Champion Real Estate Finance Version 2 Exam With Answers (246 Solved Questions)

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Champions Real Estate Finance 2 Versions Exam With Perfect Questions And AnswersThe consummation of a real estate transaction in which all appropriate documents aresigned and the proceeds of the mortgage loan are then disbursed by the lender. - ClosingIncludes 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. - Servicingan economic concept that states that the price of a good rises and falls depending on howmany people want it and depending on how much of the good is available. - Supply andDemandThe process of transferring funds to a title or escrow company for disbursement - FundingDesigned to enhance consumer protection and reduce fraud. (Key component of HERA) - TheSafe ActIs defined as the sum of currency held by the public and transaction deposits at depositoryinstitutions. - M1Is defined as M1 plus saving deposits, small-denomination time deposits (those issued inamounts of less than $100,000) and retail money market mutual funds shares. - M2Is currency that is not backed by any precious metals at all. - Fiat MoneyIs the maintenance of a stable money supply that provides for growth in the economy whilekeeping inflation in. The federal reserves is responsible for this policy in the United States. -Monetary Policy

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Federal Government spending. Approved by Congress. At the treasury level, funds can beraised to pay for government spending by raising taxes and increasing borrowing. - FiscalPolicyis the central bank of the United States - Federal Reserve (The Fed)When there is an excess of money supply in the market. - Monetary inflationWhen there is more money in the market and less goods for sale. - Demand-pull inflationOccurs when the cost of production and offering services increase, thereby causingmanufacturers and tradespeople/vendors to rais their prices accordingly. - Cost-pushinflationThe interest rate charged member banks that borrow from the Federal Reserve Systems -Discount rateIs the rate that the Federal reserve charges banks for unsecured loans, most of which arefor a very short term. - Federal Funds RateThe 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. - Loan-to-Value Ratio (LTV)Includes both real and personal property ( fixtures and furnishings) - Package MortgageCovers more than one piece of property. - Blanket MortgageMethod of financing which preserves the low, existing interest rate on the original note. -Wraparound MortgagePermits additional borrowing on the same note. This is sometimes called a credit cardmortgage or a home equity line of credit - HELOC. - Open-End Mortgage

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The monthly house payment includes principal, interest, taxes and insurance (known as PITI)- Budget MortgageA hard money loan is a specific type of asset-based financing in which a borrower receivesfunds secured by the value of a parcel of real estate. - Collateral -Dependent LoansIs a measure of the willingness of a borrower to make on-time payments. Credit characteris revealed in the borrower's credit report. - CharacterIs a measure of the borrower's ability to repay the debt, and is demonstrated throughcurrent earnings and job stability. - CapacityIs the sum of all assets that the borrower has accumulated. - CapitalIs something of value that can be pledged as security for repayment. - CollateralIs the return that the investor recieves over the life of the loan. (Also known as profit) -YieldThe process of creating a new mortgage loan, including all steps taken by a lender to attractand qualify a borrower. - OriginatorTypically functions as a middleman between the borrower and the lender, negotiating, sellingor arranging loans to be delivered to larger investors. At one time originated up to 80% ofall mortgage loans. (Back on the rise) - Mortgage BrokerEntities which provide their own funds for the purpose of providing mortgage financing, asopposed to commercial banks/savings associations. (Held, or "Warehoused") - MortgageBankerUsually smaller in scale than mortgage bankers or brokers, these lenders typically extendloans with their own funds, at their own risk. - Correspondent LenderOnce application is complete the file moves into this phase. - Processing

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The detailed process of evaluating a borrower's loan application to determine the riskinvolved for the lender. - UnderwritingWas created to restore the nations financial stability and restart economic growth. - TroubleAsset Relief Program (TARP)Created by Congress in 1972 and became part of the Department of the Treasury in 1873. Theprimary mission is to serve the American people by manufacturing, distributing, andcirculating precious metal coins, collecting coins and national medals. Also entrusted withproviding security over assets. - United State MintAn agency created in 1933 to insure individuals' bank accounts, protecting people againstlosses due to bank failures (Insures deposits only) - The Federal Deposit InsuranceCorporation (FDIC)A system of regional banks from which local lending institutions everywhere in Americaborrow funds to finance housing, economic development, infrastructure and jobs. - TheFederal Home Loan Bank (FHLB) SystemProvides mortgage insurance on loans made by blank- approved lenders throughout the USand its territories. Insures mortgages on single-family and multifamily homes includingmanufactured homes and hospitals. It is the largest insurer of mortgages in the world,insuring over 34 million properties since its inception in 1934. - The Federal HousingAdministration (FHA)Provides lenders with protection against losses as the result of homeowners defaulting ontheir mortgage loans. - FHA mortgage insuranceTo help communities with economic development, job opportunities and housingrehabilitation - Community Development Block Grants (CDBG)Block grants to develop and support affordable housing for low-income residents. - HOMEInvestment Partnership Program

