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