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Real Estate Finance I – CHAMPIONS EXAM

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Real Estate Finance I – CHAMPIONS EXAM The _________ is the central banking system of the United States. (a) Federal Deposit Insurance Company (b) The U.S. Treasury (c) The U.S. Mint (d) The Federal Reserve The three major national credit reporting agencies are, Experian, Equifax and _________. (a) TransAtlantic (b) Union Pacific (c) Transtar (d) TransUnion Because it is a gift, the lender and/or the agent can provide gift funds to the borrower to be used as a down payment on an FHA loan. (a) True (b) False The two major purchasers of mortgages in the secondary market are: (a) Freddie Mac and Ginnie Mae (b) Fannie Mae and Freddie Mac (c) Ginne Mae and Fannie Mae (d) FHFA and HECM If a borrower is in default, the mortgage servicer may start the _________ process. (a) Forestalling (b) Closing (c) Casting (d) Foreclosure A collateral-dependent loan is also known as a __________. (a) Title loan (b) Cash advance (c) Hard money loan (d) Payment option loan Lenders bear less risk in making an FHA loan because the FHA: (a) Borrowers generally have higher than average income and credit (b) Requires a substantial down payment that minimizes risk (c) Is default insurance that will pay a claim to a lender in the event of default (d) Requires that the borrower have a higher credit score than other programs While some expenses may be paid in the form of a seller contribution or other means, the borrower actually must have the funds on hand for the: (a) Downpayment (b) Appraisal fee (c) Points (d) Brokerage fee FHA loans are available for: (a) Single family homes (b) Multifamily properties (c) Manufactured homes (d) All of the above An ARM that offers a fixed-rate period during the first years of the loan usually has an initial adjustment cap that is higher than the per adjustment cap. (a) True (b) False _________ is defined as the sum of currency held by the public and transaction deposits at depository institutions. (a) M1 (b) M2 (c) M3 (d) MI-5 The _________ is where borrowers and mortgage lenders come together to create and negotiate the terms of a mortgage transaction. (a) Money market (b) Credit market (c) Primary market (d) Secondary market A home was built 30 years ago, but is much like a home that is 10 years old, based upon its condition. In the appraisal, ten years is the home's ___________. (a) Useful life (b) Effective age (c) Chronological age (d) Depreciated age The process of making a lending decision is known as ___________. (a) Processing (b) Applying (c) Underwriting (d) Credit Scoring In the Loan Estimate, the Comparisons Table: (a) Displays offers from multiple lenders (b) Pro

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