practice RE
The role of the escrow agent includes
following all written instructions included in the purchase agreement; working with the lender who processes the loan; assuring clear title to the property; and meeting with the parties to sign documents and transfer keys
Items that are included in the verification of employment that are not apparent to the lender on the borrower's pay stubs and W-2s include all of the following EXCEPT a. amount of overtime pay for the year. b. probability of continued employment. c. remarks regarding periods of time off. d. reason for leaving past employment
. a. The dollar amount for any overtime pay can be seen on the pay stub or W-2. The anticipated continuance of this amount of income can only be seen on the VOE.
1. The possible responses from Fannie Mae's Desktop Underwriter® system include all of the following EXCEPT a. approved. b. approved with conditions. c. resubmit in 10 days. d. not approved.
. c. The loan may need to be resubmitted after certain conditions are met, but the initial response would be "approved with conditions."
The promissory note and deed of trust are surrendered to the a. seller. b. borrower. c. lender. d. named trustee.
. d. It is the trustee's responsibility to hold the note and deed of trust until the loan is paid off and the title is transferred to the new owner. If the new owner should default on the loan, it is the trustee's job to carry through a non-judicial (no court action) foreclosure.
5. Of the three approaches to value, the one given the most consideration in the appraisal of a one-unit residential property located in a suburban area is the a. comparative market analysis (CMA). b. cost approach. c. income approach. d. sales comparison approach.
. d. The cost approach is usually reserved for unique properties, the income approach is for income-producing properties, and the CMA is a marketing tool for real estate professionals
1. Items that the Smiths should bring to their initial meeting with the loan officer include all of the following EXCEPT a. two years of tax returns. b. recent paystubs or W-2 forms. c. three months of bank statements. d. name and address of all creditors.
1. a. Because Jack and Helen are not self-employed, they probably won't need to provide copies of their tax returns.
2. Which of the following assets shown on the Smith's loan application will most likely NOT be considered viable? a. IRA of $15,000 b. Stock worth $10,000 c. Heirloom grandfather clock worth $5,000 d. Savings account with $40,000
2. c. It is very hard to establish the actual value of personal property so it is typically not counted as a viable asset.
3. In the priority of liabilities, the first in line are a. installment accounts. b. revolving credit accounts. c. alimony or child support. d. promissory notes.
3. d. Notes payable are listed first, followed by installment accounts and revolving credit accounts. Alimony and child support are listed as a special category.
4. At their meeting with Margaret, the Smiths will need to sign all of the following EXCEPT a. Loan Estimate. b. Verification of Employment and Verification of Deposit. c. Uniform Residential Loan Application. d. form giving permission to obtain credit report
4. a. The Loan Estimate has to be filled out by the lender and submitted to the borrowers within three business days. The Smiths will then acknowledge receipt of the form.
Additional information provided in the Closing Disclosure that is not provided in the Loan Estimate includes all of the following EXCEPT a. a three-day waiting period prior to closing. b. closing cost details. c. a partial payment policy. d. escrow account details
a) a three day waiting period
Components of the Uniform Residential Loan Application include all of these EXCEPT a. copy of the applicant's credit report. b. type of mortgage and terms of loan. c. property information and purpose of loan. d. monthly income and combined housing expense.
a. A copy of the applicant's credit report will be pulled by the lender but it is not an actual component of the Uniform Residential Loan Application form.
A deed of trust contains all of the following EXCEPT a. a list of items conveying with the property. b. review or inspection contingencies. c. the location and date of closing. d. the closing costs and the responsible party.
a. A deed of trust contains all of the financial information regarding the sale, any review or inspection contingencies, the date and location of closing, the closing costs, the seller's representations and warranties, and other miscellaneous information.
Errors are often found in credit reports. Which of the following statements regarding a letter written to point out an error or to provide an explanation for a negative item is TRUE? a. The letter is made a part of the credit history file and retained for two years. b. The letter remains a permanent part of the file. c. The letter is only made visible to the party making the negative report. d. The letter has no impact on the credit score.
a. Any personal statement in response to a negative item on a credit report remains with the file for two years and is visible to anyone given permission to obtain the credit report.
When the title search found that the barn at 1000 Oak Lane encroached by five feet onto the neighbor's property, the neighbors could have a. required the barn to be removed. b. burned down the barn. c. terminated the contract. d. charged the new owners 15 years of back rent.
a. Fortunately, the neighbors were willing to agree to an easement allowing for the five foot encroachment of the barn onto their property.
