Xinnix SOAR Final Exam with 100% Correc
c c c c c c
t Answers 2022
c c
FNMAcandcFHLMCcarecwhatctypecofcloan?c-cCorrectcanswer-conforming
thecmaincpurposecofcthecConsumercfinancialcprotectioncbureauc(CFPB)cisctochelpcconsume
rscunderstandcthectermscofctheircagreementscwithcfinancialccompaniesc-cCorrectcanswer-
true
conventionalcloanscarecnotcinsuredcbycthecfederalcgovernmentc-cCorrectcanswer-true
AgencycloanscincludecFHAcandcVAcloansc-cCorrectcanswer-true
thecproceedscofcacloancforccashcoutcrefinancecmaycbecusedcbycthecborrowerctocinsurecacnew
cpoolc-cCorrectcanswer-true
acnon-agencycloancdoescnotchavectocconformctocFNMAcguidelinesc-cCorrectcanswer-true
FNMAcinsuredcmortgageccompaniescagainstcdefaultc-cCorrectcanswer-false
FanniecMaecpurchasedcFHAcloanscfromcmortgagecbankersc-cCorrectcanswer-true
FHAcmortgagescarecselfcinsuredcwhilecconventionalcmortgagescrequirecPMIc-
cCorrectcanswer-true
GinniecMaecwasccreatedctocpurchasecgovernmentcmortgagesconcthecsecondarycmarketc-
cCorrectcanswer-false
prepaidcinterestctocreducecthecinterestcratecoverctheclifecofcthecloanc-cCorrectcanswer-
cdiscountcpoints
FreddiecMaccofferscballooncmortgagescbutcfanniecmaecdoesn'tc-cCorrectcanswer-true
unacceptablecborrowerscinclude..c-cCorrectcanswer-lifecestates,cpartnerships,cnon-
profitcorganizations
whenciscacco-signerctypicallycpermittedconcacconventionalcloan?c-cCorrectcanswer-
whencthecborrowerciscputtingcdowncatcleastc10%
borrowercmustccontributechowcmuchcifcthecLTVciscgreatercthanc80%?c(FNMA)c-
cCorrectcanswer-5%
maximumcratioscforcoccupantcborrowercaloneccannotcexceed...c-cCorrectcanswer-35/43%
,DUciscthecautomatedcsystemcfor..c-cCorrectcanswer-fanniecmae
LPAciscthecsystemcforc-cCorrectcanswer-freddiecmac
thechigherctheccreditcscore,ctheclowercpotentialcforcdelinquencyc-cCorrectcanswer-true
thecmostcaccurateccreditcreportc-cCorrectcanswer-RMCR-
cresidentialcmortgageccreditcreport
ancincfileccreditcreportccontainsconlyccurrentcinformationcaboutcthecborrowersccreditc-
cCorrectcanswer-false
chapterc13cbankruptcycallowscforcac3-5cyearcrepaymentcplanc-cCorrectcanswer-true
creditcreportciscorderedcatcthecendcofcthecprocesscjustcbeforecitcgoesctocthecunderwriterc-
cCorrectcanswer-false
Permanentcandcnoncpermanentcresidentcalienscareceligiblecforcmortgagecfinancingctypicall
ycundercthecsamectermscascUSccitizensc-cCorrectcanswer-true
Oncacpurchasectransaction,cthecco-
borrowercdoescnotchavectocbeclistedcascacpurchaserconcthecsalesccontractc-
cCorrectcanswer-false
Ac3/1carmcwillcusuallychavecachighercinterestcratecthancac10/1carmc-cCorrectcanswer-false
Typically,cwhatciscthecqualifyingcrateconcac1-yearcARMcwithcac2/6ccapscandcacstartcratecof
4.5?cThecfullycindexedcratecisc6.375%c-cCorrectcanswer-6.5%
Thecfullycindexedcrateconcancadjustablecratecmortgagecisccalculatedcbasedcon?c-
cCorrectcanswer-index+margin
Whencseveralcriskcfactorscarecpresentcinconecfile,citcisccalled
andciscancindicatorcofc
theclikelihoodcofcdefault?c-cCorrectcanswer-layeredcrisk
acch.c7cbankruptcyc-cCorrectcanswer-wipescoutcdebtccompletely
5/25cballoonc-cCorrectcanswer-
Thecloanciscfixedcforc5cyearscandcthencthecnoteciscduec(balloons)corctheccustomercchoosesctocext
end.
