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42 Cards in this Set
- Front
- Back
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What wouldn't be found on a credit report |
Payments made to creditors who do not send data to a repository Ex. Land contract |
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Why would a borrower pay discount points in conjunction with their loan transaction |
To lower their note rate |
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If someone receives bi-weekly pay what is the equation to figure out monthly gross income |
Bi-weekly pay x 26 / 12 |
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Bankruptcy info will remain on a consumer's credit report for |
10 years |
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What personal information is a borrower asked to provide voluntarily on a loan application |
Race, ethnicity, sex |
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If someone is paid 100% commission what type of documentation would you ask for them to provide as proof of income for loan qualification |
Tax returns for the past two years |
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What is the equation to find out monthly gross when given the dollar per hour and the hours per week |
$$/hr x hrs/week x 52 / 12 |
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If someone is paid semi monthly how many times a month do they get paid |
Twice |
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Which of the real estate appraisal approaches considers the value of the property and any improvements made |
Cost approach |
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On which approach do appraisers place the most weight in reaching a value conclusion for conforming loans |
Sales comparison approach |
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Appraisals that use the sales comparison approach include what kind of comparison |
Comparison of value for three similar recently sold properties |
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According to conforming guidelines what percent may an appraiser may make adjustments to comparables in a residential appraisal |
15% |
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What document would an underwriter rely on for detailed information concerning the collateral for a mortgage loan |
The property appraisal |
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The uniform residential appraisal report is commonly known as the |
1004 |
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An agreement a borrower makes with a lender allowing their interest rate to rise or fall with the market is called |
A float agreement |
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What is true in regards to MIP and FHA loans |
MIP is paid upfront on all FHA loans |
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VA loans require a funding fee always except when |
The veteran is disabled |
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Title insurance is required for all loans by the |
Lender |
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DTI standard for an FHA loan is |
43% |
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The standard DTI for a VA loan is |
41% |
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In order for a home loan to be a qualified mortgage the debt to income may not exceed |
43% |
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The process of allowing a broker to originate and close a loan in their name before transferring the loan to the lender providing the funds is called |
Table funding |
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When would a borrower be required to obtain flood insurance |
Appraiser indicates the property is located in a flood zone |
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Why would a mortgage lender analyze borrowers credit capacity |
To determine if the borrower is financially capable of repaying the loan |
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What percent is a point |
1% of the loan amount |
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When determining whether a potential borrower has sufficient income and assets to afford a mortgage loan, the lender may never rely on |
Equity |
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The disadvantage of holding an interest in property as a leasehold instead of holding it in a fee simple is that |
Holding property as a leasehold does not give the consumer unconditional power of disposition of the property during their life and the ability to pass the property to heirs |
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Where can you find the use of a CHARM |
In an ARM loan |
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Tangible net benefit refers to |
The benefit that a consumer will attain a result of a transaction |
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Which loan program does not allow for a LTV of 100% |
FHA |
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What must remain in place throughout the life of the loan if the beginning loan balance is higher than 90% of its appraised value |
MIP |
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The down payment requirement for a VA loan can be as little as |
0% |
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Which is a type of standard title policy that may be ordered by the title agent |
ALTA |
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According to the 2013 amendment to TILA related to LO compensation requirements, a LO must retain records sufficient to evidence all compensation it pays to a LO for how many years after the date of payment. |
3 years |
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Compliance with what rules requires the development and implementation of an identity theft program. |
Red flag rules |
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The income approach is most often used for what type of appraisal |
Commercial, researches rental income |
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Compliance with what law requires the development of processes and procedures to ensure consumer info is kept private and secure |
Gramm-bliley leach act |
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The minimum down payment on a FHA loan with a FICO of at least 580 |
3.5% |
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A veteran needs two documents to show eligibility what are they? |
Certificate of eligibility DD-214 |
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Who is in charge of enforcing the ATR rules |
CFPB |
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At closing who issues a clear to close |
Lender |
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What is not required to be included on the closing disclosure |
Property appraisal value |
