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Mortgage Processing Underwriting

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 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






2. A summary of the information on the application for the underwriter






3. Experian FICO - Equifax BEACON - TransUnion EMPIRICA






4. 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






5. Results from loss of functionality due to basic construction techniques used - as well as inadequacy - outdatedness - or overadequacy in a building






6. Purpose is to report on structural defects






7. 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






8. Commitment to issue a title insurance policy - provided certain conditions are cleared prior to closing






9. 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






10. The present cost of constructing a new substitute structure that is an exact replica of the existing structure






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






12. Fannie Mae's automated underwriting system






13. Last two years the most important






14. 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






15. Collateral - Capital - Capacity - Character (Credit history)


16. Equal to the cost to replace or reproduce the improvements less depreciation






17. Net adjustments should not exceed 15% of the sales price - gross adjustments should not exceed 25% of the sales price






18. Freddie Mac's automated underwriting system






19. Results from factors outside and surrounding the property - such as zoning - blight - high taxes - and pollution - and is - therefore - almost always incurable






20. Involves implementing a payment plan over three to five years to pay off the debts






21. That have not applied the Home Valuation Code of Conduct to those loans






22. Used to appraise properties that produce rental income






23. 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






24. Involves liquidation of assets to cancel debts so a person can start fresh






25. The spread between the interest rate in the loan and the par interest rate paid by the purchaser of a sold loan






26. Bases the value of a property on the prices paid for similar - or comparable - properties in the area that have recently sold






27. The most probable price a property should bring in a competitive and open market - with the buyer and seller each acting prudently and knowledgably






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.






29. 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






30. The process of deciding whether to make a loan based on credit - employment - assets and other factors