The VOD form is most often used in today's market when the borrower a. does not have copies of recent bank statements. b. has funds in an internet-capable bank. c. has more than three bank accounts. d. is out of town.
a. In many cases, an applicant is able to obtain information regarding deposits, including recent bank statements, on the internet. If the bank is non-internet capable and the applicant does not have the copies, the lender will use the Request for Verification of Deposit form
8. Which of the following statements regarding the appraiser's statement of assumptions and limitations is NOT true? a. The appraiser is always subject to be called to testify in court. b. The appraiser does not render any opinions regarding the title; the title is assumed to be good. c. The appraiser submits a sketch showing the approximate dimensions of the improvements. d. The appraiser examines the FEMA flood maps and notes if the property is located in a flood zone
a. Item 4 of the Statement of Assumptions and Limitations Conditions clearly states that the appraiser will not give testimony or appear in court because the appraiser made an appraisal of the property in question, unless specific arrangements have been made beforehand, or if required by law.
4. The Uniform Residential Appraisal Report requires three comparable sales made in the previous 12 months. Each of the comparable properties is compared to the subject property and adjustments are made to either increase or decrease the value of the comparable property. Which of the following features would NOT be considered appropriate for a value adjustment? a. Luxury-grade appliances b. View of the lake c. Finished basement below grade d. 12' x 12' deck extending from the dining room
a. Much to the chagrin of the seller, to an appraiser a refrigerator is just a refrigerator. Although appraisers are required to make a visual inspection of the property, they do not consider specialty or luxury items to seriously impact its market value
The closing agent usually prepares the a. deed. b. deed of trust. c. Loan Estimate. d. Closing Disclosure.
a. The deed transfers title to the property to the new owner. The deed of trust is a financing document prepared by the lender. The lender also prepares the Loan Estimate and the Closing Disclosure. In the past, the closing agent prepared the HUD-1, which has been replaced by the Closing Disclosure.
5. The component(s) of an ARM that provides the most protection for the borrower is the a. adjustment period and life-of-loan caps. b. index. c. margin. d. initial interest rate.
a. The index can change. The margin must remain fixed, but when added to the index it can still create an increase in the note rate. The initial interest rate is primarily intended to attract borrowers to the loan and will most likely increase at the first adjustment period. The adjustment period and life-of-loan caps make it possible to provide the borrower with a worst-case scenario for the adjustable-rate loan.
The lender's primary concern is with a potential borrower's credit report is a. history of on-time payments. b. information from public records. c. number of people requesting copies of the borrower's credit report. d. any variations in information provided by the borrower, creditors, or other sources.
a. The lender wants to know that there is minimal risk in providing the borrower with the loan. A history of erratic, late, or non-payments can be very detrimental to a credit score.
A promissory note for the purchase of real estate typically includes all of the following EXCEPT a. a list of items conveying with the property. b. the amount of the loan. c. the terms of repayment. d. a reference to a late charge penalty
a. The note is primarily concerned with the loan on the property. Other information regarding the sale is contained in the deed of trust.
To remove a negative item from a credit report, the borrower must? a. contact the creditor for written proof of the correction. b. submit a written statement to the credit bureau. c. call all three reporting agencies to make the correction. d. ask the lender to ignore the mistake.
a. The only way to remove an error is through direct contact with the creditor, who must submit proof to the credit bureau. The borrower should then contact the other two credit reporting agencies with that information.
The parties involved in a deed of trust include all of the following EXCEPT a. settlement agent. b. borrower/trustor. c. trustee. d. beneficiary/lender
a. The primary function of the settlement agent is to see that all terms of the contract are met, regardless of whether a mortgage or deed of trust is used as collateral.
2. All of the following statements about comparing the comparable properties to the subject property are true EXCEPT a. the amount of an adjustment is based on a set amount for each category. b. the amount of an adjustment is determined by the appraiser. c. if the condition of a comparable is "better than" the subject property, you deduct from the comparable's value. d. if the condition of a comparable is "less than" the subject property, you add to the comparable's value.
a. There is no set list of appropriate amounts for adjustments for comparables when making an appraisal. The appraiser has a certain amount of leeway in determining the amount of adjustment.