oncac7/1cARMcyoucqualifycbasedconcthecstartcratec-cCorrectcanswer-true
ThecqualifyingcratecforcancARMcwithcancinitialcfixedcratecperiodcofcfivecyearscorclessciscge
nerallycthecgreatercofc2%cabovecthecstartcrate/corcthecfullycindexedcratec-
cCorrectcanswer-true
,Negativecamortizationcoccurscwhenctheccombinationcofcinterestcratecadjustmentscandcpaymen
tccapscresultcincmonthlycpaymentscthatcdocnotccovercthecmonthlycinterestcduec-cCorrectcanswer-
true
Howcmuchcdoescac2/1cbuydownctypicallyccostconcacconventionalcloan?c-cCorrectcanswer-
2.5cdiscountcpoints
oncacscalecfromc450-850,c700ciscconsideredcacveryclowccreditcscorec-cCorrectcanswer-cfalse
Oncacconventionalcmortgage,caclendercmaycusecachighercratiocwhenctherecarecfullycdocumente
dccompensatingcfactorscthatcjustifycusingcthechighercratiocandcorcthecDU/LPAcissuescthecapprov
alc-cCorrectcanswer-true
Youcdocnotccountcinstallmentcdebtscifctheychaveclesscthanc10cmoc-cCorrectcanswer-true
Incqualifyingconcconventionalcloans,cshouldclegalcdebtscbeccountedcincthecratioscregardlessc
ofcduration?c-cCorrectcanswer-false
whichcagencychascac41cbackcratioconlyc-cCorrectcanswer-VA
FHAcpublishedcqualifyingcratiosc-cCorrectcanswer-31/43
VAciscnotcstrictcregardingcjobcsecurityc-cCorrectcanswer-false
PITIc-cCorrectcanswer-principal,cinterest,ctaxes,cinsurance
waysctocdeterminecHOIc-cCorrectcanswer--caskcborrowercifctheychavecgottencacquote
-cestimatecbyccalculations
HOIccalculationsc-cCorrectcanswer-salescpricecxc.3c=cannualcHOI
whenciscPMIcrequired?c-cCorrectcanswer-whencborrowercputsclesscthanc20%cdown
95%cLTVciscriskiercthanc90%cLTVcbecausecthecborrowerchasclesscofctheircfundscinvested
-cCorrectcanswer-true
1cyearcARMciscriskiercthancac30-yearcfixedcratecloanc-cCorrectcanswer-true
homecinspectionciscincludedcinccashctocclosec-cCorrectcanswer-false
Whenccalculatingcacquickcversioncofccashctocclose,cthecprepaidscportionciscwhatcpercentag
ecofcsalescprice?c-cCorrectcanswer-1-1.5%
subordinatecfinancingc-cCorrectcanswer-
anycloanctype,csecuredcbycborrowerscproperty,crecordedcaftercfirstclien..cconvenientcwaycforcbor
rowersctocavoidcMI//paycoffcdebt
, customercprofilecofcfixed-ratecsecondcmortgagec-cCorrectcanswer-
conservative,ctraditionalcborrowerscwhocdocnotclikecARMs
borrowerscballinconcacbudgetc
5-10%cforcdowncpayment
secondcmortgagecallowsctocavoidcMI,clowercmonthlycpayments,ccontrolccashcflow,candch
aveccontinualcaccessctocthecequitycincourchomecascyoucpaycdowncyourcloancbalancec-
cCorrectcanswer-equitycline
Thecsecondcmortgagecworksclikecaccreditccard.cItcwillcprovidecforcacmaximumcloancamountct
hatcmaycorcmaycnotcbecfullycdisbursedcatcclosingc-cCorrectcanswer-
homecequityclinecofccredit
anothercnamecforcactruecsecondcmortgagec-cCorrectcanswer-fixed-ratecsecond
NOTcaccharacteristiccofcactruecsecondcmortgagec-cCorrectcanswer-fixedcprepaids
