Mortgage Loan Origination Activities Flashcards
The mortgagee is the:
Lender.
An insurance policy that protects the lender against potential loss caused by the borrower’s mortgage payment default is called:
Mortgage Insurance.
An appraisal approach that is determined by prices paid for similar properties in the neighborhood is called:
Comparable Approach.
Mortgage Loan Originator Rob Macioce has ordered a credit report for a young married couple who have applied jointly for a mortgage loan. The credit scores of the applicants are: Borrower – 725, 705, 753 Co-borrower – 625, 685, 667 Based on the above information, per FNMA conforming guidelines, what is the representative credit score for this couple?
667
The FNMA form “1003” is the nickname of which of the following mortgage industry document?
Uniform Residential Loan Application
What is included in the 1st ratio (front ratio) calculation?
Hazard insurance premiums
Ms. Victoria receives child support payments of $2000 each month. Per FNMA guidelines, what amount of income should be allowed for monthly qualifying income?
$2,500
Liquid assets are cash on hand or any tangible or intangible item that can be converted quickly and easily into cash, typically without losing much of their value. Liquid assets typical include all the following except:
Equity in a Real Estate investment
Private mortgage insurance (PMI) is not required when:
The loan has been paid down to less than 78% of the property’s original purchase price.
The borrower is purchasing a home for $534,500.00. He is requesting an 80% LTV. The interest rate is 5.875% fixed rate for 15 years. The closing date is June 23. How much pre-paid interest will the borrower have to pay at closing? (365-day calendar).
$550.60
Flood insurance coverage is required for all residential buildings on the mortgaged premises if any part of the structure is located within a Special Flood Hazard Area (SFHA). Which of the following flood zones require flood insurance?
Zones A or V
What is the written promise by the borrower to pay the debt owed to the lender under mutually agreed conditions?
Promissory Note
The net and gross adjustment theory analyzes each of the dollar figure adjustments made in the entire appraisal and adjustments made of the comps as well. Guidelines vary, but many lenders prefer that net adjustments not exceed:
15%
A mortgage company will approve an 80% financing on a sales price of $220,000. Taxes per year have been estimated to be $6450; the hazard insurance on the loan is 3/4% per year based on a replacement cost of $220,000, and the monthly P&I payment has been calculated to be $1,056. What monthly salary must the applicant make to qualify at 28%?
$6,182.14
The borrower is paid $12.50 per hour and works a 37.5-hour week. Utilizing the FNMA/FHLMC housing expense ratio, what is the maximum PITIA this borrower qualifies for?
$568.75