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