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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. The most probable price a property should bring in a competitive and open market - with the buyer and seller each acting prudently and knowledgably
title commitment
transmittal summary
home inspection
market value
2. Commitment to issue a title insurance policy - provided certain conditions are cleared prior to closing
home inspection
income (capitalization) approach
title commitment
Chapter 7 bankruptcy
3. 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
comparable sale consideration requirements
service release premium
economic obsolescence
replacement cost
4. 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
functional obsolescence
buyback (repurchase) agreement
capitalization rate
sales comparison approach
5. 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
market value
Chapter 13 bankruptcy
income (capitalization) approach
cost approach
6. Collateral - Capital - Capacity - Character (Credit history)
7. 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
Chapter 13 bankruptcy
Four C's of underwriting
an applicant that is rejected or offered other terms can...
home inspection
8. The process of deciding whether to make a loan based on credit - employment - assets and other factors
an applicant that is rejected or offered other terms can...
cost approach
underwriting
credit history criteria
9. Equal to the cost to replace or reproduce the improvements less depreciation
cost approach
major credit bureaus
depreciated value
appraisal
10. Bases the value of a property on the prices paid for similar - or comparable - properties in the area that have recently sold
market value
Loan Prospector
underwriting
sales comparison approach
11. 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
sales comparison approach
replacement cost
title insurance policy
cost approach
12. Involves liquidation of assets to cancel debts so a person can start fresh
reproduction cost
functional obsolescence
replacement cost
Chapter 7 bankruptcy
13. Last two years the most important
capitalization rate
Chapter 13 bankruptcy
market value
credit history criteria
14. Results from loss of functionality due to basic construction techniques used - as well as inadequacy - outdatedness - or overadequacy in a building
title commitment
functional obsolescence
gross rent multiplier
title insurance policy
15. Used to appraise properties that produce rental income
reproduction cost
buyback (repurchase) agreement
income (capitalization) approach
economic obsolescence
16. 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
capitalization rate
an applicant that is rejected or offered other terms can...
comparable sale consideration requirements
gross rent multiplier
17. The spread between the interest rate in the loan and the par interest rate paid by the purchaser of a sold loan
buyback (repurchase) agreement
service release premium
Chapter 13 bankruptcy
cost approach
18. 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
capitalization rate
market value
comparative market analysis
replacement cost
19. Net adjustments should not exceed 15% of the sales price - gross adjustments should not exceed 25% of the sales price
service release premium
major credit bureaus
sales comparison approach
comparable sale consideration requirements
20. 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
Chapter 7 bankruptcy
capitalization rate
appraisal
Loan Prospector
21. That have not applied the Home Valuation Code of Conduct to those loans
Loan Prospector
Fannie Mae and Freddie Mac will not purchase conventional single-family mortgages from lenders...
comparable sale consideration requirements
Four C's of underwriting
22. 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.
home inspection
title commitment
Chapter 7 bankruptcy
buyback (repurchase) agreement
23. The present cost of constructing a new substitute structure that is an exact replica of the existing structure
underwriting
comparable sale consideration requirements
title insurance policy
reproduction cost
24. Freddie Mac's automated underwriting system
Loan Prospector
income (capitalization) approach
buyback (repurchase) agreement
cost approach
25. Results from factors outside and surrounding the property - such as zoning - blight - high taxes - and pollution - and is - therefore - almost always incurable
reproduction cost
economic obsolescence
credit history criteria
title commitment
26. Purpose is to report on structural defects
Loan Prospector
transmittal summary
reproduction cost
home inspection
27. Involves implementing a payment plan over three to five years to pay off the debts
Chapter 13 bankruptcy
home inspection
comparable sale consideration requirements
Fannie Mae and Freddie Mac will not purchase conventional single-family mortgages from lenders...
28. Fannie Mae's automated underwriting system
comparable sale consideration requirements
title commitment
Desktop Underwriter
cost approach
29. Experian FICO - Equifax BEACON - TransUnion EMPIRICA
functional obsolescence
major credit bureaus
capitalization rate
title commitment
30. A summary of the information on the application for the underwriter
title insurance policy
major credit bureaus
an applicant that is rejected or offered other terms can...
transmittal summary