Mortgage Loan Origination Flashcards
Which of the following would not be found on a credit report?
Payments made to creditors who do not send data to a repository
Bankruptcy information will remain on a consumer’s credit report for:
10 years
Joan johnson is a salesperson who is paid 100% commission. What type of documentation would you ask her to provide as proof of her income for loan qualification?
Tax returns for the past two years.
Which of the following best describes the LTV ratio?
IT is the ratio of the borrower’s principal loan balance to the appraised value of the property
Which of the follow real estate appraisal approaches considers the value of the property and any improvements made?
Cost approach
On which approach do appraisers place the most weight in reaching a value conclusion for conforming loans?
Sales comparison approach
Appraisals that use the sales comparison approach include which of the following?
comparison of value for three similar, recently sold properties
This is the term for changes in the value of a property made when comparing the features of a comparable property to a subject property.
Adjustment
Which document would an underwriter rely on for detailed information concerning the collateral for a mortgage loan?
The property appraisal
The Uniform Residential Appraisal Report is commonly known as the:
1004
An agreement a borrower makes with a lender allowing their interest rate to rise and fall with the market is called:
A float agreement
Mortgage insurance premium:
Is paid upfront on all FHA loans
Title insurance is required for all loans by the:
Lender
The DTI standard for an FHA loan is _________, and the standard for a VA loan is _________.
43%; 41%
In order for a home loan to be a qualified mortgage, the debt-to-income ratio may not exceed:
43%
Which of the following individuals would not be permitted to hold POA for a borrower?
The borrower’s mortgage loan originator
Why would a mortgage lender analyze a borrower’s credit capacity?
To determine if the borrower is financially capable of repaying the loan
The loan processor indicates that a 1003 cannot be submitted until the Government Monitoring section is completed. Which of the following would be provided in this section of the 1003?
Borrower’s race, gender and ethnicity
Which of the following is available to a borrower when the subject property is located in a flood zone and flood insurance is required?
FEMA’s National Flood Insurance Program
The cost approach to appraisal includes which of the following?
The value of the lot plus the replacement cost of the improvements
The disadvantage of holding an interest in property as a leasehold instead of holding it in fee simple is that:
Holding property as a leasehold does not give the consumer unconditional power of disposition of the property during his/her life and the ability to pass the property onto his/her heirs
Which of the following verifications of employment would be most acceptable to a lender that sell all of its loans to Fannie Mae?
A written verification of employment that the applicant’s employer mails directly to the lender
