Banking

Cash saved at home is allowed if the borrowers can adequately demonstrate the ability to do so and have not show a .....

true

CAIVRS (Credit alert verification reporting system)

used to screen all borrowers to see if they are delinquent or have had a claim paid on government insured loan within the last three years (except on streamline refinances)

Installment debts with less than ________ months are not counted for qualifying purposes unless the payment will affect the borrowers ability to pay the mortgage during the months immediately after the closing

10

FHA chapter 7 bankruptcy requires _________ years to pass after discharge for a borrower to be eligible

2

What is the maximum seller contribution allowed for an investment property at 80% LTV (FNMA/FHLMC)

2%

If a veteran is obtaining an IRRRL loan and the original term of his existing VA loan was 10 years, what is the maximum term of the new loan

20 Years. (Original term of existing loan + 10 years)

How much is required to put down on agency products?

3.5%?

How long does a consumer have to shop for a mortgage without the credit inquiries affecting their score

30 days

FHA cash out refinance maximum qualifying ratios

31/43

Maximum allowable ratios for a owner occupant while using a non occupant co borrower per FHLMC

35/43

The maximum allowable ratios for an owner occupant when using a non occupant co borrower per (FHLMC guidelines

35/43

Minimum age requirement for a reverse mortgage

62

How many days must a borrower wait to close once they receive their initial disclosure

7

The maximum LTV for an FHA cash out refinance

85%

DU (FNMA) underwriting findings

Approve/Eligible: The credit profile is approved and the loan is eligible for delivery to Fannie Mae. Approve/Ineligible: The credit profile is approved, but the loan ins not eligible for delivery to Fannie Mae.

Which of the following is included when calculating debt-to-income rations on a VA loan

Childcare Utilities HOA dues Credit cards None of the Above All of the above??

Which type of letter would be best for a borrower who has made an offer on a property and has provided the bank statement and W-2's.

Commitment letter

Identify the situation that can occur at closing that may result in the borrower receiving cash on a IRRRL

Computational errors Changes in Final payoff figures Refund of upfront fees paid for the appraisal of credit report Reimbursement for the cost of energy efficient improvements. A,B,C

Who needs to be licensed through the National Mortgage Licensing System (NMLS)?

Contract Underwriter and processors Mortgage loan originators Persons of entity selling timeshares A,B

Gross rent may be considered effective income when an applicant is planning to rent their current residence after closing the purchase of their new home

False

HARP loans are designed to help homeowners who are delinquent on their mortgage payments and not able to repay.... in their home value

False

If a borrower is being relocated and needs to close in 30 days, and their spouse will not be moving for 3 months, the spouses income can still be used to qualify.

False

If a borrower tells you about a liability that is not listed on the credit report, it doesn't need to be included in the....

False

If a student loan payment is deferred, it does not have to be included in the borrowers ratios (FHLMC/FNMA)

False

If a veteran currently owns a VA guaranteed loan which they will be selling and the COE and 26-1880 reflect this prior usage, you need to have the COE updated prior to closing on any new purchase.

False

Income from commissions or self employment is considered stable when the applicant has obtained such income for at least 2 years. Less than one year can rarely qualify

False

Income or losses derived from partnerships can be located on Schedule K-1 of a borrowers personal tax return.

False

Income or losses derived from partnerships can be located on Schedule K-1 of a borrowers personal tax returns

False

It is acceptable to order a new case number and new appraisal if the borrower/seller do not agree with the pro...

False

ON a conventional loan, a borrower may qualify on a 2/1 buy down at the start rate

False

On an FHA loan the upfront MIP should be included when calculating cash to close

False

Permanent and non permanent resident aliens are eligible for mortgage financing, but typically not under the same terms as a citizen

False

The borrower must have 5% or their own funds when putting down 15% down payment on a primary residence

False

The fully indexed rate is calculated on an ARM by adding the T-Bill caps together

False

Trailing spouse income can be used for qualifying income

False

VA sets their own maximum loan limits

False

When calculating a cash out refinance, the funding fee is included in the maximum allowable LTV of 100%

False

YTD pays stubs will be required from a borrower that is self-employed (Schedule C)

False

YTD paystubs will be required from a borrower that is self-employed (schedule C)

False

with 5/1 arms, you typically qualify based on the START rate

False

Chapter 7 Bankruptcies must be discharged for a minimum of three years.

False (4 years)

Which of the following allowances may be included in effective income?

Flight pay Rations Combat pay Car allowances A,B,C

Choose the factor below that cane used to offset severely derogatory credit

None of the above or 20 years same job

Which agency allows a borrower to qualify at the start rate for qualifying on a fixed rate with Buydown?

Not FNMA FHA?

During what stage is the appraisal typically received?

Processing?

Unreimbursed business expenses _______________ the borrowers gross income

Subtracted from

HomeOne will allow up to 97% LTV for a primary residence, 1-unit purchase if at least one of the borrowers has not owned a home in the last 3 years. A borrower who has not owned a home in the last three years is considered a first-time home buyer under HomeOne

TRUE

Which of the following statements are false?

