Champions real estate finance ACTUAL
QUESTIONS AND CORRECT ANSWERS
mortgage Broker - CORRECT ANSWERS✅✅Functions as a middleman between the
borrower and the lender, negotiating, selling or arranging loans to be delivered to large
investors
Mortgage Banker - CORRECT ANSWERS✅✅Provide their own funds for the purpose of
providing mortgage financing
Correspondent Lender - CORRECT ANSWERS✅✅Smaller in scale then mortgage bankers
or brokers, these lenders typically extended loans with their own funds at their own risk
Origination - CORRECT ANSWERS✅✅The process of creating a new mortgage loan
Underwriting - CORRECT ANSWERS✅✅Detailed process of evaluating a borrowers loan
application to determine the risk involved for the lender
Closing/Settlement - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅The process of transferring funds into a title or escrow
company for disbursement
Housing and Economic Recovery Act of 2008 (HERA) - CORRECT
ANSWERS✅✅Designed to assist with recovery and revitalization of America's residential
housing market
SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) - CORRECT
ANSWERS✅✅Sets a minimum standard for licensing and registering mortgage loan
originators.
, M1 - CORRECT ANSWERS✅✅Sum of currency held by the public and transaction
deposits at depository institutions
M2 - CORRECT ANSWERS✅✅M1 plus savings accounts, certificates of deposit, and other
liquid assets
monetary policy - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅Federal government spending.
The Federal Reserve - CORRECT ANSWERS✅✅The central banking system of the United
States
Monetary inflation - CORRECT ANSWERS✅✅Excess of money supply in the market
discount rate - CORRECT ANSWERS✅✅Interest rate a Reserve Bank charges eligible
financial institutions to borrow funds on a short term basis.
federal funds rate - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅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) - CORRECT ANSWERS✅✅charters and
regulates national banks
US Mint - CORRECT ANSWERS✅✅Make US coins
QUESTIONS AND CORRECT ANSWERS
mortgage Broker - CORRECT ANSWERS✅✅Functions as a middleman between the
borrower and the lender, negotiating, selling or arranging loans to be delivered to large
investors
Mortgage Banker - CORRECT ANSWERS✅✅Provide their own funds for the purpose of
providing mortgage financing
Correspondent Lender - CORRECT ANSWERS✅✅Smaller in scale then mortgage bankers
or brokers, these lenders typically extended loans with their own funds at their own risk
Origination - CORRECT ANSWERS✅✅The process of creating a new mortgage loan
Underwriting - CORRECT ANSWERS✅✅Detailed process of evaluating a borrowers loan
application to determine the risk involved for the lender
Closing/Settlement - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅The process of transferring funds into a title or escrow
company for disbursement
Housing and Economic Recovery Act of 2008 (HERA) - CORRECT
ANSWERS✅✅Designed to assist with recovery and revitalization of America's residential
housing market
SAFE Act (Secure & Fair Enforement of Mortgage Licensing Act) - CORRECT
ANSWERS✅✅Sets a minimum standard for licensing and registering mortgage loan
originators.
, M1 - CORRECT ANSWERS✅✅Sum of currency held by the public and transaction
deposits at depository institutions
M2 - CORRECT ANSWERS✅✅M1 plus savings accounts, certificates of deposit, and other
liquid assets
monetary policy - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅Federal government spending.
The Federal Reserve - CORRECT ANSWERS✅✅The central banking system of the United
States
Monetary inflation - CORRECT ANSWERS✅✅Excess of money supply in the market
discount rate - CORRECT ANSWERS✅✅Interest rate a Reserve Bank charges eligible
financial institutions to borrow funds on a short term basis.
federal funds rate - CORRECT ANSWERS✅✅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 - CORRECT ANSWERS✅✅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) - CORRECT ANSWERS✅✅charters and
regulates national banks
US Mint - CORRECT ANSWERS✅✅Make US coins
