CHAMPIONS REAL ESTATE FINANCE EXAM REAL
EXAM 2025 | ALL QUESTIONS AND CORRECT
ANSWERS | ALREADY GRADED A+ | LATEST
UPDATE (JUST RELEASED
Package Mortgage - ans -Includes both real and personal property ( fixtures and
furnishings)
Loan-to-Value Ratio (LTV) - ans -The percentage of the lesser of the appraised
value or sales price that the lender will lend.
ex: If a borrower is approved for an 80% loan, it means that the lender will loan
up to 80% of the sales price or appraised value, whichever is lower.
Blanket Mortgage - ans -Covers more than one piece of property.
Wraparound Mortgage - ans -Method of financing which preserves the low,
existing interest rate on the original note.
Open-End Mortgage - ans -Permits additional borrowing on the same note. This is
sometimes called a credit card mortgage or a home equity line of credit - HELOC.
Budget Mortgage - ans -The monthly house payment includes principal, interest,
taxes and insurance (known as PITI)
Collateral -Dependent Loans - ans -A hard money loan is a specific type of asset-
based financing in which a borrower receives funds secured by the value of a
parcel of real
Federal Funds Rate - ans -Is the rate that the Federal reserve charges banks for
unsecured loans, most of which are for a very short term.
Trouble Asset Relief Program (TARP) - ans -Was created to restore the nations
financial stability and restart economic growth.
,United State Mint - ans -Created by Congress in 1972 and became part of the
Department of the Treasury in 1873. The primary mission is to serve the American
people by manufacturing, distributing, and circulating precious metal coins,
collecting coins and national medals. Also entrusted with providing security over
assets.
The Federal Deposit Insurance Corporation (FDIC) - ans -An agency created in
1933 to insure individuals' bank accounts, protecting people against losses due to
bank failures (Insures deposits only)
The Federal Home Loan Bank (FHLB) System - ans -A system of regional banks
from which local lending institutions everywhere in America borrow funds to
finance housing, economic development, infrastructure and jobs.
The Federal Housing Administration (FHA) - ans -Provides mortgage insurance on
loans made by blank- approved lenders throughout the US and its territories.
Insures mortgages on single-family and multifamily homes including
manufactured homes and hospitals. It is the largest insurer of mortgages in the
world, insuring over 34 million properties since its inception in 1934.
FHA mortgage insurance - ans -Provides lenders with protection against losses as
the result of homeowners defaulting on their mortgage loans.
Community Development Block Grants (CDBG) - ans -To help communities with
economic development, job opportunities and housing rehabilitation
HOME Investment Partnership Program - ans -Block grants to develop and
support affordable housing for low-income residents.
Rental assistance - ans -In the form of section 8 certificates or vouchers for low-
income households.
Ginnie Mae (GNMA) - ans -Was established in the U.S in 1968 to promote
homeownership. It is wholly-owned government association that operates a
mortgage-backed securities program designed to facilitate the flow of capital into
housing industry. Does not issue, sell or buy pass-through mortgage-backed
securities or purchases mortgages loans. It simply guarantees (insures).
, Federal Fair Housing Act of 1968 - ans -An act prohibiting discrimination in the
sale or rental of housing on the basis of race, color, religion or national origin sex,
handicap and familial status.
Department of Housing and Urban Development (HUD) - ans -A federal cabinet
department is active in national housing programs. Its mission is to create strong,
sustainable, inclusive communities and quality affordable homes. It prevents
housing discrimination through public education and enforcement are
administered by the Assistant Secretary for Fair Housing and Equal Opportunity
(FHEO)
NMLSR - ans -All residential mortgage loan originators must now be registered
with the Nationwide Mortgage Licensing System and Registry.
Consumer Financial Protection Bureau (CFPB) - ans -Established by the Dodd-
Frank Act. The Bureau has the authority to examine and enforce consumer
protection regulations for all mortgage-related businesses, large non-bank
financial companies, and banks and credit unions with assets greater than $10
billion.
Redlining - ans -A practice in which banks refuse to make loans to people living in
certain geographic locations.
Equal Credit Opportunity Act (ECOA) - ans -The federal law that prohibits
discrimination in the extension of credit because of race, color, religion, national
origin, sex, age, or marital status. Ensures that all consumers are given an equal
chance to obtain credit.
Truth in Lending Act (TILA) - ans -A United States federal law that is designed to
protect consumers in any credit transactions by requiring clear disclosure of key
terms of lending arrangments all associated cost.
Trigger Terms - ans -Specific credit terms that may not be advertised unless the
advertisement includes other detailed information.
