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