Real Estate Finance champion school test Questions and Correct Solutions 2024

Real Estate Finance champion school test Questions and Correct Solutions 2024 Loan processing - Answer -The process of collecting information about a borrower in order to build a loan file that will be used to make an underwriting decision Underwriting - Answer -The process of evaluating a borrowers loan application to determine the risk involved for the lender Funding - Answer -The process of transferring funds to a title or escrow company for disbursement Servicing - Answer -Sending monthly payment statements and collecting monthly payments maintaining payment records and following up on delinquencies Origination - Answer -The process of creating a new mortgage loan Residential mortgages are divided into two broad categories - Answer -Conventional loans and governmental loans Governmental loans include - Answer -FHA, VA, USDA Loans that are not sold in the secondary market are called - Answer -Portfolio loans because the lender holds the loan and his or her investment portfolio Conventional conforming loans - Answer -Conventional loans that meet the standards of Fannie Mae and Freddie Mac Four C's of good lending - Answer -Character capacity capital and collateral Character - Answer -Is the measure of the willingness of a borrower to make on-time payments Capacity - Answer -Is a measure of the borrowers ability to repay the debt and is demonstrated through current earnings and job stability Capital - Answer -The sum of all assets that the borrower has accumulated savings accounts investments and other assets demonstrate a level of financial responsibility Collateral - Answer -Something of value that can be pledged as security for repayment of the loan One point discount - Answer -Is one percent of the loan amount and is an upfront payment of interest paid by borrowers do to reduce the interest rate on the loan Mortgage broker - Answer -Middleman between the borrower and the lender negotiating selling or arranging loans to be delivered to larger investorsMortgage banker - Answer -Provide their own funds for the purpose of providing mortgage financing as opposed to commercial banks savings associations 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. Funding - Answer -The process of transferring funds to a title or escrow company for disbursement Supply and demand - Answer -The primary