Still need work question Flashcards
When does the process of title report take place?
A. After appraisal and before title policy insurance is issued.
B. After Title Policy before closing
C. After Closing
D. Three days if application
Answer
A
After appraisal and before title policy insurance is issued.
Which of the following is issued after closing? A. Title Report B. Title insurance binder C. Title insurance policy D. Title fee
Answer C.
The title insurance policy itself is issued after closing, and the title insurance premiumis a one-time closing cost to either the seller or borrower.
Which of the following has full purchase price mortgage coverage? A. Mortgagor title insurance B. Mortgagee Title insurance C. Title deed D. Title Premium
A. The mortgager title insurance covers the full purchase price of the mortgage
Which of the following cover only the loan amount? A. Mortgagor title insurance B. Mortgagee Title insurance C. Title deed D. Title Premium
B. The mortgagee title insurance covers the loan amount
Which of the following about title insurance is not true?
A. Either the seller or buyer (or both) will pay for the policies
B. The lender requires it, but does not pay for it.
C. If the lender requires it, they pay for it
D. Whoever pays the title insurance picks the title company.
C is not true.
The lender requires it, but not require to pay for it.
What is the process called with the title company investigate county records to verify that the title is clear (free of any defects or judgments) and the seller has the right to sell the property? A. Initially Appraisal B. Preliminary title report C. Title defect D. Title binder
Answer B
When a property not fully paid off is used as a collateral, what documents are required?
A. Deed, Mortgage Statement, homeowners insurance declarations, appraisal
B. Deed, title insurance, promissory note, appraisal
C. Deed, Mortgage Statement, homeowners insurance declarations, appraisal,notice of satisfaction
D. Deed, title insurance, notice of satisfaction promissory note, appraisal
Answer A.
On a mortgage collateral not fully paid off, a deed, mortgage statement or note, HOA declaration and appraisal is needed
When a property fully paid off is used as a collateral, what documents are required?
A. Deed, Mortgage Statement, homeowners insurance declarations, appraisal
B. Deed, title insurance, promissory note, appraisal
C. Deed, Notice of Satisfaction, homeowners insurance declarations, appraisal
D. Deed, title insurance, notice of satisfaction promissory note, appraisal
C
Which of the following is not true about Escrow analysis?
A. Determine the appropriate escrow target balances
B. It is done annually and sent to buyer
C. Compute the borrower’s monthly payments for the next escrow account computation year and any deposits needed to establish or maintain the account; and
D. Determine whether shortages, surpluses or deficiencies exist.
Answer C.
It’s the annual escrow that’s sent out yearly not the escrow analysis
On a 1003 application, which of the following can sign for an absent party? A. Power of Attorney B. Spouse C. Court Appointed Guardian D. Relative
Answer: C.
Court Appointed Guardian or POA only for those in military or incapacitated
Who prepares the Final 1003? Lender or mortgage broker? A. The MLO B. The Lender C. The Realtor D. The sponsor
B. The Final 1003 application is prepared at the time of loan closing and is prepared by the lender.
Which of the following contains the six items on the Type of mortgage and terms of mortgage section on a FNMA 1003?
A. Type of loan, agency and lender case number
B. A. Type of loan, agency and lender case number
C. Loan type, agency and lender case number, loan amount, interest rate, terms and amortization type
D. Loan type, agency and lender case number, loan amount, interest rate, terms and monthly payments
Answer C
In this section, the lender indicates:
- Type of loan applied
- Agency and Lender Case Numbers.
- Loan amount;
- Interest rate;
- Term in months
- Amortization Type
On FNMA 1003 borrower information section, which of the following are included?
A. Name, home phone, address, zip code, age, agent number
B. A. Name, home phone, address, zip code, age, MLO number
C. Name, Social Security Number, home phone, address age of the borrower, and number of years of school completed, and whether the borrower is a renter or owner.
D. Name of borrowers, phone, Social Security Number, home phone, age of the borrower, and new property address
Answer C
Full name of the primary borrower and co-Borrower, Social Security Number, home phone, age of the borrower, and number of years of school completed, Borrower’s present address, and whether the borrower is a renter or owner.
On the employment section of a FNMA, what type of information is requested of the borrower and co-Borrower?
A. Name, number address of employer, business type, position held, number of years c employed and monthly Income.
B. Name, number address of employer, business type, position held, number of years c employed and yearly Income.
C. Name, number address of employer, net gross, position held, number of years c employed and monthly Income.
D. A. Name, number address of employer, number of employees, position held, number of years c employed and monthly Income.
A
In Asset and Liability section on 1003, which of the following is listed as on the asset?
A. Cash Deposit, Bank name, Account Number and amount
B. Cash Deposit, Bank name, Account Number and how long account has been opened
C. Bank name, Account Number and amount
D. Bank name, Account Number and how long account has been opened
Answer A
Assets - Cash Deposit, Name of bank, Account number and Amount
In the Asset and Liability section on 1003, which of the following is listed as on the liability?
A. Name of company, balance and collateral
B. Name of company, account number and late payments
C. Name of company, Account Number, Monthly payments and months left to pay, Unpaid balance
D. Name of company, Account Number, Account age
Answer c
Liability- Name of company, Account Number, Monthly payments and months left to pay, Unpaid balance
*In the Details of Transaction section on 1003, which of the following is the information pulled from? A. Loan Estimate/Good Faith Estimate? B. Closing Disclosure C. HUD-1 D. FNMA 1008
Answer A
Which is true of a blanket authorization form?
A. The MLO can request the VOD be sent directly to the mortgage company
B. The applicant must sign this form to authorize his or her employer(s) to release the requested information.
C. The Blanket Authorization must be notarized
D. Lenders must attach a copy of the authorization form to each VOD it sends to the depository institutions in which the applicant has accounts.
D
A mortgagee applicant looking to purchase a first home and gave you a blank copy of the VOE, what should you do?
A. Have the borrower hand carry the form to the employer to fill out.
B. Have the borrower call the lender
C. Have the borrower give to his or her employer to fill and send back to lender
D. Deliver it yourself to the lender
Answer C.
The applicant must sign this form to authorize his or her employer(s) to release the requested information.
A mortgagee applicant looking to purchase a secondary home and gave you a blank copy of the VOE, what should you do?
A. Have the borrower hand carry the form to the employer to fill out or have the employer send to lender
B. Have the borrower call the lender
C. Have the borrower give to his or her employer to fill and send back to you to give the lender
D. Deliver it yourself to the lender
A.
A secondary home can be hand carry or employer to lender direct
Methods of verification can be provided by
A. The borrower, borrower’s employer, or by third-party employment verification vendor.
B. Only the borrowers employer
C. The borrower employer and third party
D. Third party verification is not legal
Answer A
which of the following is true when verifying employment?
A. Two year employment history for wage earners only
B. Two year employment history for contract worker only
C. 1099 for self employed
D. A two-year employment history is required for both wage earner and self-employed borrowers.
D
What document is acceptable as employment document provided by the borrower?
A. Recent two years W2, Tax returns and IRS Form 4506-T.
B. Paystubs, tax returns and Award letters
C. W2, bank statement and IRS Form 4506-T.
D. Recent two years W2, Paystub 30 day, and IRS Form 4506-T.
Answer. D
Remember this is proof of employment not proof of income
What type of document is acceptable document for verification of employment?
A. 30 day paystub that is computer-generated, typed by the borrower’s employer(s), or downloaded from the Internet
B. Last two most recent paystub that must be in company documents and never typed or downloaded
C. Most recent paystub that can be downloaded, typed or handwritten by employer
D. Paystub provided by third party
A