Whencacsecondcmortgageciscobtainedcatcthecsamectimecascacfirstcmortgage,ctherecarecneve
rcanycclosingccostscassociatedcwithcthecsecondc-cCorrectcanswer-false
Incthecmarketplace,csubordinatecfinancingciscoftencreferredctocbycothercnames.cWhichciscno
tcone?c-cCorrectcanswer-investmentcmortgage
Simultaneousciscthectermcusedcwhencthecsecondcmortgagecclosescatcthecsamectimecascthec
firstcmortgagec-cCorrectcanswer-true
Mostclenderscofferingcsecondcmortgagescutilizecprivatecinvestorscthatchavecmorecrestrictiv
ecguidelinescthancagencycloans,cthereforecAUScfindingscwillcnotcalwayscbecvalidcforcbothclo
ansc-cCorrectcanswer-true
Secondcmortgagescarectypicallyccreditcscorecsensitivec-cCorrectcanswer-true
Stand-
aloneciscthectermcusedcwhencacsecondcmortgageciscbeingcobtainedcseparatelycfromcacfirstc
mortgagec-cCorrectcanswer-true
Acsubordinationcagreementciscrequiredconceverycloancthatchascsecondarycfinancingc-
cCorrectcanswer-false
whatcmakescupccashctocclose?c-cCorrectcanswer-
downcpaymentcclosingccosts
prepaidscdisco
untcpoints
Ifcacborrowercdoescnotcqualifyconchiscowncforcthecloan,cFNMAcwillcacceptcthecrealcestatecag
entcincthectransactioncascacco-signer,cbutcnotcascacco-borrower.c-cCorrectcanswer-false
c c c c c c
t Answers 2022
c c
FNMAcandcFHLMCcarecwhatctypecofcloan?c-cCorrectcanswer-conforming
thecmaincpurposecofcthecConsumercfinancialcprotectioncbureauc(CFPB)cisctochelpcconsume
rscunderstandcthectermscofctheircagreementscwithcfinancialccompaniesc-cCorrectcanswer-
true
conventionalcloanscarecnotcinsuredcbycthecfederalcgovernmentc-cCorrectcanswer-true
AgencycloanscincludecFHAcandcVAcloansc-cCorrectcanswer-true
thecproceedscofcacloancforccashcoutcrefinancecmaycbecusedcbycthecborrowerctocinsurecacnew
cpoolc-cCorrectcanswer-true
acnon-agencycloancdoescnotchavectocconformctocFNMAcguidelinesc-cCorrectcanswer-true
FNMAcinsuredcmortgageccompaniescagainstcdefaultc-cCorrectcanswer-false
FanniecMaecpurchasedcFHAcloanscfromcmortgagecbankersc-cCorrectcanswer-true
FHAcmortgagescarecselfcinsuredcwhilecconventionalcmortgagescrequirecPMIc-
cCorrectcanswer-true
GinniecMaecwasccreatedctocpurchasecgovernmentcmortgagesconcthecsecondarycmarketc-
cCorrectcanswer-false
prepaidcinterestctocreducecthecinterestcratecoverctheclifecofcthecloanc-cCorrectcanswer-
cdiscountcpoints
FreddiecMaccofferscballooncmortgagescbutcfanniecmaecdoesn'tc-cCorrectcanswer-true
unacceptablecborrowerscinclude..c-cCorrectcanswer-lifecestates,cpartnerships,cnon-
profitcorganizations
whenciscacco-signerctypicallycpermittedconcacconventionalcloan?c-cCorrectcanswer-
whencthecborrowerciscputtingcdowncatcleastc10%
borrowercmustccontributechowcmuchcifcthecLTVciscgreatercthanc80%?c(FNMA)c-
cCorrectcanswer-5%
maximumcratioscforcoccupantcborrowercaloneccannotcexceed...c-cCorrectcanswer-35/43%
