REAL ESTATE FINANCE CHAMPIONS NEWEST
COMPLETE 200 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
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 borrower's 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
Benefits of home ownership: - ANSWER: Occupancy, Tax Benefits, Pride of
Ownership, Security, Investment
Character - ANSWER: the willingness of a borrower to make on-time payments
Capacity - ANSWER: the measure of the borrowers ability to repay the debt
Capital - ANSWER: the sum of all assets that the borrower has accumulated
Collateral - ANSWER: something of value that can be pledged as security for
repayment of the loan
Mortgage Banker - ANSWER: entities which provide their own funds for the purpose
of providing mortgage financing, as opposed to commercial banks
Correspondent Lender - ANSWER: Usually 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 - ANSWER: 500k & 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 - ANSWER: Signed by President George
Bush to help with the recovery of America's residential housing market
When was the Federal Housing Association (FHA) created? - ANSWER: 1929
1934 X
1912
2008
, Who funds the FHA? - ANSWER: American Tax Payers
The FED
Fannie Mae
The FHA funds itself X
How long is the lifespan of a $20 bill? - ANSWER: More than 15 years
Less than 10 years X
Less than 5 years
More than 10 years
What is the prime rate? - ANSWER: The interest rate that is determined by individual
banks
Who provides VA home loans? - ANSWER: Private Lenders X
FHA
The VA itself
All of these
The single family housing direct home loan is also known as - ANSWER: Program 101
Section 502 Direct Loan Program X
Section 8 Program Housing
None of these is correct
Congress Created the Federal Housing Administration in - ANSWER: 1949
1939
1984
1934 X
In order to qualify for exemption from capital gains, the property must have been
the primary residence for two of the previous ___ years - ANSWER: 6
3
5X
4
A loan with no discount points is known as a: - ANSWER: Birdie Loan
Par loan X
Interim loan
Air loan
Chapter 2 - ANSWER: Chapter 2
Monetary policy - ANSWER: policy that deals with interest rates and the supply of
money in the US economy
Fiscal Policy - ANSWER: Relates to federal government spending
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