Champions School of Real Estate - Real Estate Finance Questions & Correct Answers Package/ Graded A+

mortgage Broker : Functions as a middleman between the borrower and the lender, negotiating, selling or arranging loans to be delivered to large investors Mortgage Banker : Provide their own funds for the purpose of providing mortgage financing Correspondent Lender : Smaller in scale then mor...

Loan-to-Value Ratio (LTV) : The 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. Package Mortgage : In...

Mortgage Loans : Most common choice for financing real property. Can be conventional or non-conventional Conventional Loan : Neither federally insured nor guaranteed Non-conventional Loan : Federally insured/guaranteed mortgage loans to encourage ownership (FHA, VA, USDA) Contract for Deed : ...

Seller's market : When supply is low and demand is high Buyer's market : When supply is high and demand is low The process of creating a new mortgage loan : Origination The detailed process of evaluating a borrower's loan application to determine the risk involved for the lender : Underw...

Sending monthly payment statements and collecting monthly payments, maintaining payment records and following up on delinquencies. : Servicing The process of creating a new mortgage loan : Origination The process of collecting information about a borrower in order to build a loan file that wil...

A loan unable to be sold to Fannie Mae or Freddie Mac (i.e. A sub-prime loan) : Non-Conforming Loan VA : Veteran's administration - assists veterans in the purchase of housing by guaranteeing loans) Seller's equity : Cash price minus the loan balance A clause often found in a blanket loan al...

The process of creating a new mortgage loan, including all steps taken by a lender to attract and qualify a borrower are _____. : Origination activities The process of evaluating a borrower's loan application to determine the risk involved for the lender is : Underwriting Which of the follo...

Blanket Loan : Several pieces of property secured by a single loan (several lots on one note) Package Loan : A loan secured by real property plus personal property Down Payment Assistance Programs : Government and private programs whose stated purpose is to help buyers to become homeowners S...