Champions real estate finance Questions and Accurate Answers Latest Update 2024/2025

Champions real estate finance Questions and Correct Answers Latest Update _____ 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 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 The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow funds on a short-term basis. - Answer -Discount rate Raising taxes and increasing borrowing are two ways at the treasury level to: - Answer -Raise funds to pay for government spending 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 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 NMLSRThe 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 Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae requirements for purchase are called _____. - Answer -Conforming loans 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. - Answer - A(n) _____ is a person, corporation, or firm not otherwise in banking that provides its own funds for mortgage financing purposes. - Answer -Mortgage banker 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