Application and Underwriting 2

The loan qualifying process involves all of the following, except:

(a) Credit (b) Capacity to repay (c) Commissions (d) Cash to close C

All of the following are examined by the underwriter, except:

(a) Credit (b) Capital (c) Parental income (d) Cash in reserve C

The underwriting qualifying ratio of 31/43 is applied with what loan program?

(a) FHA (b) VA (c) Conventional (d) Jumbo A

What is the function of FHA?

(a) Insure loans to protect lenders (b) Provide 100% financing (c) Be a profitable private company for investors (d) Provide financing for investment properties A

The following are advantages of an FHA loan, except:

(a) Low down payment (b) Flexible underwriting guidelines (c) Upfront mortgage insurance (d) Seller contribution of up to 6% of closing costs C

An underwriter performs all of the following, except:

(a) Setting the interest rate for the loan (b) Assessing borrowing capacity of borrowers (c) Verifying that borrowers meet program guidelines (d) Determining if compliance to federal requirements have been met A

The standard application for a mortgage loan is called:

(a) There is no standardized application form (b) Uniform Residential Loan Application (1003) (c) Uniform Underwriting and Transmittal Summary (1008) (d) Loan Estimate B

What is not a purpose of VA loans?

(a) To guarantee loans to lenders (b) To provide affordable housing in low income areas (c) Provide loans of 100% of the lower of CRV or price (d) Helping veterans finance homes B

The standard form provided to the underwriter that provides a snapshot of the borrower is called:

(a) Uniform Underwriting and Transmittal Summary (1008) (b) Uniform Residential Loan Application (1003) (c) There is no such form (d) Loan Estimate A

A borrower can use all of the following for a down payment on an FHA loan, except:

(a) Unverifiable cash with a proven history of cash only transactions (b) A gift from a parent that requires repayment (c) The sale of personal or real property (d) A gift from an employer that doesn't need to be paid back B