Champions Real Estate Finance Study Guide Exam Final 2024

Champions Real Estate Finance Study Guide Exam Final 2024 Congress created the Federal Housing Administration in - CORRECT ANSWER-1934 In order to qualify for exemption from capital gains, the property must have been the primary residence for two of the previous ___ years - CORRECT ANSWER-5 years A loan with no discount points is known as a - CORRECT ANSWER-Par loan What is Fiat money - CORRECT ANSWER-Currency that is not backed up by any precious metals At the treasury level, funds can be raised to pay for government spending by increasing borrowing and _____ - CORRECT ANSWER-Raising Taxes The ________ is the interest rate a reserve bank charges eligible financial to borrow funds on a short term basis - CORRECT ANSWER-Discount rate The Fed uses three monterary policy tools to influence the cost and availability of credit: Open Market operations, the discount rate and ____ - CORRECT ANSWER-Reserve Requirements Through which avenue does the US Treasury promote economic growth? - CORRECT ANSWER-Policies that support job creation Which of the following is NOT a function of the Department of the Treasury - CORRECT ANSWER-Campaign finance reform According to the Taxpayer Bill of Rights, taxpayers have the right to: - CORRECT ANSWER-Pay no more than the correct amount of tax, be informed, privacy When was HARP introduced? - CORRECT ANSWER-2009 Which refinancing option does HARP offer? - CORRECT ANSWER-Change from an adjustable to a fixed-rate mortgage, lower interest rates, shorter term loans The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010 established the - CORRECT ANSWER-Consumer Financial Protection Bureau Real Estate transactions regulated by the Office of Consumer Credit Commissioner include which of the following? - CORRECT ANSWER-Home equity loans, Home improvement loans and secondary mortgages... all of these The Community Reinvestment Act, enacted in _____ ensures that banks serve the needs of the community in which they were chartered - CORRECT ANSWER-1977 Secondary Mortgage Market - CORRECT ANSWER-Encompasses the purchase and sale of existing mortgages to investors Disintermediation - CORRECT ANSWER-the act of moving funds from one investment arena to another REMIC - CORRECT ANSWER-holds mortgages in trust for the benefit of investors Conforming Loan - CORRECT ANSWER-Adheres to Fannie Mae and Freddie Mac requirement for purchase of a mortgage Yield - CORRECT ANSWER-return on an investment Redlining - CORRECT ANSWER-The practice of refusing to provide financing in a particular area because of location SML - CORRECT ANSWER-Responsible for the chartering, regulation and supervision of Texas thrift industry TDHCA - CORRECT ANSWER-Responsible for the regulation of the Texas manufactured housing industry SAFE Act - CORRECT ANSWER-Designed to enhance consumer protection and reduce fraud RMLO - CORRECT ANSWER-The industry term for residential loan originators, as mandated by the SAFE act Monetary policy - CORRECT ANSWER-policy that deals with interest rates and the supply of money in the US economy Fiscal Policy - CORRECT ANSWER-Relates to federal government Open-Market Operations - CORRECT ANSWER-Buying or sellin