Champions School of Real Estate
Finance Exam 2025 || Complete
Questions & Answers (Graded A+)
The creditor must ensure that the consumer receives the Closing Disclosure form at
lease ________ days before the consumer closes the loan - ANSWER - 3 Business
days
Freddie MAC is a federally chartered corporation for the purpose of... - ANSWER -
Purchasing mortgages in the secondary market.
Created in the 1970 to purchase mortgages in the secondary market - ANSWER -
Freddie MAC
The market where borrowers and mortgage lender come together to create and
negotiate terms of a mortgage transaction is called... - ANSWER - The Primary Market
Addresses imbalance of mortgage credit among regions of the unite state by making
funds available. (focus attention to help pump more money into the economy) -
ANSWER - Fannie Mae
It standardized mortgage loans - ANSWER - Fannie Mae
Allows lenders to originate mortgage for sale rather than for portfolio investment. (lower
rates better fees) - ANSWER - Fannie Mae
Primary Market lender include... - ANSWER - Saving and loans, commercial banks,
mutual saving banks, mortgage company's, credit union, individual, or any person or
business that provide cash for someone seeking a mortgage
While the majority of loans are sold in the secondary market, many of them are
retained. What is this called? - ANSWER - Portfolio loans
Most mortgage brokers specialize as the "_____" between the borrower and the lender -
ANSWER - Middleman
One advantage of municipal bonds is that... - ANSWER - Interest paid to investor is not
subject to federal income tax, making them appealing to investor who needs to shelter
some income from taxation
A claim, lien, charge, or liability attached to and binding real property - ANSWER -
Encumbrance
, A right given by law to certain creditors to have debts paid out of the properly of a
defaulting debtor, usually through a court sale - ANSWER - Lien
A borrower is known as a - ANSWER - Mortgagor
A lender is known as a - ANSWER - Mortgagee
A ______ is a pledge of real estate as security for repayment of a debt - ANSWER -
Mortgage
A _____ is the borrowers unconditional promise to repay and includes the amount
borrowed, payment amount, due date, and rate of interest - ANSWER - Promissory note
Any excess money left over from the forced sale is given to the ______ - ANSWER -
Debtor (borrower)
A contract for deed becomes fully executed when.... - ANSWER - The final loan
payment is made
A second mortgage is an instrument ______ to the primary mortgage - ANSWER -
Subordinate
A clause that gives the borrower the ability to replace the primary instrument with
another without affecting the subordinate instrument's position - ANSWER - Lifting
clause
A clause in which the holder of the mortgage permits a subsequent mortgage to take
priority is known as a - ANSWER - Subordinate clause
The term "_______" typically includes monthly payment of 1/12th of the annual taxes,
homeowner's insurance and mortgage insurance - ANSWER - House payment
1 point = ________ of the loan amount - ANSWER - 1%
Monthly payment includes an amount that is applied first to the interest that is due wit
the remainder of the loan payment being applied to the outstanding loan balance -
ANSWER - Amortizing loan
The _____ and ______ move up and down with the fluctuations in financial market -
ANSWER - 1) index
2) resulting rate
Discounted Initial Rate (teaser rate) - ANSWER - A lower interest rate is offered by the
lender during the first year or more of the loan
Finance Exam 2025 || Complete
Questions & Answers (Graded A+)
The creditor must ensure that the consumer receives the Closing Disclosure form at
lease ________ days before the consumer closes the loan - ANSWER - 3 Business
days
Freddie MAC is a federally chartered corporation for the purpose of... - ANSWER -
Purchasing mortgages in the secondary market.
Created in the 1970 to purchase mortgages in the secondary market - ANSWER -
Freddie MAC
The market where borrowers and mortgage lender come together to create and
negotiate terms of a mortgage transaction is called... - ANSWER - The Primary Market
Addresses imbalance of mortgage credit among regions of the unite state by making
funds available. (focus attention to help pump more money into the economy) -
ANSWER - Fannie Mae
It standardized mortgage loans - ANSWER - Fannie Mae
Allows lenders to originate mortgage for sale rather than for portfolio investment. (lower
rates better fees) - ANSWER - Fannie Mae
Primary Market lender include... - ANSWER - Saving and loans, commercial banks,
mutual saving banks, mortgage company's, credit union, individual, or any person or
business that provide cash for someone seeking a mortgage
While the majority of loans are sold in the secondary market, many of them are
retained. What is this called? - ANSWER - Portfolio loans
Most mortgage brokers specialize as the "_____" between the borrower and the lender -
ANSWER - Middleman
One advantage of municipal bonds is that... - ANSWER - Interest paid to investor is not
subject to federal income tax, making them appealing to investor who needs to shelter
some income from taxation
A claim, lien, charge, or liability attached to and binding real property - ANSWER -
Encumbrance
, A right given by law to certain creditors to have debts paid out of the properly of a
defaulting debtor, usually through a court sale - ANSWER - Lien
A borrower is known as a - ANSWER - Mortgagor
A lender is known as a - ANSWER - Mortgagee
A ______ is a pledge of real estate as security for repayment of a debt - ANSWER -
Mortgage
A _____ is the borrowers unconditional promise to repay and includes the amount
borrowed, payment amount, due date, and rate of interest - ANSWER - Promissory note
Any excess money left over from the forced sale is given to the ______ - ANSWER -
Debtor (borrower)
A contract for deed becomes fully executed when.... - ANSWER - The final loan
payment is made
A second mortgage is an instrument ______ to the primary mortgage - ANSWER -
Subordinate
A clause that gives the borrower the ability to replace the primary instrument with
another without affecting the subordinate instrument's position - ANSWER - Lifting
clause
A clause in which the holder of the mortgage permits a subsequent mortgage to take
priority is known as a - ANSWER - Subordinate clause
The term "_______" typically includes monthly payment of 1/12th of the annual taxes,
homeowner's insurance and mortgage insurance - ANSWER - House payment
1 point = ________ of the loan amount - ANSWER - 1%
Monthly payment includes an amount that is applied first to the interest that is due wit
the remainder of the loan payment being applied to the outstanding loan balance -
ANSWER - Amortizing loan
The _____ and ______ move up and down with the fluctuations in financial market -
ANSWER - 1) index
2) resulting rate
Discounted Initial Rate (teaser rate) - ANSWER - A lower interest rate is offered by the
lender during the first year or more of the loan
