Documentation

Question 1

This form allows the lender to collect information about the borrower/property.

Answer 1

Uniform residential loan application

Question 2

This serves as protection for the creditor, motivation for the debtor – make sure terms of notes are fufilled and note is paid as agreed.

Answer 2

Promissory note

Question 3

This requires debtor to hypothecate property as condition of the loan (pledge property as collateral without giving up possession of the property).

Answer 3

Promissory note

Question 4

An estimate or opinion of value as of a certain date that is supported by objective data.

Answer 4

Appraisal or 1004

Question 5

This appraisal approach is often used in evaluating residential property. It also requires a minimum of three comparables.

Answer 5

Sales comparison approach

Question 6

This form is required to give the lender permission to request copies of federal tax returns.

Answer 6

4506 – T

Question 7

The borrower is called the trustor, the lender is the beneficiary who retains the note and deed of trust, in the trustee holds legal title to secure the property described and deed of trust subject to terms of trust for a wonder benefit.

Answer 7

Trust deeds or deed of trust

Question 8

Overtime and bonus pay must be consistently received for a period of how long in order to be used for income qualification?

Answer 8

Two years

Question 9

What percentage of ownership in the business is considered self-employment?

Answer 9

25%

Question 10

The rate lock is really shown on which document?

Answer 10

Loan estimate

Question 11

W-2 employees should have continuous employment for at least how many years in the same field?

Answer 11

2

Question 12

What percentage of income derived from a 1099 income is considered self-employment?

Answer 12

25%

Question 13

This note is typically accompanied by a security instrument.

Answer 13

Promissory note

Question 14

This document generally must contain the actual terms in costs of the transaction.

Answer 14

Closing disclosure

Question 15

A loan estimate can only be revised based on one of what three valid changes of circumstance?

Answer 15

1. An event that is beyond the control of a creditor or borrower, such as a natural disaster which increased settlement costs.
2. Information that was Nona or provided at the time of the application changed, such as interest rate increase loan terms or settlement service provider charges
3. New information regarding the borrower or the loan that the creditor did not rely on one supplying the loan estimate, such as the borrower becoming unemployed prior to closing.

Question 16

An appraisal must be recertified if it is how old the closing?

Answer 16

Four months or more

Question 17

If a revised loan estimate is needed, it will need to be mailed or given to the borrower no later than when?

Answer 17

Three business days after the creditor learns of the reason for the revision.

Question 18

This appraisal approach compares the property being appraised with other similar properties, comparables or comps, sold recently in the same market area, best for residential properties.

Answer 18

Sales comparison approach

Question 19

What five documents can be considered other documentation?

Answer 19

Appropriate W-2, original paystub’s, verification of employment, verification of deposit, verification of rent, verification of mortgage.

Question 20

This appraisal approach is used when evaluating the cost to replace property that was damaged due to natural disasters. It is also called the replacement cost approach.

Answer 20

Cost approach

Question 21

A final closing disclosure is delivered win?

Answer 21

At closing

Question 22

If the borrower doesn’t provide all data on this document during initial consultation, missing information must be provided at a later date, which will delay the loan process.

Answer 22

Uniform residential loan application

Question 23

According to the real estate settlement procedures act these two documents must be given out after settlement.

Answer 23

Annual escrow statement and servicing transfer statement

Question 24

Pay stubs are required for what amount of time?

Answer 24

30 days

Question 25

Non-numeric clerical error’s in tolerance violations trigger a new closing disclosure that must be delivered when?

Answer 25

Within 60 calendar days following loan closing

Question 26

This is signed by the borrower and evidence is a promise to pay (the borrowers obligation to repay the debt to the lender).

Answer 26

Promissory note

Question 27

This appraisal approach calculates the cost of the land, site improvements, the cost to build the structure on the land, and the cost of any depreciation to the property to reduce the property. The best for relatively new construction or four unusual or special purpose.

Answer 27

Cost approach

Question 28

Freddie Mac’s uniform residential loan application.

Answer 28

Form is 65

Question 29

The closing disclosure must be delivered to the borrower how many days prior to loan confirmation?

Answer 29

Three business days

Question 30

This appraisal approach estimates the value of the real estate by analyzing the revenue, or income, the property currently generates or could generate. That was widely used with commercial or investment properties.

Answer 30

Income approach

Question 31

Uniform residential appraisal report is known as what form?

Answer 31

1004

Question 32

What are the four other income considerations?

Answer 32

Retirement/pension, alimony or child support or maintenance, tax-free/public assistance income and rental income.

Question 33

And appraisal must be recertified if it is how old at closing?

Answer 33

Four months or more

Question 34

Instruments placed in specific financial interest in title to real property into hands of this interested third-party as security for payment of note.

Answer 34

Trust deeds or deed of trust

Question 35

An estimate or opinion of value as of a certain date that is supported by objective data.

