NAMU - Certification Master Mortgage
Underwriter||QUESTIONS AND ANSWERS |
2026 UPDATE | WITH COMPLETE
SOLUTION!!
T or F: Non-traditional credit may be used as a compensating factor for
a poor credit history. - ANSWERS-False - nothing overcomes bad credit
unless they have cleaned it up over the last 2 years
Uncorroborated withdrawals or payments on a bank statement may
indicate ________________________. - ANSWERS-Undisclosed debt
A single deposit that exceeds 50% of the total monthly qualifying
income for the loan is considered a __________________________. -
ANSWERS-Large deposit - that must be documented
A FNMA 1004D Appraisal Form can be used for either repair
inspections or __________________________________. - ANSWERS-
Recertification of value - if appraisal will be older than 120 days at
closing
T or F: Funds in a foreign account are acceptable as long as they are
translated to US dollars. - ANSWERS-False - must be transferred into a
US account
,What occupancy type does not allow Gift Funds? - ANSWERS-
Investment
An existing second mortgage on a refinance requires a copy of the
Note, Security Deed, and _______________________________________. -
ANSWERS-Executed Subordination Agreement
What is the maximum IPC allowed for an investment property? -
ANSWERS-2% - on all investments regardless of LTV
T or F: An appraisal waiver may be granted on a 2-4 Unit Property. -
ANSWERS-False - cannot use an appraisal waiver on multi-unit
properties
The ________ __________ provides a solid foundation for assessing the risk
of a manually underwritten loan. - ANSWERS-Eligibility Matrix
T or F: Income from royalties is reported on the 1040 Schedule C. -
ANSWERS-False - royalties are reported on Schedule E
Can a borrower with a Deed-In-Lieu 3 years ago obtain a new financing
if there are no extenuating circumstances? - ANSWERS-No - there is a
4 year waiting period
The FNMA Form __________ is used to analyze income from tax returns. -
ANSWERS-1084
, The underwriter must evaluate the overall level of serious risk in each
application by taking into consideration any ____________ of risk factors.
- ANSWERS-Layering - the more layers, the more risk
The underwriter's job is to _________________________. - ANSWERS-Protect
the lender from loss
T or F: You may accept a payment plan on an IRS Tax Lien. -
ANSWERS-False - if a lien is already filed it must be paid and released
Rental income can be verified with the following documents: 1040,
Schedule E, Rental Agreement, or ______________________________. -
ANSWERS-Appraisal Form 1007
What are the two tax return types that are required for a borrower who
is 25% owner of a S-Corporation? - ANSWERS-IRS 1040 Schedule E and
IRS 1120S K-1
Name the three methods of establishing value on an appraisal. -
ANSWERS-Sales Comparison, Cost Approach, Income Approach
The appraiser must provide an accurate and reliable opinion of value
that reflects the market value, condition, and ____________________. -
ANSWERS-Marketability - of the property
Underwriter||QUESTIONS AND ANSWERS |
2026 UPDATE | WITH COMPLETE
SOLUTION!!
T or F: Non-traditional credit may be used as a compensating factor for
a poor credit history. - ANSWERS-False - nothing overcomes bad credit
unless they have cleaned it up over the last 2 years
Uncorroborated withdrawals or payments on a bank statement may
indicate ________________________. - ANSWERS-Undisclosed debt
A single deposit that exceeds 50% of the total monthly qualifying
income for the loan is considered a __________________________. -
ANSWERS-Large deposit - that must be documented
A FNMA 1004D Appraisal Form can be used for either repair
inspections or __________________________________. - ANSWERS-
Recertification of value - if appraisal will be older than 120 days at
closing
T or F: Funds in a foreign account are acceptable as long as they are
translated to US dollars. - ANSWERS-False - must be transferred into a
US account
,What occupancy type does not allow Gift Funds? - ANSWERS-
Investment
An existing second mortgage on a refinance requires a copy of the
Note, Security Deed, and _______________________________________. -
ANSWERS-Executed Subordination Agreement
What is the maximum IPC allowed for an investment property? -
ANSWERS-2% - on all investments regardless of LTV
T or F: An appraisal waiver may be granted on a 2-4 Unit Property. -
ANSWERS-False - cannot use an appraisal waiver on multi-unit
properties
The ________ __________ provides a solid foundation for assessing the risk
of a manually underwritten loan. - ANSWERS-Eligibility Matrix
T or F: Income from royalties is reported on the 1040 Schedule C. -
ANSWERS-False - royalties are reported on Schedule E
Can a borrower with a Deed-In-Lieu 3 years ago obtain a new financing
if there are no extenuating circumstances? - ANSWERS-No - there is a
4 year waiting period
The FNMA Form __________ is used to analyze income from tax returns. -
ANSWERS-1084
, The underwriter must evaluate the overall level of serious risk in each
application by taking into consideration any ____________ of risk factors.
- ANSWERS-Layering - the more layers, the more risk
The underwriter's job is to _________________________. - ANSWERS-Protect
the lender from loss
T or F: You may accept a payment plan on an IRS Tax Lien. -
ANSWERS-False - if a lien is already filed it must be paid and released
Rental income can be verified with the following documents: 1040,
Schedule E, Rental Agreement, or ______________________________. -
ANSWERS-Appraisal Form 1007
What are the two tax return types that are required for a borrower who
is 25% owner of a S-Corporation? - ANSWERS-IRS 1040 Schedule E and
IRS 1120S K-1
Name the three methods of establishing value on an appraisal. -
ANSWERS-Sales Comparison, Cost Approach, Income Approach
The appraiser must provide an accurate and reliable opinion of value
that reflects the market value, condition, and ____________________. -
ANSWERS-Marketability - of the property
