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Test your basic knowledge |
Mortgage Processing Underwriting
Start Test
Study First
Subjects
:
personal-finance
,
industries
,
business-skills
Instructions:
Answer 30 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Request a statement of the reasons for the adverse action from the lender and obtain a copy of his credit report from the credit bureau - if the adverse action was based on information in that report
service release premium
home inspection
credit history criteria
an applicant that is rejected or offered other terms can...
2. A summary of the information on the application for the underwriter
cost approach
transmittal summary
credit history criteria
comparative market analysis
3. The process of deciding whether to make a loan based on credit - employment - assets and other factors
title insurance policy
home inspection
underwriting
appraisal
4. Bases the value of a property on the prices paid for similar - or comparable - properties in the area that have recently sold
depreciated value
Desktop Underwriter
gross rent multiplier
sales comparison approach
5. Freddie Mac's automated underwriting system
income (capitalization) approach
appraisal
Loan Prospector
Fannie Mae and Freddie Mac will not purchase conventional single-family mortgages from lenders...
6. The present cost of constructing a new substitute structure that is an exact replica of the existing structure
underwriting
reproduction cost
major credit bureaus
appraisal
7. Results from loss of functionality due to basic construction techniques used - as well as inadequacy - outdatedness - or overadequacy in a building
an applicant that is rejected or offered other terms can...
credit history criteria
cost approach
functional obsolescence
8. Involves implementing a payment plan over three to five years to pay off the debts
Chapter 13 bankruptcy
reproduction cost
an applicant that is rejected or offered other terms can...
replacement cost
9. Equal to the cost to replace or reproduce the improvements less depreciation
Loan Prospector
depreciated value
service release premium
Four C's of underwriting
10. A written report of an appraiser's informed - objective opinion or estimate of the market value of the property that is security for the loan - as of a specified date
gross rent multiplier
comparative market analysis
Four C's of underwriting
appraisal
11. That have not applied the Home Valuation Code of Conduct to those loans
Fannie Mae and Freddie Mac will not purchase conventional single-family mortgages from lenders...
cost approach
underwriting
transmittal summary
12. Used to appraise properties that produce rental income
Loan Prospector
income (capitalization) approach
market value
home inspection
13. Purpose is to report on structural defects
title insurance policy
Desktop Underwriter
home inspection
depreciated value
14. Fannie Mae's automated underwriting system
Desktop Underwriter
an applicant that is rejected or offered other terms can...
major credit bureaus
functional obsolescence
15. Last two years the most important
market value
an applicant that is rejected or offered other terms can...
Fannie Mae and Freddie Mac will not purchase conventional single-family mortgages from lenders...
credit history criteria
16. Experian FICO - Equifax BEACON - TransUnion EMPIRICA
reproduction cost
comparable sale consideration requirements
service release premium
major credit bureaus
17. Involves liquidation of assets to cancel debts so a person can start fresh
depreciated value
functional obsolescence
appraisal
Chapter 7 bankruptcy
18. Multiplying a property's estimated monthly rent by an appropriate multiplier - the multiplier is derived by dividing the sales prices of comparable houses that have sold by their monthly rents
underwriting
Loan Prospector
market value
gross rent multiplier
19. The most probable price a property should bring in a competitive and open market - with the buyer and seller each acting prudently and knowledgably
capitalization rate
comparable sale consideration requirements
market value
Chapter 7 bankruptcy
20. Estimates the value of the land and the depreciated value of the improvements on the land separately and adds the two values to arrive at an estimate of the property's total value - most often used for new construction and churches and public service
Four C's of underwriting
cost approach
service release premium
transmittal summary
21. Results from factors outside and surrounding the property - such as zoning - blight - high taxes - and pollution - and is - therefore - almost always incurable
appraisal
buyback (repurchase) agreement
economic obsolescence
Chapter 7 bankruptcy
22. Commitment to issue a title insurance policy - provided certain conditions are cleared prior to closing
underwriting
replacement cost
title commitment
comparative market analysis
23. Net adjustments should not exceed 15% of the sales price - gross adjustments should not exceed 25% of the sales price
comparable sale consideration requirements
appraisal
Fannie Mae and Freddie Mac will not purchase conventional single-family mortgages from lenders...
Chapter 13 bankruptcy
24. The rate of return the new owner can expect to receive - including an annual rate of return desired on the investment - and a rate of return of the investment necessary to recapture the depreciation of the improvements
home inspection
capitalization rate
service release premium
gross rent multiplier
25. Provides that the investor may return the loan to the originating lender if the borrowers default within a specified period of time; there is evidence of loan fraud; the loan does not comply with regulatory requirements.
appraisal
buyback (repurchase) agreement
transmittal summary
cost approach
26. The present cost of constructing a new substitute structure equal to the existing structure in quality and utility - but using current construction methods - materials - design and layout
replacement cost
home inspection
service release premium
title commitment
27. The spread between the interest rate in the loan and the par interest rate paid by the purchaser of a sold loan
service release premium
reproduction cost
market value
appraisal
28. Used by a real estate agent to estimate an appropriate sales price for an owner wanting to list his property for sale - is not acceptable as an appraisal for underwriting purposes
Fannie Mae and Freddie Mac will not purchase conventional single-family mortgages from lenders...
an applicant that is rejected or offered other terms can...
comparative market analysis
title insurance policy
29. The title company agrees to pay the insured a specific amount for a loss resulting from a claim caused by a defect in the title that had not been excluded in the policy
replacement cost
capitalization rate
transmittal summary
title insurance policy
30. Collateral - Capital - Capacity - Character (Credit history)