loan are then distributed by the lender
Funding - (answers)The process of transferring funds into a title or escrow
company for disbursement
, 2
Housing and Economic Recovery Act of 2008 (HERA) - (answers)Designed to assist
with recovery and revitalization of America's residential housing market
SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) - (answers)Sets a
minimum standard for licensing and registering mortgage loan originators.
M1 - (answers)Sum of currency held by the public and transaction deposits at
depository institutions
M2 - (answers)M1 plus savings accounts, certificates of deposit, and other liquid
assets
monetary policy - (answers)Maintenance of a stable money supply that provides
for growth in the economy while keeping inflation in check. Federal reserve is
responsible for monetary policy
fiscal policy - (answers)Federal government spending.
The Federal Reserve - (answers)The central banking system of the United States
Monetary inflation - (answers)Excess of money supply in the market
discount rate - (answers)Interest rate a Reserve Bank charges eligible financial
institutions to borrow funds on a short term basis.
, 3
federal funds rate - (answers)Is the rate that the federal reserve charges banks for
unsecured loans most of which are for a very short term (sometimes overnight)
banks use these to meet their liquidity requirements when withdrawals threaten
to exceed cash on hand
US Treasury - (answers)Primarily responsible for raising funds to finance the
operations of the US government. Management of fiscal policy
Office of the Comptroller of the Currency (OCC) - (answers)charters and regulates
national banks
US Mint - (answers)Make US coins
Department of housing and urban development (HUD 1965) - (answers)Create
strong sustainable inclusive communities and quality affordable homes.
The Federal Housing Administration (FHA) - (answers)Provides mortgage loans
made by FHA approved lenders through the United States and its territories
Community Development Block Grant (CDBG) - (answers)Help communities with
economic development, Job opportunities and housing rehabilitation
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 -
(answers)Promote the financial stability of the United States by improving
REAL ESTATE FINANCE CHAMPIONS EXAM
QUESTIONS AND ANSWERS 2025 GRADED A+.
mortgage Broker - (answers)Functions as a middleman between the borrower and
the lender, negotiating, selling or arranging loans to be delivered to large
investors
Mortgage Banker - (answers)Provide their own funds for the purpose of providing
mortgage financing
Correspondent Lender - (answers)Smaller in scale then mortgage bankers or
brokers, these lenders typically extended loans with their own funds at their own
risk
Origination - (answers)The process of creating a new mortgage loan
Underwriting - (answers)Detailed process of evaluating a borrowers loan
application to determine the risk involved for the lender
Closing/Settlement - (answers)Consummation of a contractual real estate
transaction in which all appropriate documents are signed and the proceeds of
the mortgage loan are then distributed by the lender
Funding - (answers)The process of transferring funds into a title or escrow
company for disbursement
, 2
Housing and Economic Recovery Act of 2008 (HERA) - (answers)Designed to assist
with recovery and revitalization of America's residential housing market
SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) - (answers)Sets a
minimum standard for licensing and registering mortgage loan originators.
M1 - (answers)Sum of currency held by the public and transaction deposits at
depository institutions
M2 - (answers)M1 plus savings accounts, certificates of deposit, and other liquid
assets
monetary policy - (answers)Maintenance of a stable money supply that provides
for growth in the economy while keeping inflation in check. Federal reserve is
responsible for monetary policy
fiscal policy - (answers)Federal government spending.
The Federal Reserve - (answers)The central banking system of the United States
Monetary inflation - (answers)Excess of money supply in the market
discount rate - (answers)Interest rate a Reserve Bank charges eligible financial
institutions to borrow funds on a short term basis.
, 3
federal funds rate - (answers)Is the rate that the federal reserve charges banks for
unsecured loans most of which are for a very short term (sometimes overnight)
banks use these to meet their liquidity requirements when withdrawals threaten
to exceed cash on hand
US Treasury - (answers)Primarily responsible for raising funds to finance the
operations of the US government. Management of fiscal policy
Office of the Comptroller of the Currency (OCC) - (answers)charters and regulates
national banks
US Mint - (answers)Make US coins
Department of housing and urban development (HUD 1965) - (answers)Create
strong sustainable inclusive communities and quality affordable homes.
The Federal Housing Administration (FHA) - (answers)Provides mortgage loans
made by FHA approved lenders through the United States and its territories
Community Development Block Grant (CDBG) - (answers)Help communities with
economic development, Job opportunities and housing rehabilitation
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 -
(answers)Promote the financial stability of the United States by improving