Which of the following charges for third-party services is subject to the zero tolerance category? a. Those paid to an affiliate of the lender b. Those for which the consumer is allowed to shop c. Those not on a list provided by lender for which the consumer can shop d. Those not required by the lender
a. This is a significant change from the earlier revision of the GFE and HUD-1. These charges were subject to the 10% tolerance, but they are now in the zero tolerance category. Frequently, a lender may have affiliated title or insurance companies. The new rule is intended to protect the consumer from excessive charges.
The Loan Estimate must be provided to a potential borrower a. within three business days from application. b. within three days from application. c. within seven business days from application. d. at the closing of the loan
a. Under new CFPB rules, business days are defined as days when the lender's offices are open to the public for all business functions.
A nonprofit housing counseling organization should call their customer intake form any of the following EXCEPT a. application. b. pre-qualification form. c. customer survey. d. intake form.
a. Using the term application is a trigger for the requirement to provide mandated disclosures to the consumer, such as the GFE (now the Loan Estimate) and HUD-1 (now the Closing Disclosure) within specific time frames.
1. On the Uniform Residential Appraisal Report, all comparables are compared to the subject property. If the subject property has five bedrooms and the comparable has four, the comparable's value will be a. increased. b. decreased. c. left the same. d. thrown out
a. When the comparable is "better," the adjustment is made to decrease its value. When the comparable is "lesser," its value is increased. The adjustment amount is up to the appraiser
Page 1 of the Closing Disclosure is very similar to page 1 of the a. Good Faith Estimate (GFE). b. Loan Estimate. c. HUD-1. d. none of these.
b loan estimate
A bankruptcy would show up on a credit report in the section on a. credit items. b. public records. c. accounts in good standing. d. requests for credit history.
b. A search of public records is made when calculating an individual's credit report. A bankruptcy, outstanding unpaid liens, and a foreclosure will all have a detrimental effect on a credit score.
1. Which of the following statements regarding appraisals is TRUE? a. Appraisers do not have to be certified or licensed. b. Appraising is a combination of science and art. c. Comparable properties must be exactly like the subject property. d. The subject property should always be compared to the comparables.
b. Appraisers must be certified or licensed, no two properties are ever exactly alike, and the comparable properties are always compared to the subject by adding or deducting from the value of the comparables
2. A comparable property is two years old and the subject property is 15 years old. The value of the comparable property will be a. increased. b. decreased. c. left the same. d. thrown out.
b. In most cases, newer is considered better than older. Exceptions may be made for a historic property.
Which of the following charges is limited to no more than a 10% increase between the amount given in the Loan Estimate form from the Closing Disclosure form? a. Loan origination fee b. Recording fee paid by the buyer c. Transfer taxes d. Amounts paid in escrow
b. Loan origination and transfer taxes are in the zero tolerance category. Amounts paid in escrow are not subject to tolerance levels.
1. Which of the following types of income would be of most interest to a potential lender? a. overtime. b. base pay. c. bonus. d. commission.
b. Pay from overtime, a bonus, or commissions are not generally specific dollar amounts of monthly or annual income. A track record of similar payments over a period of time (typically two years) will be required in order for overtime pay, a bonus, or commissions to be included in the total income. Many employers are hesitant to promise a specific dollar amount for any of these income categories.
information that cannot change between the original Loan Estimate and the final settlement statement includes all of the following EXCEPT a. lender origination fees. b. property insurance fees. c. the number of discount points. d. transfer taxes
b. Property insurance fees are included in the list of charges that are allowed up to a 10% increase.
Certain demographic information is requested in the Information for Government Monitoring Purposes section. This information is used to monitor the lender's compliance with all of the following EXCEPT a. Equal Credit Opportunity Act. b. RESPA regulations. c. fair housing laws. d. Home Mortgage Disclosure Act.
b. RESPA regulations are now enforced by the Consumer Financial Protection Bureau and refer to the actions allowed or prohibited by the lender. RESPA regulations are not involved with demographics, such as race, nationality, or sex. Borrowers are not required to provide this information, and if they choose not to, the loan officer must make a visual observation.
1. Collateral for a loan for the purchase of real estate in Texas is established by a a. mortgage. b. deed of trust. c. either a mortgage or a deed of trust. d. neither a mortgage or a deed of trust.
b. Some states specify a mortgage while other states specify a deed of trust. Texas is a deed of trust state.
The most critical person involved in the processing of a mortgage loan is the a. loan officer. b. underwriter. c. processor. d. appraiser.
b. The actions of the loan officer, the processor, and the appraiser are all essential to the processing of the loan, but it is the underwriter who determines if the loan is approved.
