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