Loans

Question 1

Fannie Mae/Freddie Mac Suitable Property

Answer 1

1-4 family unit principal residences
Single-family second homes
1-4 family investor properties (non-owner occupied)
Co-ops, condos, PDs, and leaseholds

Question 2

Common DTI Ratios

Answer 2

Conforming loans use a 28% front ratio and a 36% back ratio (28/36).
The FHA uses a 31% front ratio and 43% back ratio (31/43).
The VA only uses back ratio of 41% as a guideline.
Non-conforming loans have very flexible DTI ratios

Question 3

FannieMae AU

Answer 3

Desktop Underwriter

Desktop Originator

Question 4

FreddieMac AU

Answer 4

Loan Prospector

Question 5

FHA Appraisal Reporting Forms

Answer 5

1004-Uniform Residential Appraisal Report
1073-Individual Condo Unit Appraisal Report
1004C-Manufactured Home Appraisal Report
1025-Small Resid. Income Property Appraisal

Question 6

FHA Loan Programs

Answer 6

203(b) Residential
251 ARM
245(a) GPM
255 Home Equity Conversion (62yrs)
203(k) Rehabilitation
Title 1 Home Improvement
Energy Efficient Mortgage

Question 7

VA Benefits

Answer 7

No down payment - Certificate of Guaranty
Has Funding Fee by Law
No PMI
No prepayment penalty

Question 8

Automatic Authority

Answer 8

Authority of a lender to close the loan w/o prior VA approval

Question 9

Waivers in a Note

Answer 9

1 Presentment

2 Notice of Dishonor

Question 10

3 C’s of Credit

Answer 10

Capacity
Character
Collateral

Question 11

ARM Note Clauses

Answer 11

Interest Rate and Monthly Payment Changes

Payments

Question 12

A valid NOTE has 4 elements

Answer 12

Promise to pay
Payable on demand
Payable to order/bearer
Signed by Maker

Question 13

Title insurance

Answer 13

Abstract of Title
Chain of Title
Opinion of Title

Question 14

IRS 1098

Answer 14

Mortgage Interest Statement

Question 15

Strict Foreclosure only in:

Answer 15

Connecticut

Question 16

Notice of Default for FHA loans

Answer 16

Form 2068

Question 17

Accrued Interest

Answer 17

A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, but not yet paid or received.

Question 18

Amount of Prepayment penalty

Answer 18

Usually 6months

Question 19

GPM increases from

Answer 19

7.5 % to 12.5% of previous year pymt.

Question 20

FHA Benefits:

Answer 20

3.5% Down
580 FICO
up to 98.15% loan.

Question 21

Request for Tax Return

Answer 21

IRS Form

4506 / 4506-T