3. The subject property is two stories with no basement. The comparable is two stories with a finished basement. The value of the comparable will be a. increased. b. decreased. c. left the same. d. thrown out.
b. The comparable has an additional feature that the subject property does not. This gives the comp a higher value. In order to make the comparison, the value must be decreased.
Any representations or warranties made by the seller must appear in the a. promissory note. b. deed of trust. c. listing agreement. d. mortgage.
b. The deed of trust contains all of the financial information about the sale, any review or inspection contingencies, the place and date of closing, the closing costs and the responsible party, the seller's representations and warranties, and other information regarding the indemnification of the purchaser, the sole agreement, and the assignment.
7. Implicit in the definition of market value are all of the following conditions EXCEPT a. buyer and seller are well-informed and acting in their own best interest. b. payment must be made in cash. c. property has been on the market for a reasonable period of time. d. no special or creative financing is provided by anyone associated with the sale.
b. The definition of market value states that payment must be made in U.S. dollars or comparable financing arrangements. This would include a mortgage or deed of trust loan.
2. The bank is concerned that the Smiths may not have enough cash available for the? a. down payment. b. closing costs. c. earnest money deposit. d. monthly payment.
b. The down payment is $37,000 and the closing costs are estimated to be $10,000 - 12,000. The submitted bank statement only shows a balance of $40,000, which is not enough. The mistake was that they forgot to count the $10,000 earnest money already paid to the escrow agent.
After a lender notifies the trustee that a borrower is in default, the trustee must take all of the following actions EXCEPT a. post a notice of sale on the door of the local county courthouse. b. establish the opening bid for the auction. c. file a notice of sale with the court clerk at least 21 days before the sale. d. notify the borrower of the date and place of the auction sale.
b. The lender will often make the initial bid of an amount to cover what is owed to the lender.
6. Potential borrowers are most likely to consider an adjustable-rate loan when a. interest rates on fixed-rate loans are low. b. interest rates on fixed-rate loans are high. c. they want a 15-year loan. d. they want a 30-year loan.
b. The length of the loan term is not usually as significant to a borrower as is the monthly payment. With an adjustable-rate loan, the low initial rate keeps the monthly payment lower.
The CFPB defines an application as a form that includes all of the following EXCEPT a. purchaser's name and income. b. purchaser's nationality. c. purchaser's social security number. d. mortgage loan amount requested.
b. The six items that define an application that triggers the full disclosures from the lender are the purchaser's name, income, and social security number; the property address; the estimated value; and the mortgage loan amount requested. Consumers can volunteer nationality information if they want to, but it is not required.
Which of the following is NOT an application trigger, requiring provision of the Loan Estimate? a. Consumer's name b. Consumer's home address c. Consumer's social security number d. Property's estimated value
b. The six triggers are the consumer's name, income, and social security number; the property address; an estimate of value of the property; and the mortgage loan amount sought.
2. When the Smiths compare the charges shown on the Closing Disclosure to those shown on the Loan Estimate, the charges that have a zero tolerance for any increase include all of the following EXCEPT a. loan amount. b. homeowners insurance fee. c. interest rate. d. monthly principal and interest payment
b. This service provider was selected by the borrower and is not subject to the tolerance levels. The monthly principal and interest payment (PI) cannot change. There can be a change in the TI portion of the total PITI payment.
Changes that may trigger providing a new Closing Disclosure and a new three-day waiting period before closing include all of the following EXCEPT a. a change in the APR greater than 1/8 percent. b. a change in the loan product. c. an increase in the home insurance premium. d. adding a prepayment penalty.
c an increase in home insurance premium
The major credit reporting agencies include all of the following EXCEPT a. Experian. b. Equifax. c. FICO d. TransUnion.
c. FICO is actually a method of scoring that is used by the credit reporting agencies.
6. Page 4 of the Uniform Residential Appraisal Report is the text version of the report. Under the Scope of Work section, the appraiser is directed to do all of the following EXCEPT a. inspect the neighborhood. b. inspect comparable sales. c. interview the present owners. d. perform a visual inspection of both the interior and the exterior of the property.
c. Often the owners/sellers have an inflated view of their property and the value of any special features it may have.
1. Which of the following statements regarding the Request for Verification of Deposit form is FALSE? a. Part I of the VOD is prepared by the lender. b. Part II of the VOD is filled in by the depository. c. The applicant (borrower) signs the VOD and delivers it to the depository. d. The VOD is not valid unless signed by an authorized depository representative.
c. Other than signing to authorize the lender's request for information, the borrower has no further contact with the VOD. The lender submits the VOD to the depository and the depository returns the VOD to the lender.
