Test Bank Champions Real Estate
Finance Exam Question and Answer
2026/2027 | A+ Verified Updated | Exam
Focus
• 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 -✓✓Detailed process of evaluating a borrowers loan application to
determine the risk involved for the lender
• Closing/Settlement -✓✓Consummation of a contractual real estate transaction in which
all appropriate documents are signed and the proceeds of the mortgage loan are then
distributed by the lender
• Funding -✓✓The process of transferring funds into a title or escrow company for
disbursement
• Housing and Economic Recovery Act of 2008 (HERA) -✓✓Designed to assist with
recovery and revitalization of America's residential housing market
• SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) -✓✓Sets a minimum
standard for licensing and registering mortgage loan originators.
• M1 -✓✓Sum of currency held by the public and transaction deposits at depository
institutions
• M2 -✓✓M1 plus savings accounts, certificates of deposit, and other liquid assets
• monetary policy -✓✓Maintenance of a stable money supply that provides for growth in
the economy while keeping inflation in check. Federal reserve is responsible for
monetary policy
, • fiscal policy -✓✓Federal government spending.
• The Federal Reserve -✓✓The central banking system of the United States
• Monetary inflation -✓✓Excess of money supply in the market
• discount rate -✓✓Interest rate a Reserve Bank charges eligible financial institutions to
borrow funds on a short term basis.
• federal funds rate -✓✓Is the rate that the federal reserve charges banks for unsecured
loans most of which are for a very short term (sometimes overnight) banks use these to
meet their liquidity requirements when withdrawals threaten to exceed cash on hand
• US Treasury -✓✓Primarily responsible for raising funds to finance the operations of
the US government. Management of fiscal policy
• Office of the Comptroller of the Currency (OCC) -✓✓charters and regulates national
banks
• US Mint -✓✓Make US coins
• Department of housing and urban development (HUD 1965) -✓✓Create strong
sustainable inclusive communities and quality affordable homes.
• The Federal Housing Administration (FHA) -✓✓Provides mortgage loans made by
FHA approved lenders through the United States and its territories
• Community Development Block Grant (CDBG) -✓✓Help communities with economic
development, Job opportunities and housing rehabilitation
• Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 -✓✓Promote
the financial stability of the United States by improving accountability and transparency
in the financial system, to end "to big to fail" to protect the American taxpayer by ending
bailouts to protect consumers from abusive financial services practices and other
purposes
• Consumer Financial Protection Bureau (CFPB) -✓✓Examine and enforce consumer
protection regulations for all mortgage related business. Established under Dodd-Frank
• Community Reinvestment Act -✓✓A law requiring lenders to meet the needs of the
community in which they are charted to do business.
• Redlining -✓✓a practice in which banks refuse to make loans to people living in certain
geographic locations
Finance Exam Question and Answer
2026/2027 | A+ Verified Updated | Exam
Focus
• 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 -✓✓Detailed process of evaluating a borrowers loan application to
determine the risk involved for the lender
• Closing/Settlement -✓✓Consummation of a contractual real estate transaction in which
all appropriate documents are signed and the proceeds of the mortgage loan are then
distributed by the lender
• Funding -✓✓The process of transferring funds into a title or escrow company for
disbursement
• Housing and Economic Recovery Act of 2008 (HERA) -✓✓Designed to assist with
recovery and revitalization of America's residential housing market
• SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) -✓✓Sets a minimum
standard for licensing and registering mortgage loan originators.
• M1 -✓✓Sum of currency held by the public and transaction deposits at depository
institutions
• M2 -✓✓M1 plus savings accounts, certificates of deposit, and other liquid assets
• monetary policy -✓✓Maintenance of a stable money supply that provides for growth in
the economy while keeping inflation in check. Federal reserve is responsible for
monetary policy
, • fiscal policy -✓✓Federal government spending.
• The Federal Reserve -✓✓The central banking system of the United States
• Monetary inflation -✓✓Excess of money supply in the market
• discount rate -✓✓Interest rate a Reserve Bank charges eligible financial institutions to
borrow funds on a short term basis.
• federal funds rate -✓✓Is the rate that the federal reserve charges banks for unsecured
loans most of which are for a very short term (sometimes overnight) banks use these to
meet their liquidity requirements when withdrawals threaten to exceed cash on hand
• US Treasury -✓✓Primarily responsible for raising funds to finance the operations of
the US government. Management of fiscal policy
• Office of the Comptroller of the Currency (OCC) -✓✓charters and regulates national
banks
• US Mint -✓✓Make US coins
• Department of housing and urban development (HUD 1965) -✓✓Create strong
sustainable inclusive communities and quality affordable homes.
• The Federal Housing Administration (FHA) -✓✓Provides mortgage loans made by
FHA approved lenders through the United States and its territories
• Community Development Block Grant (CDBG) -✓✓Help communities with economic
development, Job opportunities and housing rehabilitation
• Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 -✓✓Promote
the financial stability of the United States by improving accountability and transparency
in the financial system, to end "to big to fail" to protect the American taxpayer by ending
bailouts to protect consumers from abusive financial services practices and other
purposes
• Consumer Financial Protection Bureau (CFPB) -✓✓Examine and enforce consumer
protection regulations for all mortgage related business. Established under Dodd-Frank
• Community Reinvestment Act -✓✓A law requiring lenders to meet the needs of the
community in which they are charted to do business.
• Redlining -✓✓a practice in which banks refuse to make loans to people living in certain
geographic locations
