Xinnix Final
Using the information provided answer the following FHA question Sales price: $185,000 Interest rate: 6 3/8% 30 year fixed rate Taxes: $175 Homeowners insurance: $55 Closing costs: $4483 Prepaids: 1% Seller contribution: $3000 PITI and CASH TO CLOSE?
$1,493.11/$9,831
Based on the following scenario how much money will the borrower save each month by choosing conventional loan with a HELOC second mortgage, instead of a conventional loan with MI? Sales price equals $405,000 interest rate on a 30 year fixed rate first mortgage equals 6.25% interest rate on HELOC second mortgage equals 8.5% down payment equals 10% Taxes equals $350 monthly homeowners insurance equals $105 monthly
$150.82
Using the following information, answer the following conventional financed MI loan question. Sales Price = $185,000 Down Payment = 10% Credit Score = 635 20-year Fixed Rate Owner-occupied What is the Total Loan Amount and MI Factor?
$169,247/1.65%
What is the largest house payment that Mr. Coulter can have with his current income of $75,500 per year considering he just bought a car with a payment of $525 per month? (FNMA)
$1740
What is the largest house payment Ms. Joyce can have with her current income of $92,650 per year considering she has a $525 car payment and $0 in credit cards? (FHLMC)
$2,161.83
What is the PITI payment on a home priced at $360,000 with a 20% down payment, 5.5% interest rate over 30 years with 1.5% for annual taxes and .3% for annual homeowners insurance
$2,175.23
Using the information provided, answer the following 80/15/5 question. Sales Price = $350,000 Interest Rate on a 30-year fixed rate 1st mortgage = 6% Interest Rate on HELOC 2nd mortgage = 8.5% Down Payment = 5% Taxes = 1% Homeowners Insurance = .3% What is the PITI using both mortgages?
$2,429.79
Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for overtime (more than 40 hours per week) and has been averaging 50 hours every week, since starting with the company five years ago. Her current paystub from 7/15 of this year shows a YTD gross income of $26,260. Her W2 from last year shows $48,048 and the year before shows $46,116. What is the monthly base income and monthly overtime income that would be entered on the 1003? (Overtime not guaranteed)
$3033/$915
Your borrower is paid $1,950 bi-weekly and has been on his job for three years. His wife works part time and makes 10.25 an hour. She works 20 hours per week and has been on her job for two years. What is their combined monthly income
$5,113
Redisclosure of the Truth in Lending is required if the APR changes more than % on a fixed rate loan
.125
Redisclosure of the Truth in Lending is required if the PAR changes more than _____% on a fixed rate loan?
.125
On an ARM, redisclosure of the Truth in Lending is required if the APR changes more than _____%?
.25
What is the funding fee for a veteran who has not used his/her eligibility and plans on purchasing a home with 5% down payment
1.65
What is the funding fee for a veteran who has not used his/her eligibility and plans on purchasing a home with 5% down payment
1.65%
What is the funding fee for a veteran who has not used his/her eligibility and plans on purchasing a home with 5% down payment?
1.65%
The borrower does not want their P&I payment to go above $1,250 per month on a 30-year term. With an interest rate of 6.5%, what is the maximum loan amount for this borrower?
197750
What is the maximum seller contribution allowed for an investment property at 80% LTV? (FNMA/FHLMC)
2%
After the borrower submits a complete loan application, the LE must be delivered or placed
3 Business days
After the borrower submits a complete loan application, the LE must be delivered or placed in the mail within how many days?
3 business days
What is the maximum seller contribution allowed for a primary residence at 85% LTV (FNMA/FHLMC)
3%
What is the maximum seller contribution allowed for a primary residence at 95% LTV (Fnma/Fhlmc)
3%
On an FHA 203(k) Limited program purchase
35,000
The maximum allowable ratios for an owner-occupant when using a non-occupant co-borrower per FHLMC guidelines is ______________.
35/43
A borrower purchased a home on Jan 15th and is moving in on March 2nd
46 days
A borrower purchased a home on January 15th and is moving in on March 2nd. How many days from purchase to move in? (For non-leap years only)
46 days
A borrower is closing on a home on July 17th
5/18
A borrower is closing on a home on July 17th and needs to lock in their rate 60 days prior
5/18
If the guidelines state that the maximum seller contribution is 3%, how much can the seller contribute toward the borrowers cash to close with a sales price of $179,450?