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In the form of section 8 certificates or vouchers for low-income households. - RentalassistanceWas established in the U.S in 1968 to promote homeownership. It is wholly-ownedgovernment association that operates a mortgage-backed securities program designed tofacilitate the flow of capital into housing industry. Does not issue, sell or buy pass-throughmortgage-backed securities or purchases mortgages loans. It simply guarantees (insures).- Ginnie Mae (GNMA)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. - Federal Fair Housing Act of1968A federal cabinet department is active in national housing programs. Its mission is to createstrong, sustainable, inclusive communities and quality affordable homes. It prevents housingdiscrimination through public education and enforcement are administered by the AssistantSecretary for Fair Housing and Equal Opportunity (FHEO) - Department of Housing and UrbanDevelopment (HUD)All residential mortgage loan originators must now be registered with the NationwideMortgage Licensing System and Registry. - NMLSREstablished by the Dodd-Frank Act. The Bureau has the authority to examine and enforceconsumer protection regulations for all mortgage-related businesses, large non-bankfinancial companies, and banks and credit unions with assets greater than $10 billion. -Consumer Financial Protection Bureau (CFPB)A practice in which banks refuse to make loans to people living in certain geographiclocations. - RedliningThe 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 aregiven an equal chance to obtain credit. - Equal Credit Opportunity Act (ECOA)

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A United States federal law that is designed to protect consumers in any credit transactionsby requiring clear disclosure of key terms of lending arrangments all associated cost. -Truth in Lending Act (TILA)Specific credit terms that may not be advertised unless the advertisement includes otherdetailed information. - Trigger TermsSometimes called the Fair Credit Reporting Dispute Act, is a federal law designed to protectconsumers against unfair credit reporting practices and protect and credit privacy. Toassure the consumer that these agencies are fair, accurate and exhibit confidentiality intheir credit reporting methods. - The Federal Fair Credit Reporting Act (FCRA)Also referred to a "Section 502 loan" is insured by the U.S. Department of Agriculture. Theprogram offers 100% financing (no down payment) for qualified borrowers. First time andrepeat home buyers can obtain this loan. The program is for primary residence only; nosecond homes or investor financing is available under this program. The program is forpurchases and refinancing only and cash-out refinances are Not allowed. - U.S. Departmentof Agriculture (USDA)Is an agency of the US Dept of Agriculture. Farm Loan Programs for a farmer or rancherwho is unable to obtain credit elsewhere to start, purchase, sustain, or expand a familyfarm. - USDA Farm Loans (FSA)Regulates the credit industry and educates consumers and creditors. Agency efforts helpproduce a fair, lawful and healthy credit environment for social and economic prosperity inTexas. - Office of Consumer Credit Commissioner (OCCC)Is responsible for affordable housing, housing related and community service programs, andthe regulation of the states manufactured housing industry. - Texas Department of Housingand Community Affairs (TDHCA)

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a division of the General Land Office of Texas that administers three programs to assistTexas veterans in purchasing a principal residence and/or land and in financing homeimprovements - Texas Veterans Land Board (VLB)The Consumer Financial Protection Bureau's (CFPB)( Blank )which implement the Real EstateSettlement Procedures Act (RESPA) Ensures that consumers throughout the nation areprovided with more helpful information about the cost of the mortgage settlement andprotection from unnecessarily high settlement charges caused by certain abusive practices.- Regulation XProhibits kickbacks, fee-splitting, and unearned fees. - RESPA Section 8Form replaced the GFE form and the initial TILA disclosures and includes some newdisclosures. The form must be provided by the mortgage broker or creditor upon receipt ofan application. The creditor or broker must give the form to the consumer no later than 3business days after the consumer applies for a mortgage loan. - Loan Estimate (LE)The TRID rule requires that the consumer receives the Closing Disclosure no later than 3business days before consummation. - Closing Disclosure Delivery RequirementExists for the purchase and sale of existing mortgages to investors. Designed to providegreater liquidity to the residential real estate market by providing for a steady supply offunds from investors. Wherein loan originators such as mortgage bankers and brokers cansell their loans and thus recover cash for originating more loans. - Secondary MarketPlays a vital role in financing mortgages and increasing homeownership opportunities in theUS. Began in 1938 as an agency of the federal government and was created to bring stabilityto the US housing market. In 1968, it became a privately owned and managed corporation.US Congress re-chartered it as a private company. Mandating that it operate with privatecapital on a self-sustaining basis to enhance the flow of funds through the secondary markethome buyers.The largest investor in home mortgage today. - Federal National MortgageAssociation (FNMA)

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