Answer 35

Appraisal or 1004

Question 36

This gives the lender the right to declare entire loan balance due immediately because of borrower defaults or for violation of other contract provisions.

Answer 36

Acceleration clause

Question 37

Are you self-employed borrower needs what two tax returns for a minimum of two years?

Answer 37

Personal and corporate

Question 38

Trust deeds (nonjudicial foreclosure) and mortgages (judicial foreclosure) are examples of two types of what?

Answer 38

Security instruments

Question 39

According to the real estate settlement procedures act, these four documents are to be given out at or within three business days of the application.

Answer 39

1. Homeloan toolkit 2. Loan Estimate 3. Mortgage servicing disclosure statement 4. List of hud approved counselors

Question 40

This appraisal approach is used when evaluating the cost to replace property that was damaged due to natural disasters. It is also called the replacement cost approach.

Answer 40

Cost approach

Question 41

When is the closing disclosure has been delivered, can a borrower receive a revised loan estimate?

Answer 41

No

Question 42

According to the real estate settlement procedures act this disclosure must be given out three days prior to confirmation.

Answer 42

Closing disclosure

Question 43

Tax free/public assistance income may be “grossed up” by how much?

Answer 43

25%

Question 44

With the context of the deadline for providing the initial loan estimate, a business day is considered what?

Answer 44

Any day on which a creditor is open to the public for the purpose of conducting regular business.

Question 45

This appraisal approach calculates the cost of the land, site improvements, the cost to build the structure on the land, and the cost of any depreciation to the property to reduce the property. The best for relatively new construction or four unusual or special purpose.

Answer 45

Cost approach

Question 46

This gives the lender certain stated rights when there is a transfer of ownership in the property a.k.a. due on sale clause.

Answer 46

Alienation clause

Question 47

According to the real estate settlement procedures act this document must be given out within 45 days of closing.

Answer 47

Initial escrow statement

Question 48

Trust deeds (nonjudicial foreclosure) in mortgages (judicial foreclosure) are examples of two types of what?

Answer 48

Security instruments

Question 49

Self-employed borrowers needs personal and corporate tax returns for a minimum of what time?

Answer 49

Two years

Question 50

Who is responsible for providing the closing disclosure to the seller?

Answer 50

Settlement agent/title agent

Question 51

How long is an appraisal valid for?

Answer 51

12 Months

Question 52

How long do you lenders have to refund any excess of variations between the loan estimate in the closing disclosure?

Answer 52

60 days

Question 53

This appraisal approach is often used in evaluating residential property. It also requires a minimum of three comparables and is usually called the market approach.

Answer 53

Sales comparison approach

Question 54

When considering retirement or pension income, how long must take continue beyond the application date?

Answer 54

Three years

Question 55

How long is an appraisal valid for?

Answer 55

12 months

Question 56

This is signed by the borrower and creates a voluntary lien on the property for the security payment of debts, evidenced by the promissory note. The borrower is called the mortgagor and the lender is the mortgagee who retains the note in deed of trust.

Answer 56

Mortgage

Question 57

How long must a loan estimate be kept for?

Answer 57

Three years

Question 58

According to the truth in lending act, what is the definition of a business day?

Answer 58

Any day except Sunday and federal holidays.

Question 59

Fannie Mae’s uniform residential loan application.

Answer 59

Form 1003

Question 60

How long must the closing disclosure be kept for?

Answer 60

Five years

Question 61

What is the business day definition when receiving the closing disclosure?

Answer 61

Any day except Sunday and federal holidays

Question 62

This appraisal approach estimates the value of the real estate by analyzing the revenue, or income, the property currently generates or could generate. That was widely used with commercial investment properties.

Answer 62

Income approach

Question 63

This document is signed by the borrower and evidences a promise to pay (the borrowers obligation to repay the debt to the lender).

Answer 63

promissory note

Question 64

According to the real estate settlement procedures act, these two documents must be given out before settlement.

Answer 64

Affiliated business arrangement disclosure and closing disclosure

Question 65

According to the real estate settlement procedures act, these two documents must be given out at settlement.

Answer 65

Finalize the closing disclosure and initial escrow statement

Question 66

If a new revised loan estimate is required because of a change to circumstance, it must be disclosed and received by the borrower when?

Answer 66

Four days prior to consummation of the loan

Question 67

Who is responsible for providing the closing disclosure to the borrower?

Answer 67

Creditor/lender

Question 68

Rental income is calculated at what percent to allow for vacancy loss?

Answer 68

75%

Question 69

What is the business day definition when receiving a revised loan estimate?

Answer 69

Any day except Sunday and federal holidays

Question 70

Document designed to detail borrowers history, trends, and attitude to predict future loan repayment behavior.

Answer 70

Loan application

Question 71

Another term for market approach.

Answer 71

Sales comparison approach