5383
What is the maximum seller contribution allowed for a primary residence at 85% LTV
6%
What is the qualifying rate for a 5/1 arm with a note rate of 3.75% and 2/6 caps? The fully indexed rate is 6%
6%
What is the qualifying rate for a 5/1 ARM with a note rate of 3.75% and 2/6 caps? The fully-indexed rate is 6.00%
6.00%
What is the qualifying rate for a 7/1ARM with a note rate of 6.00% and 2/6 caps? Fully indexed rate is 5.98%
6.00%
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of 2.5%. What would the borrower's interest rate be for year 2 if the index is at 4.25%?
6.25%
Based on a loan amount of $225,000, how many years will it take your customer to break-even if they choose to pay 1.5% in discount points to secure an interest rate of 6.00% as opposed to zero points for a 6.25% rate?
7.73 years
Your borrowers are purchasing a home for $515,000 they are requesting a $412,000 first mortgage and a $51,500 fixed-rate second what will their LTV, second MTG let and down payment be if structure this way
80/10/10
Your borrowers are purchasing a home for $475,000. They are requesting a $380,000 first mortgage and a $71,250 HELOC . What will their LTV and second mortgage LTV and down payment be it's structured this way
80/15/5
Using the following information answer the conventional loan question. Sales price= 143,000$
85%/.25%/$25.32
What is the maximum seller contribution allowed for a primary residence below 75% LTV (FNMA/FHLMC)
9%
A borrower's brother would like to give her money to help towards the down payment of her new house. This would be considered....
A gift from a relative and would require a gift letter, as well as proof that the funds have been transferred to the borrower's account.
The following factors are considered when determining the principal limit for a reverse MTG
All of the above
Which document is not necessary for the builder provide to the mortgage company on an FHA new construction loan prior to the loan being cleared to close?
Appraisal Certificate
All of the following documents must be provided by the builder to the mortgage company on an FHA new construction loan prior to the loan being cleared to close EXCEPT:
Appraisal Certificate MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation Certificate
Which of the following is the correct list of charges included when calculating the borrowers cash to close
Down payment, closing costs, prepaids, discount points, MI paid in cash (EUFMIP/FF)
The following are types of renovation mortgages:
FNMA HomeStyle, FHA 203(k)
1. Gross rent may be considered effective income when an applicant is planning to rent their current residence after closing on the purchase of their new home.
False
A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a specific lender/investor in the lender specs.
False
A borrower can use a credit card to pay for their required down payment
False
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay periods per year
False
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay periods per year.
False
A borrower requesting a jumbo loan will qualify for an agency loan
False
A borrower's income is a factor considered when determining the principal limit (maximum loan amount) for a reverse mortgage.
False
A borrower's income is a factor considered when determining the principal limit for a reverse mortgage
False
A partner's percentage of ownership and earnings can be located on Schedule E part II of their personal tax returns.
False
A partners percentage of ownership and earnings can be located on Schedule E part 11 of their personal tax returns
False
A room addition is allowed under the FHA 203(k) Limited program.
False
A veteran has the ability to transfer a portion of their entitlement to another veteran.
False
A veteran may exchange a portion of their entitlement for cash
False
Churning schemes usually involve falsified down payment amounts and falsified appraisals
False
Churning schemes usually involve falsified down payment amounts and falsified appraisals.
False
Flipping is a scheme where several people each
False
Gross rent may be considered effective income when an applicant is planning to rent their current residence after closing on the purchase of their new home
False
HOA dues are included in the PITI calculation
False
If a student loan payment is deferred, it does not have to be included in the borrowers ratios
False
If student loan payment is deferred, it does not have to be included
False
If your borrower is being relocated and needs to close in 30-days, and their spouse will not be moving for 3 months, the spouse's income can still be used to qualify.
False
Income or losses derived from partnerships can be located on Schedule K-1 of a borrower;s personal tax return.
False
On an FHA loan the upfront MIP should be included when calculating cash-to-close
False
On an FHA loan the upfront MIP should be included when calculating cash-to-close.
False
Tenancy in Common is not an acceptible manner in which a title may be held
False
The borrower must have 5% of their own funds when putting 15% down on a primary residence FNMA
False
The borrower must have 5% of their own funds when putting 15% down on a primary residence. (FNMA)
False
The builder must provide an appraisal certificate to the mortgage company on an FHA new construction loan prior to closing
False
The builder must provide an appraisal certificate to the mortgage company on an FHA new construction loan prior to closing.
False
The maximum LTV for a 1 unit investment property is 95% (FHLMC)
False
The maximum LTV for an FHA purchase is 97%.
False
The qualifying rate for a 7/1 ARM is 2% above the start rate
False
The qualifying rate for a 7/1 ARM is 2% above the start rate.
