Mortgage Cards
the VA Funding Fee in less than a 5% down payment is
2.30%
The closing disclosure must be provided at least_______________business days prior to consummation
3 days
The loan estimate must be disclosed to the borrower within how many days from the application?
3 days
a loan officer must make a closure within how many business days
3 days
Which of the following entities is not part of secondary market
FHA
Which of these entities was created first
FHA (Federal Housing Administration)
can FHA loans be used for investment or non-owner occupied transactions?
FHA loans are meant for owner occupied transactions
What are the marital options to list under marital status
married, unmarried, and separated
The homeowners protection act covers what?
that all homeowners with PMI can remove the mortgage insurance once the mortgage balance reaches 78% LTV
in all advertising if interest rates what must always be included?
the APR
If the borrower has questions about their loan and wanted to file a complaint they could contact?
the CFPB
NMLS was created by
the CSBS (Conference of State Bank Supervisors) and the AARMR (American Association of Residential Mortage Regulators
Which of the following would be considered a clerical or support duty?
the collection of tax documents from the borrower, the analysis of the borrowers credit report
What is the national conventional loan limit?
$510,400
in the CD section titled," services borrower did shop for" what is the tolerance for items where the borrower used a service provider from the lender disclosured?
10% cumulative
Borrower information must go back at least how many years?
2 years
How many years of income is generally required to qualify for a mortgage?
2 years
Previous employment information is gathered if the borrower has not been at their current employment for at least
2 years
VA Loans require how much of a down payment?
0%
What is the required down payment on a USDA loan?
0%
how many units can a residential mortgage have before it becomes commercial?
1-4
what is the minimum down payment for a conventional loan?
3%
traditional mortgage is
30 year fixed rate mortgage
USDA only offers
30 year mortgages
The last revision and disclosure of a loan estimate can be made how many days before consummation?
4 days
VA Loans only have one ratio, which is
41%
A TRID The signed application constitutes how many pieces of borrower provided information
6
Seller concessions for a minimum down payment FHA loan are?
6%
What is the percentage of rental income that can be counted?
75%
The best definition of a prorated charge that the lender requires to be paid in advance is called
A prepaid
when a loan is______________, it means that someone can take over the responsibility of the loan
Assumable
ARMs stands for
Adjustable rate mortgage
Total Debt Ratio
All monthly payments/ Gross monthly income
An ARMs risks and rewards are
An ARM starts out lower and may increase over time
What is the CRV for a VA loan?
Certificate of Reasonable Value
What are the four C's of FHA underwriting?
Credit, capacity, cash, collateral
Which of the following entities are part of secondary market
Fannie Mae, Freddie Mac, Ginnie Mae
The loan estimate replaced which disclosures and residential loan transactions?
GFE and TIL
All the following kill as part of the history for employment except?
Going from W2 employment commission sales
ECOA and FHA prohibit discrimination. What law tracks discrimination
HMDA (Home Mortgage Disclosure Act)
The acronym IRRRL means
Interest Rate Reduction Refinance Loan
The __________________ is the generic application that every applicant must fill out on the NMLS.
MU4
Borrowers namea can vary based on
Maiden or married names
Housing Ratio
Monthly house payment or rent/ gross monthly income
if the loan is assumable or has a late payment feature can both be found on which page of the CD?
Page 4
If the borrower fails to pay property taxes and/or insurance, what can The lender do?
Pay these costs and add the amount to the loan balance
What does PITI stand for?
Principle, Interest, Taxes, Insurance
the HOEPA is which Reg?
Reg Z
the ___________________ Act was responsible for the creation of the modern-day licensing of mortgage loan originators
SAFE
TRID stands for
TILA-RESPA Integrated Disclosure
Which entity was created by the Dodd-Frank Act?
The CFPB
What law, passed in 2010, is the backbone for new regulation of the mortgage industry like LO Compensation?
The Dodd-Frank Wall Street Reform Act
Who determines the manner in which the title will be held?
The borrower with help from their legal advisor
the 1003 Application is meant to be filled out
The borrower with the lenders assistance
The borrower must meet USDA income eligibility guidelines. This means,
The borrowers income cannot exceed 115% of median income
Information for government monitoring means
The government monitors HMDA information
What federal law regulates PMI?
The homeowners protection act
triggering terms would be
The interest-rate, the monthly payment, the down payment amount or percentage
mortgage insurance protects who
The lender
which of the following is used on a conventional loan to calculate the LTV?
The lower value of either the purchase price or appraised value
Which of the following is the best definition of reserves
The money still in the borrowers account after down payment or closing costs are paid
triggering terms include
The monthly payment, the down payment amount or percentage, and the interest-rate
the acronym UFMIP means
Upfront Mortgage Insurance Premium
Generally speaking housing ratios include all the following except
Utilities
Liabilities include all the following except
Utilities, Redbox, Hulu, and Netflix
a ___________________ is defined as an entity that provides funds for a mortgage
a mortgage lender
what is a construction loan
a short term loan to build a home
The "caps" are adjustments in years, percentages, or both
adjustments are in percents
What is a hybrid ARM?
an ARM with fixed and adjustable features
Page 3 of the CD includes which two summaries?
calculating cash to close and summaries of transactions
a COE in a VA loan is a
certificate of eligibility
index is the
cost
what is generally covered on page 2 for the loan estimate?
costs
What is a section of yes and no questions answered by the borrower or coborrower called
declarations
which of the following would be considered a prohibited practice?
directly defrauding a borrower, engaging in a deceptive practice, obtaining a property by fraud
Which is the only fee that can be charged before a loan estimate is disclosed?
fee for a credit report
Property is held as either leasehold or
fee simple
The projected payments section will have columns based on
fixed generally 2 columns
What is the name of the law which covers the cancellation and termination of private mortgage insurance?
homeowners protection act
Total debt to income ratios include all the following except
insurances such as medical and car
Which of the following is not an acceptable form of down payment?
money saved at home
a _________________ is defined as an entity that provides funds for a mortgage
mortgage lender
how do you "gross up the income"
multiply the net income by 125%
Well the borrowers rent payment be shown on the proposed column of the loan application
no, we don't show rent as we only do mortgage loans
which of the following is included in the calculation of a borrowers credit score
payment history, amounts owed, credit mix
which of the following is a main concern of the Interagency Guidance on Nontraditional Mortgage Product Risks?
payment shock
margin is the
profit
Refinance loans can be used for all the following except
purchasing a new home
a HECM is also more commonly known as a
reverse mortgage
The loan cost section of the loan estimate include origination charges, services the borrower cannot shop for and this section
services the borrower can shop for
What do the numbers 3/2/6 mean in an ARMs mortgage
starting rate plus 3(amount of change on 1st adjustment), 2 (amount of change annually), 6 (the starting rate plus this is MAX OR LIFETIME CAP)
Net worth is determined by
subtracting liabilities from assets
The mortgage loan application is also known as the
the uniform residential loan application URLA or 1003 or Form 65
Why is only a portion of the rental income counted?
to allow for advertising of an empty rental unit, to allow for repairs, to allow for vacancy
why was the MAP Rule created?
to prohibit misrepresentation of the terms of a mortgage product
T/F a loan officerShould present the borrower with multiple loan product options
true
With a self-employed borrower we must collect
two years personal and business tax returns
FHA loan limits are
very depend in on the county
What is a balloon mortgage?
when the final payment of a mortgage is significantly higher than proceeding payments to pay off the loan
On page 2 of the CD, the section entitled "services to borrower did not and could not shop for"Includes fees that have what type of tolerance?
zero tolerance