Test Bank for Mortgage loan Originator - Questions Fully Solved Latest Update 2025
Index and margin - Answers What is used to determine the interest rate chang on an ARM?
A loan with a balloon payment provision - Answers Which of the following loan types is best described
as a loan with a payment schedule made up of a series of small periodic payments and a larger lump
sum due upon maturity?
Convention/conforming loans - Answers Fannie Mae and Freddie Mac securitize what type of mortgage
loans?
FHA Loans - Answers Which of the following types of loans offers backing from the federal government
without using taxpayer dollars
To replenish lenders funds for new loans by purchasing loans that lenders have already funded and
closed. - Answers What is Fannie Mae's primary function in the secondary market?
Most lending transactions other than those for reverse mortgages and open-ended loans - Answers The
ability to repay rule applies to
The borrower must have a debt-to-income ratio of no more that 43% - Answers Community Mortgage
Bank (CMB) is a small creditor that holds the loans it originates in its portfolio until they are paid in full.
CMB Tries to limit its transaction to those for qualified mortgages. In a balloon payment QM transaction,
the transaction must neet all the following criteria, except:
"APR" - Answers Annual percentage rate
Race,ethnicity and sex - Answers Which of the following pieces of personal information is a borrower
asked to provide voluntarily on the loan application?
A property is valued at $495,000. This is a first and second mortgage with a 90% CLTV. The first
mortgage has 78% LTV. What is the approximate amount of the second mortgage? - Answers $59,400
enter equation
The veteran is disabled - Answers VA loans requirs a funding fee under all of the following conditions,
except:
43%/41% - Answers The DRI standard for an FHA loan is ____, and the standard for a VA loan is _______.
Sue Johnson is a receptionist for a construction company. She receives bi weekly pay in the amount of
$1,153.85. What is her monthly qualifying income? - Answers $2500.00
1153.85x 26=30,000
/12 =2500
, 43% - Answers In order for a home loan to be a qualified mortgage, the debt to income ratio may not
exceed.
Comparison of the value for three similar, recently sold properties - Answers Appraisals that use the
sales comparison approach include which of the followin?
A home purchase - Answers In which of the followinf transactions must the CFPB's "your home loan tool
kit" booklet be provides?
Joan Johnson is a salesperson who is paid 100% commission. What type of documentation would you
ask her to provide as proof of her income for loan qualification? - Answers Tax returns for the past two
years.
Mr. Cyril Cagney is paid $1,800 semi monthly. What is his monthly qualifying income? - Answers &3600
include equation
Bankruptcy information will remain on a consumers credit report for - Answers Ten years
A couple has qualified for a $245,600 loan. They are told that the broker fee will cost two points. What is
the dollar amount of the broker fee? - Answers $4,912 include equation
The VA guarantee covers up to what amount of the veterans entitlement? - Answers Four times the
amount of the veterans entitlement
A borrower has applied for a refinance on her property valued at $235,000. She currently has a HELLC
with a $47,000 limit and currently owes $25,850. The borrower has applied for a first mortgage of
$164,500. Which of the following LTV, CLTV, and HLTV are accurate based on this information ? -
Answers 70%/81%/90%
FEMA's National Flood Insurance Program - Answers Which if the following is avaliable to a borrower
when the subject property is located in a flood zone and flood insurance is required?
PMI is used to serve what purpose? - Answers To cover the risk of lending to a consumer without
sufficient down payment
Why would a mortgage lender analyze a borrower's credit capacity? - Answers To determine if the
borrower is finanically capable of repaying the loan
On which approach do appraisers place the most weight in reaching a value conclusion for conforming
loans? - Answers Sales comparison approach
Table funding - Answers The process of allowing a broker to originate and close a loan in his or her own
name before transferring the loan to the lender providing the funds
Advertising an attractive interest rate that a mortgage professional is not at liberty to offer is a major
ethical offense and violation of - Answers Regulation z
Index and margin - Answers What is used to determine the interest rate chang on an ARM?
A loan with a balloon payment provision - Answers Which of the following loan types is best described
as a loan with a payment schedule made up of a series of small periodic payments and a larger lump
sum due upon maturity?
Convention/conforming loans - Answers Fannie Mae and Freddie Mac securitize what type of mortgage
loans?
FHA Loans - Answers Which of the following types of loans offers backing from the federal government
without using taxpayer dollars
To replenish lenders funds for new loans by purchasing loans that lenders have already funded and
closed. - Answers What is Fannie Mae's primary function in the secondary market?
Most lending transactions other than those for reverse mortgages and open-ended loans - Answers The
ability to repay rule applies to
The borrower must have a debt-to-income ratio of no more that 43% - Answers Community Mortgage
Bank (CMB) is a small creditor that holds the loans it originates in its portfolio until they are paid in full.
CMB Tries to limit its transaction to those for qualified mortgages. In a balloon payment QM transaction,
the transaction must neet all the following criteria, except:
"APR" - Answers Annual percentage rate
Race,ethnicity and sex - Answers Which of the following pieces of personal information is a borrower
asked to provide voluntarily on the loan application?
A property is valued at $495,000. This is a first and second mortgage with a 90% CLTV. The first
mortgage has 78% LTV. What is the approximate amount of the second mortgage? - Answers $59,400
enter equation
The veteran is disabled - Answers VA loans requirs a funding fee under all of the following conditions,
except:
43%/41% - Answers The DRI standard for an FHA loan is ____, and the standard for a VA loan is _______.
Sue Johnson is a receptionist for a construction company. She receives bi weekly pay in the amount of
$1,153.85. What is her monthly qualifying income? - Answers $2500.00
1153.85x 26=30,000
/12 =2500
, 43% - Answers In order for a home loan to be a qualified mortgage, the debt to income ratio may not
exceed.
Comparison of the value for three similar, recently sold properties - Answers Appraisals that use the
sales comparison approach include which of the followin?
A home purchase - Answers In which of the followinf transactions must the CFPB's "your home loan tool
kit" booklet be provides?
Joan Johnson is a salesperson who is paid 100% commission. What type of documentation would you
ask her to provide as proof of her income for loan qualification? - Answers Tax returns for the past two
years.
Mr. Cyril Cagney is paid $1,800 semi monthly. What is his monthly qualifying income? - Answers &3600
include equation
Bankruptcy information will remain on a consumers credit report for - Answers Ten years
A couple has qualified for a $245,600 loan. They are told that the broker fee will cost two points. What is
the dollar amount of the broker fee? - Answers $4,912 include equation
The VA guarantee covers up to what amount of the veterans entitlement? - Answers Four times the
amount of the veterans entitlement
A borrower has applied for a refinance on her property valued at $235,000. She currently has a HELLC
with a $47,000 limit and currently owes $25,850. The borrower has applied for a first mortgage of
$164,500. Which of the following LTV, CLTV, and HLTV are accurate based on this information ? -
Answers 70%/81%/90%
FEMA's National Flood Insurance Program - Answers Which if the following is avaliable to a borrower
when the subject property is located in a flood zone and flood insurance is required?
PMI is used to serve what purpose? - Answers To cover the risk of lending to a consumer without
sufficient down payment
Why would a mortgage lender analyze a borrower's credit capacity? - Answers To determine if the
borrower is finanically capable of repaying the loan
On which approach do appraisers place the most weight in reaching a value conclusion for conforming
loans? - Answers Sales comparison approach
Table funding - Answers The process of allowing a broker to originate and close a loan in his or her own
name before transferring the loan to the lender providing the funds
Advertising an attractive interest rate that a mortgage professional is not at liberty to offer is a major
ethical offense and violation of - Answers Regulation z
