Mortgage Educators Exam Questions and Answers Latest 2025 (Already Passed)
What is the name of Fannie Mae's automated underwriting system? - Answers Desktop Underwriter
Regarding a balloon loan, which is the most correct? - Answers The balloon is disclosed on the Note and
the Trust Deed Ride
The 1003 is which of the following? - Answers The Uniform Residential Loan Application
What is the name of Freddie Mac's automated underwriting system? - Answers Loan Prospector
Which of the following is not an acceptable source for the borrower's down payment on a Fannie Mae
loan? - Answers A cash advance from a credit card if it doesn't show on the credit report
Which of the following is the most correct concerning a trust deed? - Answers It encumbers the
borrower's title to the real estate.
A discount point is best described as a charge that the borrower pays to: - Answers a lender to decrease
the interest rate on a mortgage loan.
Which of the following is not included in a credit score? - Answers Income information
Which is not a credit reporting agency? - Answers MGIC
Which is not included in debt-to-income ratio? - Answers Netflix monthly fee
The Homeowners Protection Act states that when a loan-to-value falls below 78% PMI is to be: -
Answers Terminated
PITI is the acronym for: - Answers Principal, Interest, Taxes, Insurance.
LTVR/LTV is the acronym for: - Answers Loan to value ratio
HELOC is the acronym for: - Answers Home Equity Line of Credit..
PUD is the acronym for: - Answers Planned Unit Development.
VA is the acronym for: - Answers Veteran Affairs.
According to the Truth-in-Lending Act (TILA), which of the following fees is EXCLUDED from the
calculation of the annual percentage rate? - Answers Hazard insurance
LIBOR is the acronym for: - Answers London Inter-bank Offered Rate.
The term "20 basis points" expressed as a percentage is: - Answers 0.20%
If an applicant works 40 hours a week and is paid $ 14.26 per hour, what is the applicant's average
monthly income? - Answers $2,471.73
, New VA loans are available to: - Answers eligible veterans.
Which of the following statements about a VA loan is true? - Answers A veteran can have two or more
VA loans in place simultaneously.
FHA (Federal Housing Administration) loans fall under the control and guidelines of: - Answers
HUD/CFPB.
FHA loans can be obtained by: - Answers anyone.
Interest rates for an FHA loan are set by: - Answers market forces and/or negotiation between lender
and borrower.
ALTA is the acronym for: - Answers American Land Title Association.
COFI is the acronym for: - Answers Cost of Funds Index.
CRV is the acronym for - Answers Certificate of Reasonable Value.
FDIC is the acronym for: - Answers Federal Deposit Insurance Corporation.
What are the qualifying ratios on an FHA loan when manually underwritten? - Answers 31/43
What loan requires an upfront mortgage insurance fee? - Answers FHA
On an FHA loan, the discount points can be paid: - Answers either by the borrower and/or the seller.
In selling a home which has an FHA loan, when can the FHA loan be assumed? - Answers When the loan
documents say the FHA loan is assumable
An active duty service person, or a veteran obtaining his/her first VA loan would pay what amount for
the VA funding fee (2017)? - Answers 2.15%
The loan officer suspects the social security number in an FHA application is incorrect, what must he/she
do? - Answers Contact the Social Security administration to verify it.
FHA loan limits change from time to time, and are based on the: - Answers FHA median house prices.
How much is charged for the up front mortgage insurance on an FHA loan (2012)? - Answers 1.75%
On an FHA loan, which form of a gift is NOT allowed? - Answers The seller gifts the down payment
Which type of loan application requires a residual income analysis to be performed? - Answers VA loan
Which of the following does NOT directly influence interest rates? - Answers Early payoffs
Which of the following is true concerning income with an FHA loan? - Answers Income must always be
verified
What is the name of Fannie Mae's automated underwriting system? - Answers Desktop Underwriter
Regarding a balloon loan, which is the most correct? - Answers The balloon is disclosed on the Note and
the Trust Deed Ride
The 1003 is which of the following? - Answers The Uniform Residential Loan Application
What is the name of Freddie Mac's automated underwriting system? - Answers Loan Prospector
Which of the following is not an acceptable source for the borrower's down payment on a Fannie Mae
loan? - Answers A cash advance from a credit card if it doesn't show on the credit report
Which of the following is the most correct concerning a trust deed? - Answers It encumbers the
borrower's title to the real estate.
A discount point is best described as a charge that the borrower pays to: - Answers a lender to decrease
the interest rate on a mortgage loan.
Which of the following is not included in a credit score? - Answers Income information
Which is not a credit reporting agency? - Answers MGIC
Which is not included in debt-to-income ratio? - Answers Netflix monthly fee
The Homeowners Protection Act states that when a loan-to-value falls below 78% PMI is to be: -
Answers Terminated
PITI is the acronym for: - Answers Principal, Interest, Taxes, Insurance.
LTVR/LTV is the acronym for: - Answers Loan to value ratio
HELOC is the acronym for: - Answers Home Equity Line of Credit..
PUD is the acronym for: - Answers Planned Unit Development.
VA is the acronym for: - Answers Veteran Affairs.
According to the Truth-in-Lending Act (TILA), which of the following fees is EXCLUDED from the
calculation of the annual percentage rate? - Answers Hazard insurance
LIBOR is the acronym for: - Answers London Inter-bank Offered Rate.
The term "20 basis points" expressed as a percentage is: - Answers 0.20%
If an applicant works 40 hours a week and is paid $ 14.26 per hour, what is the applicant's average
monthly income? - Answers $2,471.73
, New VA loans are available to: - Answers eligible veterans.
Which of the following statements about a VA loan is true? - Answers A veteran can have two or more
VA loans in place simultaneously.
FHA (Federal Housing Administration) loans fall under the control and guidelines of: - Answers
HUD/CFPB.
FHA loans can be obtained by: - Answers anyone.
Interest rates for an FHA loan are set by: - Answers market forces and/or negotiation between lender
and borrower.
ALTA is the acronym for: - Answers American Land Title Association.
COFI is the acronym for: - Answers Cost of Funds Index.
CRV is the acronym for - Answers Certificate of Reasonable Value.
FDIC is the acronym for: - Answers Federal Deposit Insurance Corporation.
What are the qualifying ratios on an FHA loan when manually underwritten? - Answers 31/43
What loan requires an upfront mortgage insurance fee? - Answers FHA
On an FHA loan, the discount points can be paid: - Answers either by the borrower and/or the seller.
In selling a home which has an FHA loan, when can the FHA loan be assumed? - Answers When the loan
documents say the FHA loan is assumable
An active duty service person, or a veteran obtaining his/her first VA loan would pay what amount for
the VA funding fee (2017)? - Answers 2.15%
The loan officer suspects the social security number in an FHA application is incorrect, what must he/she
do? - Answers Contact the Social Security administration to verify it.
FHA loan limits change from time to time, and are based on the: - Answers FHA median house prices.
How much is charged for the up front mortgage insurance on an FHA loan (2012)? - Answers 1.75%
On an FHA loan, which form of a gift is NOT allowed? - Answers The seller gifts the down payment
Which type of loan application requires a residual income analysis to be performed? - Answers VA loan
Which of the following does NOT directly influence interest rates? - Answers Early payoffs
Which of the following is true concerning income with an FHA loan? - Answers Income must always be
verified
