Mortgage Loan Origination Activities

Question 1

Your borrower does not wish to complete the demographics questions in the government monitoring section of the 1003. What should you Do?

Answer 1

Complete the section based on a visual observation of the borrower

Question 2

Which of the following pieces of personal information is a borrower asked to provide voluntarily on the loan application?

Answer 2

Race and sex

Question 3

Which of the following would not be found on a credit report?

Answer 3

Payment made to creditor who do not send data to a repository

Question 4

Appraisers most commonly use which of the following appraisal methods when determining value for conforming loans?

Answer 4

Sales comparison approach

Question 5

Which of the following real estate appraisal approaches considers the replacement value of the propery

Answer 5

Cost apprach

Question 6

Which of the following best describes LTV ratios?

Answer 6

It is the ratio of the borrower’s principal loan balance to the appraisal value of the property

Question 7

A borrower back end ratio includes which of the following?

Answer 7

The total amount of Debt carried by the consumer

Question 8

Why would you analyze a borrower’s capacity?

Answer 8

To determine id the borrower is financially capable of repaying the loans

Question 9

Your processor indicates that a 1003 cannot be submitted until the Government monitoring section is completed, Choose on category of information that would be provided in this section of the 1003:

Answer 9

Race, gender, ethnicity of the borrower

Question 10

Why would a borrower pay discounts points in conjunction with his/her loan transaction?

Answer 10

They would change the note rate

Question 11

Which of the following provision is available to a borrower when the subject property is located in a flood zone and flood insurance is required?

Answer 11

FEMA’s National Flood Insurance Program

Question 12

Comparable properties used in the market approach appraisal should be located within ___ of the subject area?

Answer 12

One Mile

Question 13

Appraisals which use the sales comparison approach include which of the following?

Answer 13

Comparison of value for three similar, recently sold properties

Question 14

The cost approach appraisal includes which of the following?

Answer 14

The value of the lot plus the replacement cost of the improvements

Question 15

According to conforming guidelines an appraiser may make net adjustment to comparables up to __ in a residential appraiser?

Answer 15

15%

Question 16

The market conditions addendum required in conjunction with the uniform residential appraisal report includes all of the following except:

Answer 16

Sellers concession

Question 17

Which of the following individuals typically determines a loan approval based on lender guidelines?

Answer 17

Underwriter

Question 18

In the underwriter process, the presence of derogatory information on a borrower’s credit report may require ___ in order for the loan to be approved

Answer 18

Strong compensation factors