Champions Real Estate Finance Exam Questions And Answers |verified answers|2025
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Module
Champions Real Estate Finance
Institution
Champions Real Estate Finance
Champions Real Estate Finance Exam
Questions And Answers |verified
answers|2025
Collateral -Dependent Loans - ANSWER -A hard money loan is a specific type of
asset-based financing in which a borrower receives funds secured by the value of a
parcel of real estate.
Character - ANSWER -Is a ...
Champions Real Estate Finance Exam
Questions And Answers |verified
answers|2025
Collateral -Dependent Loans - ANSWER -A hard money loan is a specific type of
asset-based financing in which a borrower receives funds secured by the value of a
parcel of real estate.
Character - ANSWER -Is a measure of the willingness of a borrower to make on-time
payments. Credit character is revealed in the borrower's credit report.
Capacity - ANSWER -Is a measure of the borrower's ability to repay the debt, and is
demonstrated through current earnings and job stability.
Capital - ANSWER -Is the sum of all assets that the borrower has accumulated.
Collateral - ANSWER -Is something of value that can be pledged as security for
repayment.
Yield - ANSWER -Is the return that the investor recieves over the life of the loan. (Also
known as profit)
Originator - ANSWER -The process of creating a new mortgage loan, including all
steps taken by a lender to attract and qualify a borrower.
Mortgage Broker - ANSWER -Typically functions as a middleman between the
borrower and the lender, negotiating, selling or arranging loans to be delivered to larger
investors. At one time originated up to 80% of all mortgage loans. (Back on the rise)
Mortgage Banker - ANSWER -Entities which provide their own funds for the purpose of
providing mortgage financing, as opposed to commercial banks/savings associations.
(Held, or "Warehoused")
Correspondent Lender - ANSWER -Usually smaller in scale than mortgage bankers or
brokers, these lenders typically extend loans with their own funds, at their own risk.
Processing - ANSWER -Once application is complete the file moves into this phase.
Underwriting - ANSWER -The detailed process of evaluating a borrower's loan
application to determine the risk involved for the lender.
, Closing - ANSWER -The consummation of a real estate transaction in which all
appropriate documents are signed and the proceeds of the mortgage loan are then
disbursed by the lender.
Servicing - ANSWER -Includes collecting monthly payments, maintaining records of
payments and balances, collecting and paying taxes and insurance ( and managing
escrow and impound funds) remitting funds to the note holder, and following up on
delinquencies.
Supply and Demand - ANSWER -an economic concept that states that the price of a
good rises and falls depending on how many people want it and depending on how
much of the good is available.
Funding - ANSWER -The process of transferring funds to a title or escrow company for
disbursement
The Safe Act - ANSWER -Designed to enhance consumer protection and reduce fraud.
(Key component of HERA)
M1 - ANSWER -Is defined as the sum of currency held by the public and transaction
deposits at depository institutions.
M2 - ANSWER -Is defined as M1 plus saving deposits, small-denomination time
deposits (those issued in amounts of less than $100,000) and retail money market
mutual funds shares.
Fiat Money - ANSWER -Is currency that is not backed by any precious metals at all.
Monetary Policy - ANSWER -Is the maintenance of a stable money supply that
provides for growth in the economy while keeping inflation in. The federal reserves is
responsible for this policy in the United States.
Fiscal Policy - ANSWER -Federal Government spending. Approved by Congress. At
the treasury level, funds can be raised to pay for government spending by raising taxes
and increasing borrowing.
Federal Reserve (The Fed) - ANSWER -is the central bank of the United States
Monetary inflation - ANSWER -When there is an excess of money supply in the market.
Demand-pull inflation - ANSWER -When there is more money in the market and less
goods for sale.
Cost-push inflation - ANSWER -Occurs when the cost of production and offering
services increase, thereby causing manufacturers and tradespeople/vendors to rais
their prices accordingly.
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