XINNIX FINAL EXAM QUESTIONS &
VERIFIED COMPLETE PASSED
ANSWERS NEWEST VERSION
On an FHA loan the upfront MIP should be included when calculating cash-to-close. -
Correct Answer ✔✔ False
The borrower must have 5% of their own funds when putting 15% down on a primary
residence. (FNMA) - Correct Answer ✔✔ False
A 3-Year ARM adjusts every 3 years - Correct Answer ✔✔ True
A Loan Officer can locate the summary of the eligibility requirements for a loan to be
sold to a specific lender/investor in the lender specs. - Correct Answer ✔✔ False
A HELOC loan has an interest only payment - Correct Answer ✔✔ True
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of
pay periods per year - Correct Answer ✔✔ False
FHA Case Numbers are tied to the property, not the borrower. - Correct Answer ✔✔
True
Judgments and tax liens are required to be paid off at or prior to loan closing.
(FNMA/FHLMC) - Correct Answer ✔✔ True
Unreimbursed business expenses can be located on Form 2106 of a borrower's
personal tax return. - Correct Answer ✔✔ True
HOA dues are included in the PITI calculation - Correct Answer ✔✔ False
A borrower's brother would like to give her money to help towards the down payment of
her new house. This would be considered.... - Correct Answer ✔✔ A gift from a relative
and would require a gift letter, as well as proof that the funds have been transferred to
the borrower's account.
VA sets their own maximum loan limits. - Correct Answer ✔✔ False
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12 -
Correct Answer ✔✔ True
, Redisclosure of the Truth in Lending is required if the PAR changes more than _____%
on a fixed rate loan? - Correct Answer ✔✔ .125
If a veteran has previously used their VA entitlement and it has not yet been restored,
their COE may show an available amount which is less that the VA maximum allowable
entitlement - Correct Answer ✔✔ True
A room addition is allowed under the FHA 203(k) Limited program. - Correct Answer
✔✔ False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-
borrower per FHLMC guidelines is ______________. - Correct Answer ✔✔ 35/43
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a
margin of 2.5%. What would the borrower's interest rate be for year 2 if the index is at
4.25%? - Correct Answer ✔✔ 6.25%
The builder must provide an appraisal certificate to the mortgage company on an FHA
new construction loan prior to closing. - Correct Answer ✔✔ False
All of the following documents must be provided by the builder to the mortgage
company on an FHA new construction loan prior to the loan being cleared to close
EXCEPT: - Correct Answer ✔✔ Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation
Certificate
After the borrower submits a complete loan application, the LE must be delivered or
placed in the mail within how many days? - Correct Answer ✔✔ 3 business days
Which document is not necessary for the builder provide to the mortgage company on
an FHA new construction loan prior to the loan being cleared to close? - Correct Answer
✔✔ Appraisal Certificate
Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for
overtime (more than 40 hours per week) and has been averaging 50 hours every week,
since starting with the company five years ago. Her current paystub from 7/15 of this
year shows a YTD gross income of $26,260. Her W2 from last year shows $48,048 and
the year before shows $46,116.
What is the monthly base income and monthly overtime income that would be entered
on the 1003? (Overtime not guaranteed) - Correct Answer ✔✔ $3033/$915
Choose the correct relationship between the Name of the Report and mortgage interest
rate tendencies. - Correct Answer ✔✔ When the CPI goes UP, Rates tend to go UP
When the GDP goes DOWN, rates tend to go DOWN
VERIFIED COMPLETE PASSED
ANSWERS NEWEST VERSION
On an FHA loan the upfront MIP should be included when calculating cash-to-close. -
Correct Answer ✔✔ False
The borrower must have 5% of their own funds when putting 15% down on a primary
residence. (FNMA) - Correct Answer ✔✔ False
A 3-Year ARM adjusts every 3 years - Correct Answer ✔✔ True
A Loan Officer can locate the summary of the eligibility requirements for a loan to be
sold to a specific lender/investor in the lender specs. - Correct Answer ✔✔ False
A HELOC loan has an interest only payment - Correct Answer ✔✔ True
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of
pay periods per year - Correct Answer ✔✔ False
FHA Case Numbers are tied to the property, not the borrower. - Correct Answer ✔✔
True
Judgments and tax liens are required to be paid off at or prior to loan closing.
(FNMA/FHLMC) - Correct Answer ✔✔ True
Unreimbursed business expenses can be located on Form 2106 of a borrower's
personal tax return. - Correct Answer ✔✔ True
HOA dues are included in the PITI calculation - Correct Answer ✔✔ False
A borrower's brother would like to give her money to help towards the down payment of
her new house. This would be considered.... - Correct Answer ✔✔ A gift from a relative
and would require a gift letter, as well as proof that the funds have been transferred to
the borrower's account.
VA sets their own maximum loan limits. - Correct Answer ✔✔ False
The monthly MI for an FHA loan is calculated by BASE Loan Amount x .85% /12 -
Correct Answer ✔✔ True
, Redisclosure of the Truth in Lending is required if the PAR changes more than _____%
on a fixed rate loan? - Correct Answer ✔✔ .125
If a veteran has previously used their VA entitlement and it has not yet been restored,
their COE may show an available amount which is less that the VA maximum allowable
entitlement - Correct Answer ✔✔ True
A room addition is allowed under the FHA 203(k) Limited program. - Correct Answer
✔✔ False
The maximum allowable ratios for an owner-occupant when using a non-occupant co-
borrower per FHLMC guidelines is ______________. - Correct Answer ✔✔ 35/43
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a
margin of 2.5%. What would the borrower's interest rate be for year 2 if the index is at
4.25%? - Correct Answer ✔✔ 6.25%
The builder must provide an appraisal certificate to the mortgage company on an FHA
new construction loan prior to closing. - Correct Answer ✔✔ False
All of the following documents must be provided by the builder to the mortgage
company on an FHA new construction loan prior to the loan being cleared to close
EXCEPT: - Correct Answer ✔✔ Appraisal Certificate
MUST BE PROVIDED: Certificate of Occupancy, Builder's 1-Year Warranty, Insulation
Certificate
After the borrower submits a complete loan application, the LE must be delivered or
placed in the mail within how many days? - Correct Answer ✔✔ 3 business days
Which document is not necessary for the builder provide to the mortgage company on
an FHA new construction loan prior to the loan being cleared to close? - Correct Answer
✔✔ Appraisal Certificate
Ms. Armstrong is paid an hourly wage of $17.50. She receives time and a half for
overtime (more than 40 hours per week) and has been averaging 50 hours every week,
since starting with the company five years ago. Her current paystub from 7/15 of this
year shows a YTD gross income of $26,260. Her W2 from last year shows $48,048 and
the year before shows $46,116.
What is the monthly base income and monthly overtime income that would be entered
on the 1003? (Overtime not guaranteed) - Correct Answer ✔✔ $3033/$915
Choose the correct relationship between the Name of the Report and mortgage interest
rate tendencies. - Correct Answer ✔✔ When the CPI goes UP, Rates tend to go UP
When the GDP goes DOWN, rates tend to go DOWN