,DUciscthecautomatedcsystemcfor..c-cCorrectcanswer-fanniecmae
LPAciscthecsystemcforc-cCorrectcanswer-freddiecmac
thechigherctheccreditcscore,ctheclowercpotentialcforcdelinquencyc-cCorrectcanswer-true
thecmostcaccurateccreditcreportc-cCorrectcanswer-RMCR-
cresidentialcmortgageccreditcreport
ancincfileccreditcreportccontainsconlyccurrentcinformationcaboutcthecborrowersccreditc-
cCorrectcanswer-false
chapterc13cbankruptcycallowscforcac3-5cyearcrepaymentcplanc-cCorrectcanswer-true
creditcreportciscorderedcatcthecendcofcthecprocesscjustcbeforecitcgoesctocthecunderwriterc-
cCorrectcanswer-false
Permanentcandcnoncpermanentcresidentcalienscareceligiblecforcmortgagecfinancingctypicall
ycundercthecsamectermscascUSccitizensc-cCorrectcanswer-true
Oncacpurchasectransaction,cthecco-
borrowercdoescnotchavectocbeclistedcascacpurchaserconcthecsalesccontractc-
cCorrectcanswer-false
Ac3/1carmcwillcusuallychavecachighercinterestcratecthancac10/1carmc-cCorrectcanswer-false
Typically,cwhatciscthecqualifyingcrateconcac1-yearcARMcwithcac2/6ccapscandcacstartcratecof
4.5?cThecfullycindexedcratecisc6.375%c-cCorrectcanswer-6.5%
Thecfullycindexedcrateconcancadjustablecratecmortgagecisccalculatedcbasedcon?c-
cCorrectcanswer-index+margin
Whencseveralcriskcfactorscarecpresentcinconecfile,citcisccalled
andciscancindicatorcofc
theclikelihoodcofcdefault?c-cCorrectcanswer-layeredcrisk
acch.c7cbankruptcyc-cCorrectcanswer-wipescoutcdebtccompletely
5/25cballoonc-cCorrectcanswer-
Thecloanciscfixedcforc5cyearscandcthencthecnoteciscduec(balloons)corctheccustomercchoosesctocext
end.
oncac7/1cARMcyoucqualifycbasedconcthecstartcratec-cCorrectcanswer-true
ThecqualifyingcratecforcancARMcwithcancinitialcfixedcratecperiodcofcfivecyearscorclessciscge
nerallycthecgreatercofc2%cabovecthecstartcrate/corcthecfullycindexedcratec-
cCorrectcanswer-true
,Negativecamortizationcoccurscwhenctheccombinationcofcinterestcratecadjustmentscandcpaymen
tccapscresultcincmonthlycpaymentscthatcdocnotccovercthecmonthlycinterestcduec-cCorrectcanswer-
true
Howcmuchcdoescac2/1cbuydownctypicallyccostconcacconventionalcloan?c-cCorrectcanswer-
2.5cdiscountcpoints
oncacscalecfromc450-850,c700ciscconsideredcacveryclowccreditcscorec-cCorrectcanswer-cfalse
Oncacconventionalcmortgage,caclendercmaycusecachighercratiocwhenctherecarecfullycdocumente
dccompensatingcfactorscthatcjustifycusingcthechighercratiocandcorcthecDU/LPAcissuescthecapprov
alc-cCorrectcanswer-true
Youcdocnotccountcinstallmentcdebtscifctheychaveclesscthanc10cmoc-cCorrectcanswer-true
Incqualifyingconcconventionalcloans,cshouldclegalcdebtscbeccountedcincthecratioscregardlessc
ofcduration?c-cCorrectcanswer-false
whichcagencychascac41cbackcratioconlyc-cCorrectcanswer-VA
FHAcpublishedcqualifyingcratiosc-cCorrectcanswer-31/43
VAciscnotcstrictcregardingcjobcsecurityc-cCorrectcanswer-false
