Champions Real Estate Finance Exam Study Guide with Complete Solutions
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Course
2024/2025
Institution
2024/2025
Champions Real Estate Finance Exam
Study Guide with Complete Solutions
Federal National Mortgage Association (FNMA) known as, Fannie Mae - Answer-began in
1938 as an agency of the federal government In 1968, Fannie Mae became a privately owned
and managed corporation Fannie Mae operates exclusi...
Farmer Mac I - Answer✔✔-purchases, or commits to purchase, qualified agricultural or rural
housing mortgage loans, or obligations backed by qualified loans.
Farmer Mac II - Answer✔✔-purchases the portions of qualified loans that are guaranteed by the
U.S. Department of Agriculture
front ratio - Answer✔✔-is used to qualify a borrower for a loan based upon the proposed house
payment and his or her gross monthly income (GMI). The house payment is the monthly
payment of principal, interest, taxes and insurance (PITI). In conventional lending, a front ratio
of 28% means that the house payment (PITI) cannot exceed 28% of the borrower's gross
monthly income.
back ratio - Answer✔✔-is the ratio of the borrower's total recurring monthly debts, including
such obligations as the house payment, payments on all installment debts, monthly payments
on all junior liens, alimony, car lease payments and other recurring payment obligations. In
conventional lending, it is usually 36%. Both ratios must be satisfied
Real Estate Mortgage Investment Conduit (REMIC) - Answer✔✔-allows for the indirect
investment in mortgages through the sale of securities. A ____ purchases "pools" of mortgages.
The mortgages may be of a particular type or level of risk
primary market - Answer✔✔-The market where borrowers and mortgage lenders come
together to create and negotiate terms of a mortgage transaction is called the
Pensions - Answer✔✔-are fed, as with banks and credit unions, by client deposits. Unlike banks,
credit unions return surplus income to their members in the form of dividends
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