Real Estate Finance Champions 2024
Origination - Answer The process of creating a new mortgage loan, including all
steps taken by a lender to attract and qualify a borrower
Credit reports will be ordered, in most cases from all three major national credit
reporting agencies: - Answer Experian, Equifax, and TransUnion
Not all creditors will report to all three, they will - Answer Each reporting agency will
report a different credit score for the borrower
Underwriting - Answer The detailed process of evaluating a borrower's loan
application to determine the risk involved for lender
Fiscal Policy - Answer Which relates to Federal Government spending. Government
spending is approved by the U.S. Congress
The Federal Reserve: 1913 - Answer Is a central banking system of the US
Federal Fair Housing Statues - Answer Prohibit housing discrimination based on
race, color, national origin, sex, religion, families with children, and disabilities
All residential mortgage loan originators must be registered with - Answer the
Nationwide Mortgage Licensing System and Registry (NMLSR)
Texas Department of Housing and Affairs (TDHCA) - Answer An agency responsible
for affordable housing, housing related and community service programs, and the
regulation of the state's manufactured housing industry
Yield - Answer The return that represents the money earned on an investment
The two major purchasers of mortgages in the secondary market are: - Answer
Fannie Mae and Freddie Mac
Freddie Mac - Answer Is a federally chartered corporation established as the Federal
Home Loan Mortgage Corporation (FHLMC) in 197 for the purpose of purchasing
mortgages in the secondary market
Primary Market - Answer Where borrowers and mortgage lenders come together to
create and negotiate terms of a mortgage transaction
Commercial banks are active in _________. While the majority of their loans are sold
in the ________, many of them are retained as ________. - Answer Residential
mortgage lending, secondary market, portfolio loans
Credit unions are: - Answer Non-for-profit organizations that exist to serve their
members. They accept deposits and make loans
Credit Unions focus: - Answer On providing a safe place to save and borrow at
reasonable rates. Unlike banks, they return surplus income to their members in the
form of dividends
, Real Estate Finance Champions 2024
The money that mortgage companies use to make loans come from the sale of
________, which is considered a business transaction, not a savings account
deposit procedure. - Answer Bonds
Government entities regularly sell bonds to - Answer Fund major capital investments
Advantage of municipal bonds is - Answer That the interest paid to investors is not
subject to federal income tax, making them appealing to investors who need to
shelter some income from taxation
Municipal bond - Answer May be exempt from state and local tax.
Encumbrance - Answer A claim, lien, charge, or liability attached to and binding upon
real property.
lien - Answer A right given by law to certain creditors to have their debts paid out of
the property of a defaulting debtor, usually by means of a court sale.
Borrower (mortgagor) - Answer Is the party who signed the promissory note and is
obligated for the repayment of the loan
Occurrences that result in foreclosure include: - Answer Payment delinquency
Failure to pay property tax
Failure to maintain the mortgaged property
Failure to keep the property properly insured
Second Mortgage - Answer An instrument subordinate to the primary mortgage
Lifting clause: - Answer A clause which gives the borrower the ability to replace the
primary instrument with another without affecting the subordinate instrument's
position.
Determining the total (PITI) - Answer The lender will add an amount equal to 1/12 of
the annual taxes and 1/12 of the annual homeowners insurance
Fixed-Rate Mortgages: in an amortizing loan, - Answer The monthly payment
includes an amount that is applied first to interest that is due, with the remainder of
the loan payment being applied to the outstanding loan balance (also known as the
principal balance)
Index and resulting rate: - Answer Move up and down with fluctuations in financial
markets
Initial Adjustment Cap - Answer ARMs that offer a fixed rate period during the first
years of the loan usually have an initial rate cap that is higher than the per
adjustment cap
Making the decision: fixed rate vs. ARM:
For a borrower planning to remain in a home for the long term, - Answer The fixed
rate mortgage is probably the best choice
Origination - Answer The process of creating a new mortgage loan, including all
steps taken by a lender to attract and qualify a borrower
Credit reports will be ordered, in most cases from all three major national credit
reporting agencies: - Answer Experian, Equifax, and TransUnion
Not all creditors will report to all three, they will - Answer Each reporting agency will
report a different credit score for the borrower
Underwriting - Answer The detailed process of evaluating a borrower's loan
application to determine the risk involved for lender
Fiscal Policy - Answer Which relates to Federal Government spending. Government
spending is approved by the U.S. Congress
The Federal Reserve: 1913 - Answer Is a central banking system of the US
Federal Fair Housing Statues - Answer Prohibit housing discrimination based on
race, color, national origin, sex, religion, families with children, and disabilities
All residential mortgage loan originators must be registered with - Answer the
Nationwide Mortgage Licensing System and Registry (NMLSR)
Texas Department of Housing and Affairs (TDHCA) - Answer An agency responsible
for affordable housing, housing related and community service programs, and the
regulation of the state's manufactured housing industry
Yield - Answer The return that represents the money earned on an investment
The two major purchasers of mortgages in the secondary market are: - Answer
Fannie Mae and Freddie Mac
Freddie Mac - Answer Is a federally chartered corporation established as the Federal
Home Loan Mortgage Corporation (FHLMC) in 197 for the purpose of purchasing
mortgages in the secondary market
Primary Market - Answer Where borrowers and mortgage lenders come together to
create and negotiate terms of a mortgage transaction
Commercial banks are active in _________. While the majority of their loans are sold
in the ________, many of them are retained as ________. - Answer Residential
mortgage lending, secondary market, portfolio loans
Credit unions are: - Answer Non-for-profit organizations that exist to serve their
members. They accept deposits and make loans
Credit Unions focus: - Answer On providing a safe place to save and borrow at
reasonable rates. Unlike banks, they return surplus income to their members in the
form of dividends
, Real Estate Finance Champions 2024
The money that mortgage companies use to make loans come from the sale of
________, which is considered a business transaction, not a savings account
deposit procedure. - Answer Bonds
Government entities regularly sell bonds to - Answer Fund major capital investments
Advantage of municipal bonds is - Answer That the interest paid to investors is not
subject to federal income tax, making them appealing to investors who need to
shelter some income from taxation
Municipal bond - Answer May be exempt from state and local tax.
Encumbrance - Answer A claim, lien, charge, or liability attached to and binding upon
real property.
lien - Answer A right given by law to certain creditors to have their debts paid out of
the property of a defaulting debtor, usually by means of a court sale.
Borrower (mortgagor) - Answer Is the party who signed the promissory note and is
obligated for the repayment of the loan
Occurrences that result in foreclosure include: - Answer Payment delinquency
Failure to pay property tax
Failure to maintain the mortgaged property
Failure to keep the property properly insured
Second Mortgage - Answer An instrument subordinate to the primary mortgage
Lifting clause: - Answer A clause which gives the borrower the ability to replace the
primary instrument with another without affecting the subordinate instrument's
position.
Determining the total (PITI) - Answer The lender will add an amount equal to 1/12 of
the annual taxes and 1/12 of the annual homeowners insurance
Fixed-Rate Mortgages: in an amortizing loan, - Answer The monthly payment
includes an amount that is applied first to interest that is due, with the remainder of
the loan payment being applied to the outstanding loan balance (also known as the
principal balance)
Index and resulting rate: - Answer Move up and down with fluctuations in financial
markets
Initial Adjustment Cap - Answer ARMs that offer a fixed rate period during the first
years of the loan usually have an initial rate cap that is higher than the per
adjustment cap
Making the decision: fixed rate vs. ARM:
For a borrower planning to remain in a home for the long term, - Answer The fixed
rate mortgage is probably the best choice
