Ultimate Test Flashcards
When an underwriter makes a determination on a file other than approve, how long before a status needs to be sent to the borrower?
Immediately or 30 days from last notice to borrower
When should a borrower receive a copy of their appraisal?
immediately
What disclosure explains terminology of a purchase transaction settlement cost?
SCIB
Out of the following what fees are not included in the APR
Title insurance and Seller paid points
What are the two categories that consist of the “prepaid items” on total settlement charges
Taxes/insurance and Per Diem Interest
What additional disclosure is needed with an ARM loan
Charm
What is the major difference between an FHA Loan and VA loan?
VA loans do not require a down payment and FHA loans require a down payment
What is the purpose of FNMA in the mortgage marketplace?
Purchase loans from lenders in the secondary market
Which “C” measures the ability to repay on a loan?
Capacity
A house was built 10 years ago. Which type of appraisal approach would be used to establish value
Market approach
What determines position of liens?
Date and Recording
FNMA and FHLMC securitize what type of loans?
Conforming loans
What is the term that indicates that something may be on title to prevent the transfer of a clear title?
Encumbrance
When must the ABA go out?
At time of referral
What is the primary purpose for the Red Flag Rule regarding identity theft?
Identify methods that identity theft can occur
What has happened if there is a “Fraud Alert” on a credit report?
The customer called the CRA and put a fraud alert on their credit profile
What information is not included in the “liabilities” section of the 1003 for each account?
Payment History
What does HPA stand for and why is this important to lenders and homeowners?
Homeowner Protection Act: To eliminate PMI when the loan comes to fruition
Select which term identifies the amount of a VA guarantee
Entitlement
When is a Reserve Annuity payment used?
Used to pay out HECM’s
Who maps out flood zones for an existing property or new development (based on the 100 year flood rule)
FEMA
Who checks public records to see if a property is located in a mapped out flood zone?
Appraiser
How long should you keep mortgage loan records under ECOA?
25 months
If you ask to put your number on the DNC registry, how long is it good for?
Forever
A ___ cushion is allowed above what is required under section 10 of RESPA?
2 months
When are escrow accounts reviewed and what amount of average would cause a refund to the borrower?
Annually, above $50
If a borrower was discriminated against and ECOA laws were compromised, how many years does that borrower need to take action on a civil law suit against the broker?
Two years
What is used to determine the value of a home when doing a VA loan?
Certificate of reasonable value