PITIc-cCorrectcanswer-principal,cinterest,ctaxes,cinsurance
waysctocdeterminecHOIc-cCorrectcanswer--caskcborrowercifctheychavecgottencacquote
-cestimatecbyccalculations
HOIccalculationsc-cCorrectcanswer-salescpricecxc.3c=cannualcHOI
whenciscPMIcrequired?c-cCorrectcanswer-whencborrowercputsclesscthanc20%cdown
95%cLTVciscriskiercthanc90%cLTVcbecausecthecborrowerchasclesscofctheircfundscinvested
-cCorrectcanswer-true
1cyearcARMciscriskiercthancac30-yearcfixedcratecloanc-cCorrectcanswer-true
homecinspectionciscincludedcinccashctocclosec-cCorrectcanswer-false
Whenccalculatingcacquickcversioncofccashctocclose,cthecprepaidscportionciscwhatcpercentag
ecofcsalescprice?c-cCorrectcanswer-1-1.5%
subordinatecfinancingc-cCorrectcanswer-
anycloanctype,csecuredcbycborrowerscproperty,crecordedcaftercfirstclien..cconvenientcwaycforcbor
rowersctocavoidcMI//paycoffcdebt
, customercprofilecofcfixed-ratecsecondcmortgagec-cCorrectcanswer-
conservative,ctraditionalcborrowerscwhocdocnotclikecARMs
borrowerscballinconcacbudgetc
5-10%cforcdowncpayment
secondcmortgagecallowsctocavoidcMI,clowercmonthlycpayments,ccontrolccashcflow,candch
aveccontinualcaccessctocthecequitycincourchomecascyoucpaycdowncyourcloancbalancec-
cCorrectcanswer-equitycline
Thecsecondcmortgagecworksclikecaccreditccard.cItcwillcprovidecforcacmaximumcloancamountct
hatcmaycorcmaycnotcbecfullycdisbursedcatcclosingc-cCorrectcanswer-
homecequityclinecofccredit
anothercnamecforcactruecsecondcmortgagec-cCorrectcanswer-fixed-ratecsecond
NOTcaccharacteristiccofcactruecsecondcmortgagec-cCorrectcanswer-fixedcprepaids
Whencacsecondcmortgageciscobtainedcatcthecsamectimecascacfirstcmortgage,ctherecarecneve
rcanycclosingccostscassociatedcwithcthecsecondc-cCorrectcanswer-false
Incthecmarketplace,csubordinatecfinancingciscoftencreferredctocbycothercnames.cWhichciscno
tcone?c-cCorrectcanswer-investmentcmortgage
Simultaneousciscthectermcusedcwhencthecsecondcmortgagecclosescatcthecsamectimecascthec
firstcmortgagec-cCorrectcanswer-true
Mostclenderscofferingcsecondcmortgagescutilizecprivatecinvestorscthatchavecmorecrestrictiv
ecguidelinescthancagencycloans,cthereforecAUScfindingscwillcnotcalwayscbecvalidcforcbothclo
ansc-cCorrectcanswer-true
Secondcmortgagescarectypicallyccreditcscorecsensitivec-cCorrectcanswer-true
Stand-
aloneciscthectermcusedcwhencacsecondcmortgageciscbeingcobtainedcseparatelycfromcacfirstc
mortgagec-cCorrectcanswer-true
Acsubordinationcagreementciscrequiredconceverycloancthatchascsecondarycfinancingc-
cCorrectcanswer-false
whatcmakescupccashctocclose?c-cCorrectcanswer-
downcpaymentcclosingccosts
prepaidscdisco
untcpoints
Ifcacborrowercdoescnotcqualifyconchiscowncforcthecloan,cFNMAcwillcacceptcthecrealcestatecag
entcincthectransactioncascacco-signer,cbutcnotcascacco-borrower.c-cCorrectcanswer-false
