Xinnix SOAR Mock Exam
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 $2,750 See Course 8, Lesson 4
What is the borrower reserve requirement, using manual underwriting, for an investment property? (FHLMC)
not 3 months plus 2 months for each additional property (excluding principle residence) See Course 4, Lesson 7
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 4.25%
Verification of employment, income, source of funds and payment history must not be older than ______ days prior to the note date.
not 60
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, second mortgage LTV and down payment be if structured this way?
not 80/10/10 See Course 3, Lesson 5
What is the maximum seller contribution allowed for an investment property at 80% LTV? (FNMA/FHLMC)
2%
How many discount points does a 2/1 buydown typically cost?
2.5
How long does a consumer have to shop for a mortgage without the credit inquiries affecting their score?
30 days
What is the maximum seller contribution allowed for a primary residence at 85% LTV? (FNMA/FHLMC)
6%
Your borrowers are purchasing a home for $525,000. They are requesting a $393,750 first mortgage and a $78,750 HELOC. What will their LTV, second mortgage LTV and down payment be if structured this way?
75/15/10
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.
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
Which document is not necessary for the builder to provide to the mortgage company on an FHA new construction loan?
Appraisal Certificate
A Loan Officer would perform all of the following functions EXCEPT:
Approve the loan
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 borrower tells you about a liability that is not listed on the credit report, it doesn't need to be included on the loan application.
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 be used to qualify.
False
Once the borrowers sign Page 5 of the CD, they are obligated to accept the loan terms.
False
Surveys are required on every loan.
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 cash-out refinance is 85%.
False
The qualifying rate for a 7/1 ARM is 2% above the start rate.
False
Unless a borrower can document extenuating circumstances, they must wait at least 7 years from a Chapter 7 bankruptcy or foreclosure to apply for conventional financing.
False
YTD paystubs will be required from a borrower that is self-employed (Schedule C).
False
The borrower should have contact information for what three people? (select all that apply)
Loan Officer, Processor, Assistant
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
A borrower who has made an offer on a property, but has not yet provided their paystubs, bank statements and W2s would be issued which letter?
Pre-Qualification Letter
Lender Paid Mortgage Insurance (LPMI) is a one-time single premium paid by the lender. In turn, the lender increases the borrower's interest rate to cover the cost of the mortgage insurance paid on their behalf.
True
Most loans do not have a prepayment penalty.
True
On an FHA loan, the subject property must be connected to public water and/or sewer facilities if they are available and connection is feasible.
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
Rate Adjustments listed on a Mortgage Insurance company's rate card are added to or subtracted from the monthly MI factor.
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
Sole Ownership is an acceptable manner in which title may be held.
True
The ATR and QM rules state that lenders must make a reasonable, good-faith determination of a borrower's ability to repay before consummation of the mortgage loan.
True
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% / 12.
True
To sympathize with a customer lets them know you identify with the way they feel.
True
VA requires connection to a public or community water/sewer disposal system if required by local building, planning, or health authorities.
True
You should review files immediately and give feed back to the LO regarding their file.
True
On an ARM, redisclosure of the Truth in Lending is required if the APR changes more than ____%?
.25
A veteran may exchange a portion of their entitlement for cash.
False
Churning schemes usually involve falsified down payment amounts and falsified appraisals.
False
Closing dates and disbursement dates will be the same date on a refinance loan.
False
A borrower who has made an offer on a property and has provided their pay stubs, bank statements and W2s would be issued a Commitment Letter.
True
A co-borrower must be listed on the sales contract.
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 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 simultaneous second mortgage is obtained at the same time as a first mortgage.
True
A veteran and a spouse may qualify together for 100% financing on a VA loan.
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
DU does not consider non-occupant income as qualifying income.
True
FNMA and FHLMC are fully backed by the U.S. Government.
True
If a borrower qualifies for an agency loan of $215,000, FHLMC is a viable loan option.
True
If a borrower qualifies for an agency loan of $325,000, FNMA is a viable loan 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
Income from real estate or royalties can be located on Schedule E part 1 of a borrower's personal tax return.
True
Interest and dividend income for a borrower can be located on Schedule B of their tax returns.
True
Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC)
True
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)
$1,740.00
What is not part of the ABCD's of an effective LO/Processor meeting?
Deliver
What are the four General Styles of Communication?
Expresser, Relater, Driver, Analytic
A HUD Consultant would not be required for an FHA 203(k) Standard program.
False
A borrower can use a credit card to pay for their required down payment.
False
A borrower requesting a jumbo loan will qualify for an agency loan
False
A 2/1 buydown typically costs 2.5 discount points. Give or take .25%.
True
A 3/1 ARM will have an initial fixed rate for 3 years, then adjust annually.
True
When should you return a call?
Within the same day
