Champions School of Real Estate Finance Latest Update 2025-2026 Exam 75 Questions with 100% Verified Correct Answers Guaranteed A+
_____ provides insurance on single family, multifamily, and manufactured house -
CORRECT ANSWER: FHA
1 point = ________ of the loan amount - CORRECT ANSWER: 1%
A _____ is the borrowers unconditional promise to repay and includes the amount
borrowed, payment amount, due date, and rate of interest - CORRECT ANSWER:
Promissory note
A ______ is a pledge of real estate as security for repayment of a debt - CORRECT
ANSWER: Mortgage
A borrower is known as a - CORRECT ANSWER: Mortgagor
A claim, lien, charge, or liability attached to and binding real property - CORRECT
ANSWER: Encumbrance
A clause in which the holder of the mortgage permits a subsequent mortgage to take
priority is known as a - CORRECT ANSWER: Subordinate clause
A clause that gives the borrower the ability to replace the primary instrument with another without affecting the subordinate instrument's position - CORRECT ANSWER: Lifting clause
A contract for deed becomes fully executed when.... - CORRECT ANSWER: The final
loan payment is made
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A lender is known as a - CORRECT ANSWER: Mortgagee
A marketing time over 6 month may be problematical as it indicates... - CORRECT
ANSWER: A slow market that creates a drag on property value
A right given by law to certain creditors to have debts paid out of the properly of a
defaulting debtor, usually through a court sale - CORRECT ANSWER: Lien
A second mortgage is an instrument ______ to the primary mortgage - CORRECT
ANSWER: Subordinate
Addresses imbalance of mortgage credit among regions of the unite state by making funds available. (focus attention to help pump more money into the economy) -
CORRECT ANSWER: Fannie Mae
All residential mortgage loan originators must now be registered with... - CORRECT
ANSWER: Nationwide Mortgage Licensing System and Registry (NMLSR)
Allows lenders to originate mortgage for sale rather than for portfolio investment. (lower
rates better fees) - CORRECT ANSWER: Fannie Mae
An ______ might also be an ideal product for the borrower that believes that the trend in
mortgages rate is downward - CORRECT ANSWER: ARM
Any excess money left over from the forced sale is given to the ______ - CORRECT
ANSWER: Debtor (borrower)
Blanket Mortgage - CORRECT ANSWER: A mortgage which covers more than one
piece of real estate. Often used by a developer in the financing of undeveloped lots.Contains a partial release clause.
Buyer's market - CORRECT ANSWER: When supply is high and demand is low
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