False
Trailing spouse income can be used for qualifying purposes
False
Unemployment income can not be used as qualifying income
False
Unless a borrower can document extenuating circumstances they must wait at least 7 years from a Chapter 7 bankruptcy
False
VA sets their own maximum loan limits
False
VA sets their own maximum loan limits.
False
YTD paystubs will be required from a borrower that is self-employed (Schedule C).
False
A room addition is allowed under the FHA 203k limited program
Flase
The following are types of renovation mortgages
Homestyle FHA 203K
It is ultimately the _________ responsibility to take a thorough loan application to make sure all required documents are requested, and to effectively relay the decision to the borrowers
Loan officers
Which agency allows a borrower to qualify at the start rate for qualifying on a fixed rate with Buydown?
NOT FNMA, FHA, or FHLMC so its VA
Using the information provided, answer the following FHA question: Sales Price = $137,300 Interest Rate = 6.875% 30-year fixed Taxes = 1.5% Homeowners Insurance = .3% What is the PITI?
NOt 1091.59
Which of the following loan options would be best for a borrower looking to stay in the home for 3 years?
NOt 5/1 ARM
Based on the following scenario, does the borrower qualify within FNMA guidelines? PITI: $1,725 monthly Income: $7,000 Debt: $700 car payment, $375 student loan ($2,250 balance), $170 credit card payments ($1,530 balance
No
Based on the following scenario, does the borrower qualify within the FHLMC guidelines? PITI: $1,375 monthly Income: $4,950 monthly Debt: $350 car payment, $420 student loan ($4,500 balance), $75 credit card payments ($850 balance).
No
Using the information provided, answer the following FHA question: Sales Price = $245,600 Interest Rate = 4.25% 30-year fixed Taxes = 1.5% Homeowners Insurance = .3% What is the PITI
Not 1554.72
What is the maximum house payment Ms. Campese can afford with her current income of $104,400 per year, $300 car payment, $350 student loan and $50 credit card payment? (FHLMC)
Not 2386
Using the information provided, answer the following cash-out question using FNMA: (do NOT round the loan down) Value = $350,000 Current balance = $228,000 Current payment = $1,920 Cash requested = $20,000 Taxes = $270 monthly Homeowners insurance = $75 monthly Closing Costs = 2.5% Prepaids = 1% What is their new loan amount and proposed monthly payment (PITI) based on a 30-
Not 259,120
What is the largest house payment Ms. Joyce can have with her current income of $92,650 per year considering she has a $525 car payment and $0 in credit cards? (FHLMC)
Not 2779.50
Using the information provided answer the following rate/term refinance question (FNMA). Value = $370,000 Balance = $280,000 Current payment = $2,450 Interest Rate = 6.375% Closing Costs = 2.5% Prepaids = 1% What is the new loan amount/P&I payment/LTV
Not 294,050
Chris earns $36,000 per year from his primary job. He also has a 2nd job in the same line of work earning $11.25 per hour. He is only able to work 12 hours a week on the 2nd job but has been doing so for 8 months. What is his monthly qualifying income?
Not 3585
What is the qualifying rate for a 3/1 ARM with a note rate of 4.25% and 2/6 caps? The fully-indexed rate is 6.38%
Not 5.25%
Your borrower is being relocated and needs to close on the purchase of their new home in thirty days. Their spouse will not be moving for another six months. How much income can be used for qualifying if the relocating borrower is earning $92,000 annually and the trailing spouse is earning $36,000 annually? (FNMA)
Not 7466
Using the following information, answer the following conventional loan question. Sales Price = $143,000 Down Payment = $21,450 2/1 Buydown 20-year fixed rate Owner-occupied What is the LTV/MI Factor/Monthly MI payment?
Not 85%/.34%/34.44
A veteran may be exempt from the VA Funding Fee if
Receives benefits for a service related disability
Three different categories of non-US Citizens that may apply for a mortgage loan or may not qualify are:
Resident Aliens, Non-Resident Aliens, Foreign Nationals
How many days must a borrower wait to close once they receive their initial disclosures
Seven
Which of the following statements are False
The lender that buys loans from a mortgage broker is called a correspondent lender and lender and a mortgage bankers transaction is the wholesale lender
A 2/1 buydown typically costs 2.5 discount points. Give or take .25%.
True
A 3-Year ARM adjusts every 3 years
True
A 3-Year ARM adjusts every 3 years.
True
A 30-year conventional loan with an 87% LTV would require 25% mortgage insurance coverage.
True
A HELOC loan has an interest only payment
True
A borrower must qualify at the note rate on a temporary buydown, not the start rate.
True
A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD paystub.
True
A borrower that is self-employed (Schedule C0 will typically not be required to provide a YTD paystub
True
A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments are amortized over the term of the loan. Once the balance is paid off the mortgage is closed.
