Loan application and Appraisal

Question 1

What is the name of the loan application

Answer 1

PG 47 URLA 1003

Question 2

What type of mortgage for 1003

Answer 2

VA, FHA USDA, Conventional

Question 3

What is the purpose of loans for 1003

Answer 3

Purchase, refinance, construction , construction to perm

Question 4

You may refer to the borrower as all of the following except?
A. Separated
B. Unmarried
C. Married
D. Single

Answer 4

d.

Question 5

What is the min # of years employment and residence history needed on a 1003?

Answer 5

2 years

Question 6

What info is collected in the assets and liability section on 1003

Answer 6

name of creditor/monthly payment / unpaid balance

Question 7

What is significance of having MLO sign the 1003

Answer 7

Attest to truthfulness of the document

Question 8

What are the 4 ways to take an application?

Answer 8

face to face , internet/email, mail/fax, phone

Question 9

What is section 8 of 1003?

Answer 9

Where govt. monitoring information is collected - ethnicity , race and sex

Question 10

If a borrower chooses not to provide the Gov’t monitoring answers, what is the MLO’s responsibility?

Answer 10

If taken face to face , mlo must write the words visual observation

Question 11

If an MLO starts an application and then leaves employment and the lender reassigns the loan to a different MLO. What should the new MLO do?
a.) verify the information is correct by telephone
b.) verify the information via email
c.) start a new application
d.) continue with the old application

Answer 11

c.

Question 12

What is URAR 1004

Answer 12

Uniform Residential appraisal report

Question 13

What does an appraisal do

Answer 13

Provides estimate of property value and used when making an underwriting decision

Question 14

What is subject property

Answer 14

What we are putting loan on and we compare the property with 3 others

Question 15

Sales comparison approach - appraisal

Answer 15

Most common

Question 16

Cost approach - appraisal

Answer 16

Used for new construction

Question 17

Income approach - appraisal

Answer 17

Used for investment or commerical

Question 18

What form does an appraiser use to certify construction is complete?

Answer 18

442 or 1004d

Question 19

How many properties must be in sales comparison approach

Answer 19

3 comparable properties within 1 mile

Question 20

What happens if subject property is superior

Answer 20

We add value to comparable

Question 21

What happens if subject property is inferior

Answer 21

We subtract from the comparable

Question 22

What the max for gross adjustment on appraisal

Answer 22

25%

Question 23

What is max for net adjustment appraisal

Answer 23

15%

Question 24

What is max for single line adjustment - appraisal

Answer 24

10%

Question 25

The market conditions addendum required in conjunction with the appraisal report lists all of the following information except?
a.) number of foreclosures in the market
b.) Number of rentals in the market
c.) current inventory of homes for sale
d.) description of improvements to property

Answer 25

D.
market condition addendum - what is happening in the market?

Question 26

What is market condition addendum

Answer 26

Lets lender know what is going on in the market where house is located