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