For the purchase of real estate, the promissory note is accompanied by a. only a mortgage. b. only a deed of trust. c. either a mortgage or a deed of trust. d. a mortgage and a deed of trust.
c. Since both of these documents may be used to establish collateral on the loan, only one of them is attached to the promissory note. Texas is a deed of trust state so when real estate is purchased in Texas, the promissory note will be accompanied by a deed of trust.
1)The new Loan Estimate form replaces the a. Good Faith Estimate (GFE). b. truth-in-lending disclosure (TIL). c. Good Faith Estimate (GFE) and truth-in-lending disclosure (TIL). d. HUD-1 settlement statement.
c. Some information has been integrated into the Loan Estimate form, and new components have been added.
Which statement regarding the establishment of collateral for a loan is TRUE? a. A mortgage is only used in northeastern states. b. A deed of trust is only used in western states. c. Texas is a deed of trust state. d. All states currently use a deed of trust.
c. State law determines whether the preferred way to establish collateral for a loan is through a mortgage or a deed of trust. There is no particular pattern as to which states use a mortgage or a deed of trust. Some states allow for either one.
Lenders generally prefer that an American Land Title Association (ALTA) policy be used for title insurance because it a. is less expensive. b. is limited to lenders only. c. provides more extensive protection. d. includes the chain of title.
c. The ALTA policy expands the standard coverage to include other risks, such as protection against forgeries, incompetency of parties involved in the preparation of documents, and surveying errors. Special endorsements can add additional protection.
3. The first page of the Uniform Residential Appraisal Report contains information about the subject property including all of the following EXCEPT a. neighborhood characteristics. b. availability of utilities. c. racial composition of the neighborhood. d. description of the exterior of the house.
c. The appraisal form clearly states that race and racial composition of the neighborhood are not appraisal factors.
2. The section of the Uniform Residential Loan Application that usually takes the most time and is the most difficult to fill in is the a. type of mortgage and terms of loan. b. monthly income and combined housing expense. c. assets and liabilities. d. details of transaction.
c. The form itself offers reminders for possible assets the consumer may have but applicants often overlook items. Most people do not have information about credit companies and their addresses, terms, amounts outstanding, and so on readily at hand and may have to submit these details later
Most of the items on a Request for Verification of Deposit are filled in by the a. lender only. b. bank only. c. lender and the bank. d. borrower
c. The lender fills in items 1-8 and the bank fills in 10-18. The borrower only provides a signature at item 9.
A potential borrower has a credit score of 690 with Equifax, 710 with Experian, and 640 with TransUnion. The lender will most likely use a score of a. 640. b. 680. c. 690. d. 710
c. The lender generally uses the middle score, not an average of the three, because not all creditors report to all three reporting agencies.
The trustor in a deed of trust is the a. seller. b. settlement agent. c. borrower (new owner). d. beneficiary.
c. The seller transfers title to the new owner, who then immediately transfers that interest to the trustee. The trustee is a person named by the beneficiary of the trust—the lender.
New components of the Loan Estimate form include all of the following EXCEPT a. a calculation of the cash needed at closing. b. a calculation of the total interest percentage over the life of the loan. c. a list of charges subject to zero tolerance. d. the total payment amount (principal, interest, mortgage insurance, and loan costs) over five years
c. This list was included in the revised GFE form in 2010 but is not included in the new Loan Estimate form. The mandated zero, 10%, or open tolerances are to be strictly observed in reviewing the Closing Disclosure form.
A self-employed owner of local produce market is applying for a loan to purchase a new home. She will most likely be required to provide the lender with a. track record of bonuses received. b. pay stubs. c. W-2 forms. d. two years of tax returns.
d. A self-employed individual will not have pay stubs, W-2s, or any record of bonuses or commissions. In addition to the tax returns, she will have to provide a Profit and Loss statement from her accountant and other information regarding her business income and expenses.
Actions initiated by an individual that affect a credit score include all of the following EXCEPT a. applying for a credit card. b. applying for a car loan. c. applying for a mortgage loan. d. requesting a copy of your own credit report.
d. Actions resulting in an inquiry regarding your credit history will affect your credit score unless you are requesting your own information. In fact, it is highly recommended that everyone check their own credit report on a regular basis.