The "end" lender in a mortgage bankers transaction is the Wholesale Lender. The lender that buys loans from a mortgage broker is called a Corresponent lender. The lender that buys loans from a mortgage banker is called correspondent lender. A, B

Rate Adjustments listed on a Mortgage Insurance company's rate card are added to or subtracted from the monthly MI factor

True

Residual income is the amount of income available for family support after taxes and social security expense have been subtracted from the gross income and after PITI and other long-term debt has been paid.

True

The ATR and QM rules state that lenders must make a reasonable, good faith determination of a borrower's ability to repay before consumption of the mortgage loan

True

The Correspondent Lender is the end lender in a mortgage bankers transaction

True

There is no minimum credit score needed to run/submit both HomeOne and HomePossible through an automated underwriting system

True

Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax return

True

When adjusting a 1 year arm with 2/6 caps, the rate at the beginning of year 2 will be determined by the start rate or fully indexed rate, whichever is less

True

When calculating a borrowers income, unreimbursed business expenses should be subtracted from income.

True

When considering a FHLMC loan, the maximum allowable ratios for the owner occupant when using a non occupancy residency is 35/43

True

When considering a FHLMC loan, the maximum allowable ratios for the owner occupant when using a non occupant co borrower are 35/43

True

You have an existing house on a septic system with public sewer available. If the septic system is functioning....

True

Maximum for FHA varies by county

True?

A tax service is a non allowable fee by the FHA

True??

Who is most likely to require that a 1040 tax return form be signed at closing?

Underwriter?

When taking application for a VA loan on new construction, it is very important to order the appraisal

When the house is complete

Redisclosure of the Truth in lending is required if the APR changes more than ________% of a fixed rate

.125%

On an ARM rediclosure of the Truth in Lending is required if the APR changes more than _________%

.25%

A partners percentage of ownership and earnings can be located on Schedule E or Schedule E part II of their personal tax returns.

False

A veteran has the ability to transfer a portion of their entitlement to another veteran

False

Condos that meet the FNMA/FHLMC warrantable criteria are acceptable under VA

False

FHA requires different ratio standards when non-occupant co-borrower is involved in a transaction

False

For conventional loans, you do not have to count deferred student loan payments in the borrower's DTI.

False

A program description contains the summary of eligibility requirements for a loan to be sold to a specific lender/investor

True

A veteran and their spouse may jointly apply for a VA loan regardless if the spouse is a veteran

True

A wholesale lender is the lender that buys loans from a mortgage broker

True

Borrowers who do not have an established credit history may still qualify with sufficient credit references

True

Connection to public or community is mandatory ONLY if required by the local building, planning, or health authorities. (VA)

True

DU does not consider non occupant income as qualifying income

True

Depreciation should be added to a borrower's income who owns several investment properties

True

Depreciation should be added to a borrowers income who owns several investment property

True

Except for high cost areas, the maximum loan amount on a 1 unit sing family residency is 453,100

True

FHA case numbers are tied to the property, not the borrower

True

FHA guidelines require 3 years to have passed since foreclosure deed in lieu, or short sale before.....

True

FHLMC qualifying rations are 28/36

True

FNMA and FHLMC are full backed by the U.S. government

True

If the lender obtains a credit report at a cost of $30, the lender cannot charge $35 even if they believe a $5 handling charge is acceptable

True

A HUD consultant would not be required for an aha 203(K) standard program

False

A borrower may combine a 1st and 2nd mortgage together into one new loan using HARP.

False

A loan officer can locate the summary of eligibility requirements for a loan to be...... lender specs

False

A loan officer can locate the summary of the eligibility requirements for a loan to be sold to a specific lender/investor in lender specs

False

A HELOC second mortgage may or may not be fully disbursed at closing. Typical, it has a variable interest rate with an interest only payment. There is designated draw period of repayment period.

True

A borrower must qualify at the note rate on a temporary buy down, not the start rate

True

A borrower that is self employed (Schedule C) will typically not be required to provide YTD paystubs

True

A borrowers income is a factor considered when determining the principal limit (maximum loan amount) for a reverse mortgage

false

Commission income will be averaged from year to date pay stubs

false

Earnest money must be from an eligible source of borrowers funds and verified with a copy of borrower's canceled check, bank statement, or VOD

false

FNMA and FHLMC issue a list of approved appraisers and allow the lender to choose the appraiser from the list

false

For automobile allowances, you may add the entire amount reported on the borrowers tax returns to their monthly income

false

It is the ultimate responsibility of the appraiser to insure that the appraisal is prepared to agency standards

false

Revolving debt with less than 10 months remaining are not counted in the qualifying ratios

false

The builder must provide an appraisal certificate to the mortgage company on an FHA new construction loan prior to closing

false

Unemployment income can not be used as qualifying income

false