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