Credit Reports Flashcards

1
Q

What is CRA

A

Credit reporting agency supply credit reports

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2
Q

What is In file credit report

A

report from one credit agency

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3
Q

What is tri merged credit report

A

all 3 agencies on one report

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4
Q

What is 3rd type of credit report

A

factual data report

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5
Q

All of the following would be found in a credit report except?
a.) Judgments
b.) Collections
c.) foreclosures
d.) utility records

A

D.

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6
Q

How long do public records show on a credit report

A

7 years

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7
Q

How long does chapter 7 bankruptcy stay on credit report

A

10 years

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8
Q

What is chapter 7 bankruptcy

A

personal - wipes out all debts

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9
Q

What is chapter 13 bankruptcy

A

personal pay back creditors through court

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10
Q

What is chapter 11 bankruptcy

A

Business bankruptcy

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11
Q

How long does chapter 13 stay on report

A

7 years

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12
Q

How long does chapter 11 Bankruptcy stay on a credit report
.A. 7 years
B. 10 years
C. Chapter 11 is not reported on all credit reports
D. Until it is discharged

A

C.

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13
Q

What is the credit score range?

A

300 -850

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14
Q

What is the purpose of credit score

A

Predicts whether or not the borrower will default based on past history

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15
Q

All of the following documents would show the Name of Company and MLO’s NMLS number except
A. Credit Report
B. Loan estimate
26
C. 1003
D. Closing disclosure

A

A.

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16
Q

What is VOE

A

Verficiation of employment

17
Q

What is VOR

A

Verification of rent

18
Q

What is VOM

A

Verification of mortgage
- payoffs not provided on form

19
Q

What is VOD

A

Verification OF deposit

20
Q

What is VOG

A

Verification of gift

21
Q

What is VVOE

A

Verbal verification of employment

22
Q

3 things to tell client when meeting them

A

dont quit job, do not buy anything and continue to make your monthly payments

23
Q

You can’t count these items as income unless they meet guidelines

A
  1. parttime/overtime/bonuses/self employment / rental income - 2 years
24
Q

Does a raise count as income

A

Yes if it is given prior to a loan closing

25
Q

Which of the following types of income cannot be used or is reason to decline an applicant for a mortgage?
A. Annuity
B Part time income last 24 months
C. Social security and or public income source
D. Intermittent or seasonal income

A

D.

26
Q

What is child support and alimony counted as?

A

Debt

27
Q

A borrower who is employed as a waiter applied for a mortgage loan. He told the MLO that he did not report all his tip income on his tax return. What step should the MLO take?
a.) Contact the employer to verify the tip income
b.) Tell the borrower to re-do his taxes correctly
c.) If sufficient use the income on the tax return
d.) Use the tip income anyway

A

C.

28
Q

How much in % does rental income count as income

A

75%

29
Q

How much does fixed income count?

A

Gross up to 125%

30
Q

What is needed to prove business income?

A

25%

31
Q

How do you calculate income

A

Calculated to monthly amt to determine ratio
ex: Hourly wage x # of hours x 52 weeks / 12 months = Monthly Income
Bi - Weekly : Amount per pay period x 26 / 12 = Monthly Income
Bi Monthly: (1st and the 15th) pay per period x 2 = Monthly Income