Real Estate Finance I – CHAMPIONS EXAM The _________ is the central banking system of the United States. (a) Federal Deposit Insurance Company (b) The
... [Show More] U.S. Treasury (c) The U.S. Mint (d) The Federal Reserve The three major national credit reporting agencies are, Experian, Equifax and _________. (a) TransAtlantic (b) Union Pacific (c) Transtar (d) TransUnion Because it is a gift, the lender and/or the agent can provide gift funds to the borrower to be used as a down payment on an FHA loan. (a) True (b) False The two major purchasers of mortgages in the secondary market are: (a) Freddie Mac and Ginnie Mae (b) Fannie Mae and Freddie Mac (c) Ginne Mae and Fannie Mae (d) FHFA and HECM If a borrower is in default, the mortgage servicer may start the _________ process. (a) Forestalling (b) Closing (c) Casting (d) Foreclosure A collateral-dependent loan is also known as a __________. (a) Title loan (b) Cash advance (c) Hard money loan (d) Payment option loan Lenders bear less risk in making an FHA loan because the FHA: (a) Borrowers generally have higher than average income and credit (b) Requires a substantial down payment that minimizes risk (c) Is default insurance that will pay a claim to a lender in the event of default (d) Requires that the borrower have a higher credit score than other programs While some expenses may be paid in the form of a seller contribution or other means, the borrower actually must have the funds on hand for the: (a) Downpayment (b) Appraisal fee (c) Points (d) Brokerage fee FHA loans are available for: (a) Single family homes (b) Multifamily properties (c) Manufactured homes (d) All of the above An ARM that offers a fixed-rate period during the first years of the loan usually has an initial adjustment cap that is higher than the per adjustment cap. (a) True (b) False _________ is defined as the sum of currency held by the public and transaction deposits at depository institutions. (a) M1 (b) M2 (c) M3 (d) MI-5 The _________ is where borrowers and mortgage lenders come together to create and negotiate the terms of a mortgage transaction. (a) Money market (b) Credit market (c) Primary market (d) Secondary market A home was built 30 years ago, but is much like a home that is 10 years old, based upon its condition. In the appraisal, ten years is the home's ___________. (a) Useful life (b) Effective age (c) Chronological age (d) Depreciated age The process of making a lending decision is known as ___________. (a) Processing (b) Applying (c) Underwriting (d) Credit Scoring In the Loan Estimate, the Comparisons Table: (a) Displays offers from multiple lenders (b) Pro [Show Less]