ACEABLE AGENT PRINCIPLES OF REAL
ESTATE 2 Exam Questions & Answers, Well
Elaborated Already Verified Test 100% Verified
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Field Review -CORRECTANSWER When a third party appraiser is sent back out to the
property to check the validity of the first appraisal
Fair Market Value -CORRECTANSWER The price for which a property will sell if
offered openly under normal market conditions
Subject Property -CORRECTANSWER The property that is subject of the CMA
Comparative Market Analysis -CORRECTANSWER Also known as a CMA, this is a
report generated by a license holder that compares prices of recently sold homes
(comparables) in order to estimate the fair market value of a similar property (the
"subject property")
Government Sponsored Enterprises -CORRECTANSWER Publicly traded institutions
that were created by Congress to provide liquidity, stability, and affordability to the
mortgage market
,General Agricultural Mortgage Corporation -CORRECTANSWER A government-
sponsored enterprise (GSE) providing a secondary market for agricultural and rural
mortgage loans; also known as Farmer Mac
Depository Lenders -CORRECTANSWER Institutions that make mortgage loans from
funds derived from their customers' savings accounts
Saving Associations -CORRECTANSWER Specialize in long-term residential loans;
primary function is to promote thrift and home ownership
Federal Home Loan Bank System -CORRECTANSWER eleven private, wholesale
regional U.S. banks chartered to regulate member organizations, set reserve
requirements establish discount rates, and provide insurance or depositors
Federal Deposit Insurance Corportation -CORRECTANSWER created by Congress in
1933 to insure deposits, supervise financial institutions, make large financial institutions
resolvable, and manage receiverships
Commercial Banks -CORRECTANSWER designed to be sage depositories and lenders
for a multitude of commercial banking activities, relying mainly on demand deposits
(checking accounts) for their basic supply of funds
,Credit Unions -CORRECTANSWER provide members with a source of funding for
personal property and, more recently, real estate mortgage loans
Savings Banks -CORRECTANSWER Play an active and important role in local real
estate financing activities, providing long-term mortgage loans with funds derived from
customer savings accounts
Life Insurance Companies -CORRECTANSWER prefer investments in large projects
such as shopping centers as opposed to smaller loans for home mortages and
construction loans
Mortgage Bankers -CORRECTANSWER not bankers in the traditional sense, but as
private entrepreneurs, their income is derived from fees received for originating and
servicing real estate loans
Mortgage Brokers -CORRECTANSWER bring together borrowers and lenders and
earns a fee for that service
Fannie Mae -CORRECTANSWER a government-sponsored enterprise created to act
as a secondary mortgage market facility that could purchase, hold, and sell FHA-
insured loans
, Freddie Mac -CORRECTANSWER a government-sponsored enterprise created in 1970
to further support the secondary mortgage market, specifically to support smaller thrift
banks
Ginnie Mae -CORRECTANSWER a Government National Mortgage Association is a
government-owned entity that supports the secondary mortgage market by
guaranteeing timely payment of principal and interest on privately issued mortgage-
baked securities (MBS) collateralized by FHA, VA, or other government -insured or
guaranteed mortgages
Balloon Payment -CORRECTANSWER a payment made at the mortgage term's end
that is comparatively much larger than the payments that preceded it
Pre-qualifications -CORRECTANSWER the first step in the loan application process
where lenders take prospective borrowers at their word and give borrowers a general
estimate of the amount for which they will be approved
Pre-approval -CORRECTANSWER the second step in the loan application process
where lenders thoroughly review the borrower's qualifications and, if approved, offer a
pre-approval letter indicating the borrower's ability to obtain financing
Loan Approval -CORRECTANSWER the final step in the loan application process, here
lenders review the borrower's credit-worthiness and the value of the property
ESTATE 2 Exam Questions & Answers, Well
Elaborated Already Verified Test 100% Verified
solutions 2025 Top Rated A+
Field Review -CORRECTANSWER When a third party appraiser is sent back out to the
property to check the validity of the first appraisal
Fair Market Value -CORRECTANSWER The price for which a property will sell if
offered openly under normal market conditions
Subject Property -CORRECTANSWER The property that is subject of the CMA
Comparative Market Analysis -CORRECTANSWER Also known as a CMA, this is a
report generated by a license holder that compares prices of recently sold homes
(comparables) in order to estimate the fair market value of a similar property (the
"subject property")
Government Sponsored Enterprises -CORRECTANSWER Publicly traded institutions
that were created by Congress to provide liquidity, stability, and affordability to the
mortgage market
,General Agricultural Mortgage Corporation -CORRECTANSWER A government-
sponsored enterprise (GSE) providing a secondary market for agricultural and rural
mortgage loans; also known as Farmer Mac
Depository Lenders -CORRECTANSWER Institutions that make mortgage loans from
funds derived from their customers' savings accounts
Saving Associations -CORRECTANSWER Specialize in long-term residential loans;
primary function is to promote thrift and home ownership
Federal Home Loan Bank System -CORRECTANSWER eleven private, wholesale
regional U.S. banks chartered to regulate member organizations, set reserve
requirements establish discount rates, and provide insurance or depositors
Federal Deposit Insurance Corportation -CORRECTANSWER created by Congress in
1933 to insure deposits, supervise financial institutions, make large financial institutions
resolvable, and manage receiverships
Commercial Banks -CORRECTANSWER designed to be sage depositories and lenders
for a multitude of commercial banking activities, relying mainly on demand deposits
(checking accounts) for their basic supply of funds
,Credit Unions -CORRECTANSWER provide members with a source of funding for
personal property and, more recently, real estate mortgage loans
Savings Banks -CORRECTANSWER Play an active and important role in local real
estate financing activities, providing long-term mortgage loans with funds derived from
customer savings accounts
Life Insurance Companies -CORRECTANSWER prefer investments in large projects
such as shopping centers as opposed to smaller loans for home mortages and
construction loans
Mortgage Bankers -CORRECTANSWER not bankers in the traditional sense, but as
private entrepreneurs, their income is derived from fees received for originating and
servicing real estate loans
Mortgage Brokers -CORRECTANSWER bring together borrowers and lenders and
earns a fee for that service
Fannie Mae -CORRECTANSWER a government-sponsored enterprise created to act
as a secondary mortgage market facility that could purchase, hold, and sell FHA-
insured loans
, Freddie Mac -CORRECTANSWER a government-sponsored enterprise created in 1970
to further support the secondary mortgage market, specifically to support smaller thrift
banks
Ginnie Mae -CORRECTANSWER a Government National Mortgage Association is a
government-owned entity that supports the secondary mortgage market by
guaranteeing timely payment of principal and interest on privately issued mortgage-
baked securities (MBS) collateralized by FHA, VA, or other government -insured or
guaranteed mortgages
Balloon Payment -CORRECTANSWER a payment made at the mortgage term's end
that is comparatively much larger than the payments that preceded it
Pre-qualifications -CORRECTANSWER the first step in the loan application process
where lenders take prospective borrowers at their word and give borrowers a general
estimate of the amount for which they will be approved
Pre-approval -CORRECTANSWER the second step in the loan application process
where lenders thoroughly review the borrower's qualifications and, if approved, offer a
pre-approval letter indicating the borrower's ability to obtain financing
Loan Approval -CORRECTANSWER the final step in the loan application process, here
lenders review the borrower's credit-worthiness and the value of the property
