REAL ESTATE FINANCE CHAMPIONS NEWEST COMPLETE 200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

1 | P a g e REAL ESTATE FINANCE CHAMPIONS NEWEST 2024- 2025 COMPLETE 200 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ The Community Reinvestment Act, enacted in _____ ensures that banks serve the needs of the community in which they were chartered - ANSWER- 1977 Secondary Mortgage Market - ANSWER- Encompasses the purchase and sale of existing mortgages to investors Disintermediation - ANSWER- the act of moving funds from one investment arena to another REMIC - ANSWER- holds mortgages in trust for the benefit of investors Conforming Loan - ANSWER- Adheres to Fannie Mae and Freddie Mac requirement for purchase of a mortgage 2 | P a g e Yield - ANSWER- return on an investment Redlining - ANSWER- The practice of refusing to provide financing in a particular area because of location SML - ANSWER- Responsible for the chartering, regulation and supervision of Texas thrift industry TDHCA - ANSWER- Responsible for the regulation of the Texas manufactured housing industry SAFE Act - ANSWER- Designed to enhance consumer protection and reduce fraud RMLO - ANSWER- The industry term for residential loan originators, as mandated by the SAFE act Monetary policy - ANSWER- policy that deals with interest rates and the supply of money in the US economy Fiscal Policy - ANSWER- Relates to federal government 3 | P a g e Open-Market Operations - ANSWER- Buying or selling government securities by the federal reserve Discount Rate - ANSWER- Set by the board of directors of the Federal Reserve Banks subject to approval by the Board of Governors Loan Processing - ANSWER- The process of collecting information about a borrower in order to build a loan file that will be used to make an underwriting decisions Underwriting - ANSWER- The process of evaluating a borrowers loan application to determine the risk involved for the lender Funding - ANSWER- The process of transferring funds to a title or escrow company for disbursement Servicing - ANSWER- sending monthly payments statements and collecting monthly payments, maintaining payment records and following up on delinquencies Origination - ANSWER- the process of creating a new mortgage loan 4 | P a g e A tax lien can be classified as an involuntary lien and a ______ lien - ANSWER- statutory lien An easement for ingress and egress is known as an _______ - ANSWER- encumbrance Which of the following types of liens is one that is freely given, usually as collateral for a loan? - ANSWER- Voluntary lien Real Estate Owned (REO) - ANSWER- lending institution assest classification for property obtained through a foreclosure Foreclosure - ANSWER- The legal procedure where by the secured property may be sold to satisfy the unpaid promissory note Contract for deed - ANSWER- a sales contract in which the buyer agrees to make regular payments to the sales for equitable title general lien - ANSWER- debt instrument attaches to all the property of the debtor not exempt from forced sale