CHAMPIONS REAL ESTATE EXAM LAW OF AGENCY /
NEWEST CHAMPIONS REAL ESTATE LAW OF AGENCY
ACTUAL TEST QUESTIONS AND WELL ELABORATED
ANSWERS (100% CORRECT VERIFIED ANSWERS) NEW
UPDATED VERSION |GUARANTEED PASS A+. (FULL
REVISED EXAM)
mortgage Broker - ANSWER: Functions as a middleman between the borrower and
the lender, negotiating, selling or arranging loans to be delivered to large investors
Mortgage Banker - ANSWER: Provide their own funds for the purpose of providing
mortgage financing
Correspondent Lender - ANSWER: Smaller in scale then mortgage bankers or
brokers, these lenders typically extended loans with their own funds at their own
risk
Origination - ANSWER: The process of creating a new mortgage loan
Underwriting - ANSWER: Detailed process of evaluating a borrowers loan application
to determine the risk involved for the lender
Closing/Settlement - ANSWER: 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 - ANSWER: The process of transferring funds into a title or escrow company
for disbursement
Housing and Economic Recovery Act of 2008 (HERA) - ANSWER: Designed to assist
with recovery and revitalization of America's residential housing market
SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) - ANSWER: Sets a
minimum standard for licensing and registering mortgage loan originators.
M1 - ANSWER: Sum of currency held by the public and transaction deposits at
depository institutions
M2 - ANSWER: M1 plus savings accounts, certificates of deposit, and other liquid
assets
monetary policy - ANSWER: 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 - ANSWER: Federal government spending.
The Federal Reserve - ANSWER: The central banking system of the United States
Monetary inflation - ANSWER: Excess of money supply in the market
discount rate - ANSWER: Interest rate a Reserve Bank charges eligible financial
institutions to borrow funds on a short term basis.
federal funds rate - ANSWER: 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 - ANSWER: 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) - ANSWER: charters and regulates
national banks
US Mint - ANSWER: Make US coins
Department of housing and urban development (HUD 1965) - ANSWER: Create
strong sustainable inclusive communities and quality affordable homes.
The Federal Housing Administration (FHA) - ANSWER: Provides mortgage loans made
by FHA approved lenders through the United States and its territories
Community Development Block Grant (CDBG) - ANSWER: Help communities with
economic development, Job opportunities and housing rehabilitation
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 - ANSWER:
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) - ANSWER: Examine and enforce
consumer protection regulations for all mortgage related business. Established
under Dodd-Frank
Community Reinvestment Act - ANSWER: A law requiring lenders to meet the needs
of the community in which they are charted to do business.
Redlining - ANSWER: a practice in which banks refuse to make loans to people living
in certain geographic locations
NEWEST CHAMPIONS REAL ESTATE LAW OF AGENCY
ACTUAL TEST QUESTIONS AND WELL ELABORATED
ANSWERS (100% CORRECT VERIFIED ANSWERS) NEW
UPDATED VERSION |GUARANTEED PASS A+. (FULL
REVISED EXAM)
mortgage Broker - ANSWER: Functions as a middleman between the borrower and
the lender, negotiating, selling or arranging loans to be delivered to large investors
Mortgage Banker - ANSWER: Provide their own funds for the purpose of providing
mortgage financing
Correspondent Lender - ANSWER: Smaller in scale then mortgage bankers or
brokers, these lenders typically extended loans with their own funds at their own
risk
Origination - ANSWER: The process of creating a new mortgage loan
Underwriting - ANSWER: Detailed process of evaluating a borrowers loan application
to determine the risk involved for the lender
Closing/Settlement - ANSWER: 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 - ANSWER: The process of transferring funds into a title or escrow company
for disbursement
Housing and Economic Recovery Act of 2008 (HERA) - ANSWER: Designed to assist
with recovery and revitalization of America's residential housing market
SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) - ANSWER: Sets a
minimum standard for licensing and registering mortgage loan originators.
M1 - ANSWER: Sum of currency held by the public and transaction deposits at
depository institutions
M2 - ANSWER: M1 plus savings accounts, certificates of deposit, and other liquid
assets
monetary policy - ANSWER: 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 - ANSWER: Federal government spending.
The Federal Reserve - ANSWER: The central banking system of the United States
Monetary inflation - ANSWER: Excess of money supply in the market
discount rate - ANSWER: Interest rate a Reserve Bank charges eligible financial
institutions to borrow funds on a short term basis.
federal funds rate - ANSWER: 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 - ANSWER: 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) - ANSWER: charters and regulates
national banks
US Mint - ANSWER: Make US coins
Department of housing and urban development (HUD 1965) - ANSWER: Create
strong sustainable inclusive communities and quality affordable homes.
The Federal Housing Administration (FHA) - ANSWER: Provides mortgage loans made
by FHA approved lenders through the United States and its territories
Community Development Block Grant (CDBG) - ANSWER: Help communities with
economic development, Job opportunities and housing rehabilitation
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 - ANSWER:
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) - ANSWER: Examine and enforce
consumer protection regulations for all mortgage related business. Established
under Dodd-Frank
Community Reinvestment Act - ANSWER: A law requiring lenders to meet the needs
of the community in which they are charted to do business.
Redlining - ANSWER: a practice in which banks refuse to make loans to people living
in certain geographic locations
