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