Mortgage Processing Assesment Test

Created by Danamp

Question or Hint Answer or Word
  1. What is the Fannie Mae form 1003, used for? Loan Application
  2. A summary of the information on the application for the underwriter is? Transmittal Summary (wrong answers: Appraisal , Service release premium , Chapter 13 bankruptcy )
  3. The process of deciding whether to make a loan based on credit, employment assets and other factors is? Underwriting Decision (wrong answers: Depreciated Value, Market Value, Transmittal Summary)
  4. Who pays for title insurance on a purchase contract? Negotiable (wrong answers: Seller , Buyer, Title, No one - it's free)
  5. If a loan application is approved, under ECOA rules and regulations, when must a copy of the appraisal be provided to the borrower? 3 business days (wrong answers: 3 calendar days , 5 business days , 30 business days )
  6. The last two years of ______________is most important. Credit history criteria (wrong answers: Major credit bureaus, Chapter 13 bankruptcy, Chapter 7 bankruptcy)
  7. What is the form 4506-T used for? To order business and personal IRS transcripts (wrong answers: Verify social security number, Verify current address, Verify employment)
  8. Fannie Mae's automated underwriting system is called? Desktop Underwriter (wrong answers: Loan Prospector, Gross Rent Multiplier, Major Credit Bureaus)
  9. List the 6 items that constitue an application under TRID/HMDA: Name, income, social, property address, estimated value of property, mortgage loan amount
  10. Lisa is a VP and earns an annual salary of $325,000.00, what is Lisa's monthly pay? $27,083.33
  11. List the formula used to calculate Lisa's monthly earnings in question #10: $325,000.0/12 months
  12. Once you have all the necessary information to make a credit decision, you must communicte this to the applicant within ______days. 30 days (wrong answers: 20 days , 90 days, 45 days , 10 days)
  13. How many pay periods are in Bi-Weekly pay? 26 (wrong answers: 30, 25, 28, 24)
  14. How many pay periods are in Semi-Monthly pay? 24 (wrong answers: 30, 25, 28, 26)
  15. Cameron earns $32.75/hourly and works 40 hours a week, what is Cameron's monthly pay? $5,676.67
  16. What is the purpose a flood certificate? To verify if the home is in a flood zone and if flood insurance is needed.
  17. If you have a W-2 borrower with a two year history of receipt of "Per Diem" pay, can this pay be used to assist in qualifying the borrower? Only if you can prove that the pay has been taxed (wrong answers: No, this type of paid is not allowed, Yes, you can use any income reporting for the applicant, More information needed)
  18. A Lead Based Paint Addendum will need to accompany the purchase contract if the home was constructed prior to: 1978 (wrong answers: 1999, 1981, 1963)
  19. While calculating income, you realize the employer paystub does not list the year to date pay. What would you need to request from the employer to complete your income calculation? A written verification of employment with year to date pay (wrong answers: Verbal verification of year to date pay, Call the borrower and verify the year to date pay, More information needed , You guess the year to date based on other information /documents collected)
  20. Manually calculate the DTI for Sam based on the following information - Sam earns semi-monthly gross income of $5000.00 and has $1,000.00 of monthly debts: 10% (wrong answers: 20%, 15%, 40%)
  21. List the formula used to manually calculate Sam's DTI:
  22. Which approach estimates the value of the land, 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? Cost Approach (wrong answers: Sales Approach, Underwriting Approach, Sales Comparison Approach)
  23. What does HPML stand for? High Priced Mortgage Loan (wrong answers: Housing Protection Mortgage Lenders, HUD Program for Mortgage Lenders, HUD Pricing Minimum Level)
  24. Typically, If a K-1 indicates more than ___________% ownership, the borrower will need to provide business tax returns for review. 25% (wrong answers: 75%, 50%, 17%)
  25. When using "other income" such as alimony, child support, notes receivable, how long should that income be expected to continue in order to use it for qualifying? 3 years (wrong answers: 1 year, 6 months, 2 years)

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