CHAMPIONS REAL ESTATE FINANCE
EXAM 2026 ACTUAL EXAM PAPER
QUESTIONS WITH ANSWERS GRADED A+
◉Package Mortgage ANSWER: - Includes both real and personal
property (fixtures and furnishings)
◉Blanket Mortgage ANSWER: - Covers more than one piece of
property.
◉Wraparound Mortgage ANSWER: - Method of financing which
preserves the low, existing interest rate on the original note.
◉Open-End Mortgage ANSWER: - 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 ANSWER: - The monthly house payment includes
principal, interest, taxes and insurance (known as PITI)
◉Collateral -Dependent Loans ANSWER: - 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 estate.
,◉Character ANSWER: - Is a measure of the willingness of a borrower
to make on-time payments. Credit character is revealed in the borrower's
credit report.
◉Capacity ANSWER: - Is a measure of the borrower's ability to repay
the debt, and is demonstrated through current earnings and job stability.
◉Capital ANSWER: - Is the sum of all assets that the borrower has
accumulated.
◉Collateral ANSWER: - Is something of value that can be pledged as
security for repayment.
◉Yield ANSWER: - Is the return that the investor receives over the life
of the loan. (Also known as profit)
◉Originator ANSWER: - The process of creating a new mortgage loan,
including all steps taken by a lender to attract and qualify a borrower.
◉Mortgage Broker ANSWER: - Typically functions as a middleman
between the borrower and the lender, negotiating, selling or arranging
loans to be delivered to larger investors. At one time originated up to
80% of all mortgage loans. (Back on the rise)
, ◉Mortgage Banker ANSWER: - Entities which provide their own funds
for the purpose of providing mortgage financing, as opposed to
commercial banks/savings associations. (Held, or "Warehoused")
◉Correspondent Lender ANSWER: - Usually smaller in scale than
mortgage bankers or brokers, these lenders typically extend loans with
their own funds, at their own risk.
◉Processing ANSWER: - Once application is complete the file moves
into this phase.
◉Underwriting ANSWER: - The detailed process of evaluating a
borrower's loan application to determine the risk involved for the lender.
◉Closing ANSWER: - The consummation of a real estate transaction in
which all appropriate documents are signed and the proceeds of the
mortgage loan are then disbursed by the lender.
◉Servicing ANSWER: - Includes collecting monthly payments,
maintaining records of payments and balances, collecting and paying
taxes and insurance (and managing escrow and impound funds)
remitting funds to the note holder, and following up on delinquencies.
◉Supply and Demand ANSWER: - an economic concept that states that
the price of a good rises and falls depending on how many people want
it and depending on how much of the good is available.
EXAM 2026 ACTUAL EXAM PAPER
QUESTIONS WITH ANSWERS GRADED A+
◉Package Mortgage ANSWER: - Includes both real and personal
property (fixtures and furnishings)
◉Blanket Mortgage ANSWER: - Covers more than one piece of
property.
◉Wraparound Mortgage ANSWER: - Method of financing which
preserves the low, existing interest rate on the original note.
◉Open-End Mortgage ANSWER: - 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 ANSWER: - The monthly house payment includes
principal, interest, taxes and insurance (known as PITI)
◉Collateral -Dependent Loans ANSWER: - 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 estate.
,◉Character ANSWER: - Is a measure of the willingness of a borrower
to make on-time payments. Credit character is revealed in the borrower's
credit report.
◉Capacity ANSWER: - Is a measure of the borrower's ability to repay
the debt, and is demonstrated through current earnings and job stability.
◉Capital ANSWER: - Is the sum of all assets that the borrower has
accumulated.
◉Collateral ANSWER: - Is something of value that can be pledged as
security for repayment.
◉Yield ANSWER: - Is the return that the investor receives over the life
of the loan. (Also known as profit)
◉Originator ANSWER: - The process of creating a new mortgage loan,
including all steps taken by a lender to attract and qualify a borrower.
◉Mortgage Broker ANSWER: - Typically functions as a middleman
between the borrower and the lender, negotiating, selling or arranging
loans to be delivered to larger investors. At one time originated up to
80% of all mortgage loans. (Back on the rise)
, ◉Mortgage Banker ANSWER: - Entities which provide their own funds
for the purpose of providing mortgage financing, as opposed to
commercial banks/savings associations. (Held, or "Warehoused")
◉Correspondent Lender ANSWER: - Usually smaller in scale than
mortgage bankers or brokers, these lenders typically extend loans with
their own funds, at their own risk.
◉Processing ANSWER: - Once application is complete the file moves
into this phase.
◉Underwriting ANSWER: - The detailed process of evaluating a
borrower's loan application to determine the risk involved for the lender.
◉Closing ANSWER: - The consummation of a real estate transaction in
which all appropriate documents are signed and the proceeds of the
mortgage loan are then disbursed by the lender.
◉Servicing ANSWER: - Includes collecting monthly payments,
maintaining records of payments and balances, collecting and paying
taxes and insurance (and managing escrow and impound funds)
remitting funds to the note holder, and following up on delinquencies.
◉Supply and Demand ANSWER: - an economic concept that states that
the price of a good rises and falls depending on how many people want
it and depending on how much of the good is available.
