Gold Coast Chapter 13
What process is used by loan underwriters to determine if an applicant has a satisfactory credit
risk. - ANSQualifying
What are two ratios under which a borrower must qualifying order to receive a FHA insured
mortgage loan - ANSHousing expense and monthly gross income ratios
In order to qualify for and SH a 203B, insured mortgage, loan, and applicants housing expense
ratio cannot exceed what percentage? - ANS31%
Which group of financial institutions traditionally preferred to make short term loans for
construction? - ANScommercial banks
Which of the following statements best describes the secondary mortgage market? - ANS(b) It is
where loans originated in the primary market are sold.
How are mortgage loan originators usually compensated for their services? - ANSFinder's fee or
commission
With an adjustable rate mortgage, if a payment is not sufficient to cover the interest amount due,
the unpaid interest amount may be added to the loan balance. What is the term used to
describe this situation? - ANSnegative amortization
A borrower has a 15 year loan with monthly payments that remain the same amount for the
entire loan. Which type of mortgage repayment plan does the borrower have? - ANSLevel
payment
Which of the following statements regarding types of mortgage loans is correct? - ANSThe FHA
insures loans. VA loans are guaranteed.
Interest rates for federal housing administration mortgages are determined by which of the
following? - ANSmarket
The federal national mortgage association was originally formed to purchase what type of
loans? - ANSFHA
If a mortgage loan payment consist of interest, only, what term refers to the final payment that
includes the full amount borrowed? - ANSBalloon payment
What process is used by loan underwriters to determine if an applicant has a satisfactory credit
risk. - ANSQualifying
What are two ratios under which a borrower must qualifying order to receive a FHA insured
mortgage loan - ANSHousing expense and monthly gross income ratios
In order to qualify for and SH a 203B, insured mortgage, loan, and applicants housing expense
ratio cannot exceed what percentage? - ANS31%
Which group of financial institutions traditionally preferred to make short term loans for
construction? - ANScommercial banks
Which of the following statements best describes the secondary mortgage market? - ANS(b) It is
where loans originated in the primary market are sold.
How are mortgage loan originators usually compensated for their services? - ANSFinder's fee or
commission
With an adjustable rate mortgage, if a payment is not sufficient to cover the interest amount due,
the unpaid interest amount may be added to the loan balance. What is the term used to
describe this situation? - ANSnegative amortization
A borrower has a 15 year loan with monthly payments that remain the same amount for the
entire loan. Which type of mortgage repayment plan does the borrower have? - ANSLevel
payment
Which of the following statements regarding types of mortgage loans is correct? - ANSThe FHA
insures loans. VA loans are guaranteed.
Interest rates for federal housing administration mortgages are determined by which of the
following? - ANSmarket
The federal national mortgage association was originally formed to purchase what type of
loans? - ANSFHA
If a mortgage loan payment consist of interest, only, what term refers to the final payment that
includes the full amount borrowed? - ANSBalloon payment