True
A lender must notify an applicant of action taken within 30 days after receiving a completed application concerning the lender's approval of, counteroffer to, or adverse action on the application.
True
A liability not listed on the credit report will typically need to be included on the loan application
True
A non-arm's length transaction occurs when the borrowers or any other party to the transaction have a direct relationship with another party to the transaction (including, but not limited to, the employer, lender, broker, or appraiser).
True
A program description contains the summary of eligibility requirements for a loan to be sold to a specific lender/investor.
True
A stand alone second mortgage is obtained separately from a first mortgage.
True
A tax service fee is a non-allowable fee by FHA
True
A veteran and a spouse may qualify together for 100% financing on a VA
True
A wholesale Lender is the lender that buys loans from a mortgage broker
True
AUS is the acronym for Automated Underwriting Sysytem
True
An FHA 203(k) Standard program would require a HUD Consultant.
True
An origination fee may be paid by the borrower on an FHA loan
True
Borrowers must meet income limits per USDA guidelines
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
Desktop Underwriter would result in a decision of Approve/Ineligible on a loan with excellent credit which qualifies as a jumbo loan program
True
Desktop Underwriting (DU) would result in a decision of Approve/Ineligible on a loan with excellent credit which qualifies as a jumbo loan program.
True
Except for high-cost areas, the maximum loan amount on a 1-unit, single family residence is $510,400.
True
FHA Case Numbers are tied to the property, not the borrower.
True
FHA guidelines require 3 years to have passed since a foreclosure, deed in leau
True
FHA loans have both a BASE Loan Amount and Total Loan Amount
True
FNMA and FHLMC are fully backed by the U.S. Government
True
FNMA and FHLMC define a large deposit as any single deposit that exceeds 50%
True
FNMA and FHLMC define a large deposit as any single deposit that exceeds 50% of the borrower's total monthly qualifying
True
HOA dues should be added to the PITI for the purpose of calculating ratios when qualifying a borrower.
True
HomeOONe will allow up to 97%LTV for a primary residence
True
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
If a borrower qualifies for an agency loan of $295,750, FHA is a viable loan option
True
If a borrower qualifies for an agency loan of 325,000$, FNMA is a viable option
True
If a veteran has previously used their VA entitlement and it has not yet been restored, their COE may show an available amount which is less that the VA maximum allowable entitlement
True
If the VA maximum entitlement has been changed
True
If the term of of an ARM Is five years or less, the qualifying rate is the start rate +2% or the fully indexed rate, which ever is greater
True
Income from real estate or royalties can be located on Schedule E part1
True
Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC)
True
Loan Product Advisor (LPA) is one of the most widely used automated underwriting systems in the mortgage industry.
True
Loans with an LTV >80% will typically require mortgage insurance. (FNMA/FHLMC)
True
One month of the borrower's current house payment must be included when calculating the new loan amount for a cash-out refinance
True
One month of the borrowers current house payment must be included when calculating the new loan amount for a cash-out refinance
True
Rate Adjustments listed on a Mortgage Insurance company rate card are added to or subtracted
True
Relief Refinance Program loans are designed to help homeowners who are current on their mortgage payments but are unable to refinance due to a drop in their home value.
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 Correspondent Lender is the "end" lender in a mortgage banker's transaction
True
The P&I on an FHA loan is calculated using the TOTAL Loan Amount.
True
The age of the youngest borrower is considered when determining the principal limit (maximum loan amount) for a reverse mortgage.
True
The funding fee for an active duty veteran who has previously used their eligibility and is purchasing a home with zero down is 3.60%
True
The maximum LTV for an FHA cash-out refinance is 80%
True
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12
True
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85%/12
True
There is no minimum credit score needed to run/submit both HomeOne and Home Possible® through an automated underwriting
True
Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax return.
True
VA requires connection to a public or community water/sewer disposal system if required by local building, planning, or health authorities
True
VA space requires connection to a public or community water/sewer disposal system if required by local building, planning, or health authorities
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 + Annual Cap or the Fully-indexed rate, whichever is less.
True
When calculating a borrower's income, unreimbursed business expenses should be subtracted from the gross income
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
When using automated underwriting for a FNMA loan, DU will determine the borrower's reserve requirement for an investment property.
True
Choose the correct relationship between the Name of the Report and mortgage interest rate tendencies.
When the CPI goes UP, Rates tend to go UP When the GDP goes DOWN, rates tend to go DOWN When the Unemployment Rate goes UP, rates tend to go DOWN
Reimbursed business expenses are to the borrower's gross income
added to