EXAM 2025 | ALL QUESTIONS AND CORRECT
ANSWERS | ALREADY GRADED A+ | LATEST
UPDATE (JUST RELEASED
Package Mortgage - ans -Includes both real and personal property ( fixtures and
furnishings)
Loan-to-Value Ratio (LTV) - ans -The percentage of the lesser of the appraised
value or sales price that the lender will lend.
ex: If a borrower is approved for an 80% loan, it means that the lender will loan
up to 80% of the sales price or appraised value, whichever is lower.
Blanket Mortgage - ans -Covers more than one piece of property.
Wraparound Mortgage - ans -Method of financing which preserves the low,
existing interest rate on the original note.
Open-End Mortgage - ans -Permits additional borrowing on the same note. This is
sometimes called a credit card mortgage or a home equity line of credit - HELOC.
Budget Mortgage - ans -The monthly house payment includes principal, interest,
taxes and insurance (known as PITI)
Collateral -Dependent Loans - ans -A hard money loan is a specific type of asset-
based financing in which a borrower receives funds secured by the value of a
parcel of real
Federal Funds Rate - ans -Is the rate that the Federal reserve charges banks for
unsecured loans, most of which are for a very short term.
Trouble Asset Relief Program (TARP) - ans -Was created to restore the nations
financial stability and restart economic growth.
,United State Mint - ans -Created by Congress in 1972 and became part of the
Department of the Treasury in 1873. The primary mission is to serve the American
people by manufacturing, distributing, and circulating precious metal coins,
collecting coins and national medals. Also entrusted with providing security over
assets.
The Federal Deposit Insurance Corporation (FDIC) - ans -An agency created in
1933 to insure individuals' bank accounts, protecting people against losses due to
bank failures (Insures deposits only)
The Federal Home Loan Bank (FHLB) System - ans -A system of regional banks
from which local lending institutions everywhere in America borrow funds to
finance housing, economic development, infrastructure and jobs.
The Federal Housing Administration (FHA) - ans -Provides mortgage insurance on
loans made by blank- approved lenders throughout the US and its territories.
Insures mortgages on single-family and multifamily homes including
manufactured homes and hospitals. It is the largest insurer of mortgages in the
world, insuring over 34 million properties since its inception in 1934.
FHA mortgage insurance - ans -Provides lenders with protection against losses as
the result of homeowners defaulting on their mortgage loans.
Community Development Block Grants (CDBG) - ans -To help communities with
economic development, job opportunities and housing rehabilitation
HOME Investment Partnership Program - ans -Block grants to develop and
support affordable housing for low-income residents.
Rental assistance - ans -In the form of section 8 certificates or vouchers for low-
income households.
Ginnie Mae (GNMA) - ans -Was established in the U.S in 1968 to promote
homeownership. It is wholly-owned government association that operates a
mortgage-backed securities program designed to facilitate the flow of capital into
housing industry. Does not issue, sell or buy pass-through mortgage-backed
securities or purchases mortgages loans. It simply guarantees (insures).
, Federal Fair Housing Act of 1968 - ans -An act prohibiting discrimination in the
sale or rental of housing on the basis of race, color, religion or national origin sex,
handicap and familial status.
Department of Housing and Urban Development (HUD) - ans -A federal cabinet
department is active in national housing programs. Its mission is to create strong,
sustainable, inclusive communities and quality affordable homes. It prevents
housing discrimination through public education and enforcement are
administered by the Assistant Secretary for Fair Housing and Equal Opportunity
(FHEO)
NMLSR - ans -All residential mortgage loan originators must now be registered
with the Nationwide Mortgage Licensing System and Registry.
Consumer Financial Protection Bureau (CFPB) - ans -Established by the Dodd-
Frank Act. The Bureau has the authority to examine and enforce consumer
protection regulations for all mortgage-related businesses, large non-bank
financial companies, and banks and credit unions with assets greater than $10
billion.
Redlining - ans -A practice in which banks refuse to make loans to people living in
certain geographic locations.
Equal Credit Opportunity Act (ECOA) - ans -The federal law that prohibits
discrimination in the extension of credit because of race, color, religion, national
origin, sex, age, or marital status. Ensures that all consumers are given an equal
chance to obtain credit.
Truth in Lending Act (TILA) - ans -A United States federal law that is designed to
protect consumers in any credit transactions by requiring clear disclosure of key
terms of lending arrangments all associated cost.
Trigger Terms - ans -Specific credit terms that may not be advertised unless the
advertisement includes other detailed information.