Which of the following statements regarding the Smiths' credit history is NOT true? a. The child support payments end in two months so they do not count. b. Helen has too many credit cards. c. The controversy over the doctor's bill must be resolved. d. They should immediately pay off all credit cards.
d. Even if they had enough money to pay off all of their credit cards, it is not a good idea to do it all at once. A sudden pay-off of all credit cards is a red flag to credit reporting agencies and will definitely damage their credit scores.
The new Closing Disclosure form replaces the a. Good Faith Estimate (GFE). b. HUD-1. c. truth-in-lending disclosure (TIL). d. HUD-1 and final truth-in-lending disclosure.
d. HUD-1 and final truth-in-lending disclosure
In most cases, the trustee named in a deed of trust is selected by the a. new owner (borrower). b. seller. c. settlement agent. d. lender (beneficiary of the trust).
d. In rare cases, Texas may allow the beneficiary of the trust to serve as the trustee, but in most cases the lender (beneficiary) only selects the trustee.
A lender might prefer to use a deed of trust instead of a mortgage to establish collateral for a real estate loan because a. there is less paperwork. b. there are fewer parties involved. c. the lender has more control. d. a foreclosure can be accomplished more quickly.
d. The amount of paperwork and control are not really issues. There are actually more parties involved with a deed of trust (borrower/trustor, trustee, beneficiary/lender). The major benefit of a deed of trust is that foreclosure can be accomplished more quickly because no court action is required.
The most recent bank statement shows a deposit of $10,000 on March 1. The borrowers are scheduled for settlement on their new home on April 1. The past three months of bank statements show no other large deposits being made. The lender will most likely a. require a Verification of Deposit from the borrower. b. process the loan more quickly. c. congratulate the borrowers on this windfall deposit. d. require a Verification of Deposit from the bank plus a letter of explanation from the borrower
d. The concern is that the borrowers may have incurred additional debt to obtain the $10,000 needed for closing. Additional debt could affect their qualifying ability for the loan. If the $10,000 was a gift, a letter of explanation may be required stating that no repayment is required.
8. The component of an ARM that can never be changed is the a. index. b. initial interest rate. c. note rate. d. margin.
d. The lender selects the index to be used up-front, but that index can change as often as quarterly. The bank also sets the margin (the margin of profit they expect to receive on the loan), which can never be changed during the life of the loan. The initial interest rate almost always increases with the first adjustment period when the new note rate is established based on the current index plus margin.
Specific tolerance levels for changes between the charges in the Closing Disclosure form and the Loan Estimate form were established when the a. Loan Estimate form was created. b. Closing Disclosure form was created. c. Consumer Financial Protection Bureau was created. d. Good Faith Estimate was revised effective January 2010
d. The tolerance levels are strictly enforced in the new Closing Disclosure form but are not specifically addressed in the new Loan Estimate form.
1. After the loan has reached final approval, Anytown Bank's closing department will prepare all of these documents EXCEPT a. deed of trust. b. promissory note. c. Closing Disclosure. d. Loan Estimate.
d. This form was prepared by Anytown Bank within three days after the Smiths made their application. It will be compared to the final Closing Disclosure, which the bank now prepares. The lender prepares all documents pertaining to the loan, such as the note and deed of trust.
Texas is a community property state, which may affect the information provided in which section of the Uniform Residential Loan Application? a. Borrower Information b. Employment Information c. Monthly Income and Combined Housing Expenses d. Property Information and Purpose of Loan
d. This section of the form asks how title is to be held. In some states, the answer may be joint tenants, tenants in common, or tenants by the entirety. In Texas, the answer would be community property. Property may only be considered separate property if acquired prior to marriage, by gift, or by a will.
The Closing Disclosure form includes all of the following EXCEPT a. amount to be collected in escrow for taxes and insurance. b. amount of cash needed at closing. c. all loan terms (amount, interest rate, and PI payment). d. measures for comparing loans.
d. This was included on the Loan Estimate but at the time of closing it is no longer relevant.
The lender may require a Request for Verification of Employment in all of the following situations EXCEPT a. when the borrower has an anticipated increase in the hourly rate. b. there is part-time income to be added to full-time employment income. c. funds have been received from more than one employer over the past two years. d. the employee is guaranteed 12 hours of overtime per week in the future.
d. Verification of any anticipated future income has to be documented by the employer. A bonus, commissions, or part-time pay are usually flexible sources of income with no guarantee of being paid in the future.