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
