Lesson 8 Quiz: Mortgage Loan Origination, Processing, and Servicing - Part 2

The _______ is responsible for processing the loan application in a timely manner, for ordering the credit reports and property appraisal, and for preparing the promissory note, mortgage document, as well as all disclosure documents required under federal or state law.

lender

Compensating factors may be taken into consideration by the loan underwriter if an applicant's front end ratio exceeds _______%.

31

_______ the borrower is an important initial step in the loan origination process that follows a series of steps focused largely on determining how much the borrower can afford to borrow, and how much the lender can expect to lend with a reliably measured prospect of being paid back.

Qualifying

The five major elements of mortgage lending include all of the following EXCEPT:

Qualifying the broker

_______ was enacted with the intention of ensuring full and fair disclosure of all costs involved in real estate transaction prior to, and at the closing.

RESPA

_______ insurance policies can be written to protect both the owners (mortgagors) and lenders (mortgagees).

Title

__________ are guaranteed by the federal government. This program was created by the GI Bill in 1944 as a gesture of national gratitude for military personnel and includes a home buying loan program that required virtually no down payment for qualified veteran applicants.

VA Loans

The _______ is responsible for obtaining a title opinion and securing the necessary title insurance if required by the lender.

buyer

The alternative to a fact-to-face closing is an _______ closing, where neither party nor their representatives are required to be physically present to complete the transaction.

escrow