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CHAMPIONS REAL ESTATE FINANCE
EXAM 2024-2025 QUESTIONS AND
CORRECT ANSWERS (100% CORRECT
ANSWERS) PLUS STUDY GUIDE (BRAND
NEW!!)
The secondary mortgage market was designed to provide greater liquidity to the residential real estate market, primarily by _____. - ANSWER-The sale of mortgage loans as investments
Raising taxes and increasing borrowing are two ways at the treasury level to: -
ANSWER-Raise funds to pay for government spending
_____ is the consummation of a contractual real estate transaction in which all appropriate documents are signed, and the mortgage loan proceeds are disbursed by the lender. - ANSWER-Closing
The primary determinants of real estate values are supply and _____. - ANSWER- Demand
_____ is something of value that can be pledged as security for repayment of a loan. - ANSWER-Collateral
The Fed uses three primary monetary policy tools to influence the cost and
availability of credit: open market operations, the discount rate, and _____. -
ANSWER-Reserve requirements
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pg. 2 When the costs of production and services increase, causing manufacturing prices to rise, it is called _____. - ANSWER-Cost-push inflation
Which of the following transactions is exempt from RESPA? - ANSWER- Temporary loans
Under the _____, the use of certain terms in an advertisement triggers the need for full disclosure of lending terms. - ANSWER-Truth in Lending Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____. - ANSWER-Consumer Financial Protection Bureau
How can Sylvia ensure that Victor is properly licensed as an RMLO? - ANSWER- She can look him up in the NMLSR
Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae requirements for purchase are called _____. - ANSWER-Conforming loans
Servicing includes which of the following activities? - ANSWER-Maintaining records of payment
The monetary policies of the _____affects interest rates and the availability of funds. - ANSWER-Federal Reserve
An excess supply of money in the market results in monetary _____. - ANSWER- Inflation
Which agency insures deposits in banks and thrift institutions for up to $250,000? - ANSWER-The Federal Deposit Insurance Corporation 2 / 4
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The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow funds on a short-term basis. - ANSWER-Discount rate
Which of the following housing objectives does Fannie Mae address? - ANSWER- Regional imbalances of available mortgage credit, The origination of mortgages for sale, The standardization of mortgage loans
A _____ lender is one who funds mortgage loans from deposits on hand, retaining the loans long term. - ANSWER-Portfolio
is a government-sponsored enterprise with the mission of providing a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. - ANSWER-Farmer Mac
The secondary market provides greater _____ to the residential real estate market by providing a steady supply of funds from investors. - ANSWER-Liquidity
Fannie Mae operates with _____ to enhance the flow of funds through the secondary market to home buyers. - ANSWER-Private capital
The two largest issuers of Real Estate Mortgage Investment Conduits are _____ and _____. - ANSWER-Fannie Mae and Freddie Mac
Which of the following statements is INCORRECT? - ANSWER-Ginnie Mae sells mortgage-backed securities and purchases mortgage loans.
A(n) _____ is a person, corporation, or firm not otherwise in banking that provides its own funds for mortgage financing purposes. - ANSWER-Mortgage banker 3 / 4
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Which act increased the insurance coverage on all federally insured credit union accounts up to $250,000? - ANSWER-Dodd-Frank Wall Street Reform Act
What type of property might an Equity Estate REIT purchase - ANSWER-Office buildings, apartments, self storage
A _____ is a debt instrument. - ANSWER-Corporate bond
The primary market is where _____ go to borrow money. - ANSWER-Consumers
Which of the following lends money in the primary market? - ANSWER-Mortgage companies, commercial banks, credit unions
____ is the least common form of mortgage financing. - ANSWER-seller financing
____ were created in the early 1800s because banks did not lend money for residential mortgages. - ANSWER-savings and loans
An easement for ingress and egress is known as a(n) _____. - ANSWER- Encumbrance
Which of the following types of liens is one that is freely given, usually as collateral for a loan? - ANSWER-Involuntary lien
Under a(n) _____, when the final payment is made to the seller, title transfers to the buyer. - ANSWER-Special warranty deed
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