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