Champions Real Estate Finance EXAM 2024 Questions And Answers 100% Correct!

Loan Processing - ANSWERSThe process of collecting information about a borrower in order to build a loan file that will be used to make an underwriting decision Underwriting - ANSWERSThe process of evaluating a borrower's loan application to determine the risk involved for the lender Funding - ANSWERSThe process of transferring funds to a title or escrow company for disbursement Servicing - ANSWERSSending monthly payment statements and collecting monthly payments, maintaining payment records and following up on delinquencies Benefits of home ownership: - ANSWERSOccupancy, Tax Benefits, Pride of Ownership, Security, Investment Character - ANSWERSthe willingness of a borrower to make on-time payments Capacity - ANSWERSthe measure of the borrowers ability to repay the debt Capital - ANSWERSthe sum of all assets that the borrower has accumulated Collateral - ANSWERSsomething of value that can be pledged as security for repayment of the loan Mortgage Banker - ANSWERSentities which provide their own funds for the purpose of providing mortgage financing, as opposed to commercial banks Correspondent Lender - ANSWERSUsually smaller in scale than mortgage bankers or brokers, these lenders typically extend loans with their own funds Capital Gains Tax for Married Couple & Filing Jointly - ANSWERS500k & 250k to qualify the property must have been the individuals primary residence for 2 of the previous 5 years Housing and Economic Recovery Act of 2008 - ANSWERSSigned by President George Bush to help with the recovery of America's residential housing market When was the Federal Housing Association (FHA) created? - ANSWERS1929 1934 X 1912 2008 Who funds the FHA? - ANSWERSAmerican Tax Payers The FED Fannie Mae The FHA funds itself X How long is the lifespan of a $20 bill? - ANSWERSMore than 15 years Less than 10 years X Less than 5 years More than 10 years What is the prime rate? - ANSWERSThe interest rate that is determined by individual banks Who provides VA home loans? - ANSWERSPrivate Lenders X FHA The VA itself All of these The single family housing direct home loan is also known as - ANSWERSProgram 101 Section 502 Direct Loan Program X Section 8 Program Housing None of these is correct