REAL ESTATE FINANCE CHAMPIONS EXAM NEWEST 2024 ACTUAL EX
COMPLETE 180 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS)
Study online at https://quizlet.com/_fu07am
1. Loan-to-Value The percentage of the lesser of the appraised value or
Ratio (LTV) sales price that the lender will lend.
ex: If a borrower is approved for an 80% loan, it means
that the lender will loan up to 80% of the sales price or
appraised value, whichever is lower.
2. Package Mort- Includes both real and personal property ( fixtures and
gage furnishings)
3. Blanket Mort- Covers more than one piece of property.
gage
4. Wraparound Method of financing which preserves the low, existing
Mortgage interest rate on the original note.
5. Open-End Mort- Permits additional borrowing on the same note. This is
gage sometimes called a credit card mortgage or a home eq-
uity line of credit - HELOC.
6. Budget Mort- The monthly house payment includes principal, interest,
gage taxes and insurance (known as PITI)
7. Collateral -De- A hard money loan is a specific type of asset-based
pendent Loans financing in which a borrower receives funds secured by
the value of a parcel of real estate.
8. Character Is a measure of the willingness of a borrower to make
on-time payments. Credit character is revealed in the
borrower's credit report.
9. Capacity Is a measure of the borrower's ability to repay the debt,
and is demonstrated through current earnings and job
stability.
10. Capital Is the sum of all assets that the borrower has accumulat-
ed.
, REAL ESTATE FINANCE CHAMPIONS EXAM NEWEST 2024 ACTUAL EX
COMPLETE 180 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS)
Study online at https://quizlet.com/_fu07am
11. Collateral Is something of value that can be pledged as security for
repayment.
12. Yield Is the return that the investor recieves over the life of the
loan. (Also known as profit)
13. Originator The process of creating a new mortgage loan, including
all steps taken by a lender to attract and qualify a borrow-
er.
14. Mortgage Broker 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)
15. Mortgage Banker Entities which provide their own funds for the purpose of
providing mortgage financing, as opposed to commercial
banks/savings associations. (Held, or "Warehoused")
16. Correspondent Usually smaller in scale than mortgage bankers or bro-
Lender kers, these lenders typically extend loans with their own
funds, at their own risk.
17. Processing Once application is complete the file moves into this
phase.
18. Underwriting The detailed process of evaluating a borrower's loan ap-
plication to determine the risk involved for the lender.
19. Closing 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.
20. Servicing 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.
, REAL ESTATE FINANCE CHAMPIONS EXAM NEWEST 2024 ACTUAL EX
COMPLETE 180 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS)
Study online at https://quizlet.com/_fu07am
21. Supply and De- an economic concept that states that the price of a good
mand rises and falls depending on how many people want it and
depending on how much of the good is available.
22. Funding The process of transferring funds to a title or escrow
company for disbursement
23. The Safe Act Designed to enhance consumer protection and reduce
fraud. (Key component of HERA)
24. M1 Is defined as the sum of currency held by the public and
transaction deposits at depository institutions.
25. M2 Is defined as M1 plus saving deposits, small-denomina-
tion time deposits (those issued in amounts of less than
$100,000) and retail money market mutual funds shares.
26. Fiat Money Is currency that is not backed by any precious metals at
all.
27. Monetary Policy 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.
28. Fiscal Policy Federal Government spending. Approved by Congress. At
the treasury level, funds can be raised to pay for govern-
ment spending by raising taxes and increasing borrowing.
29. Federal Reserve is the central bank of the United States
(The Fed)
30. Monetary infla- When there is an excess of money supply in the market.
tion
31. Demand-pull in- When there is more money in the market and less goods
flation for sale.
32.
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