Champion School Of Real Estate

Broker A Properly Licensed party who serves a principal in an agency relationship Agency A fiduciary relationship between a broker and a principal or a broker and a client Fiduciary A Party acting for another in a position of trust-a broker or agent Fiduciary Relationship The relationship based on trust-the relationship governed by the law of the agency between a broker and a principal Principal A party represented by a broker in an agency relationship-also calle...

VA Loan Requirements Veterans who were honorably discharged AND who meet the service requirements are eligible for VA home loan benefits. Eligibility is additionally determined by the time frame in which the veteran served and the number of days of active duty. The veteran must obtain a certificate of eligibility (COE). Origination The process of creating a new mortgage loan, including all steps taken by a lender to attract and qualify a borrower, Mortgage Broker Typically funct...

TERLA - Texas Real Estate License Act - Created in 1939 TREC - Texas Real Estate Commission - Created in 1949 to administer/enforce TERLA Real Estate Center - Located at Texas A&M University - Created in 1970 TREC-Promulgated Forms/Leases (Residential): - One-to-Four Family Residential Contract (Resale) - New Home Contract (Completed Construction) - Residential Condo Contract (Resale) - New Home Contract (Incomplete Construction) - Unimproved Propert...

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 mortgage bankers or brokers, these lenders typically extended loans with their own funds at their own risk Origination The process of creating a new mortgage loan Underwriting Detaile...

Texas Real Estate Commission TREC-created by the Legislature in 1949. 9 member commission whose primary purpose is to carry out the provision of the License Act Real Estate Recovery Trust Account administered by TREC. the purpose of the account is to protect aggrieved individuals who suffer monetary loss due to illegal acts of license holders unlawful practice of law license holder is not qualified to add provisions to contracts that go beyond factual business details. Pr...

The principal is also known as client fiduciary relationship a relationship founded on trust and confidence Agency Relationship Exists when one person (the agent) acts for, or on behalf of another person (the principal). the principal is the one who hires and gives authority to the agent Texas Real Estate License Act TRELA Was passed 1939. The purpose is to protect the public against unscrupulous brokers and sales agents. Texas Real Estate Commission TREC...

A market for the purchase and sale of existing mortgages designed to provide greater liquidity for selling mortgages is called the ________. secondary market The Federal agency established to restore Fannie Mae and Freddie Mac to a sound and solvent financial condition is _____. Federal Housing Finance Agency (FHFA) The ____ guarantee allows mortgage lenders to obtain a better price for their loan in the capital markets. Gov't. National Mortgage Association - Ginnie Mae ...

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 allowing the borrower to obtain partial releases of specific lots by making required lump sum payments. Release Clause One percent of a loan that is a loan processing fee Originatio...

Principles of Real Estate 2 Champions School of Real Estate test |258 questions with 100% correct answers

Loan processing 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 The process of evaluating a borrowers loan application to determine the risk involved for the lender Funding The process of transferring funds to a title or escrow company for disbursement Servicing Sending monthly payment statements and collecting monthly payments maintaining payment records and following up...