Xinnix Quiz UPDATED ACTUAL Exam
Questions and CORRECT Answers
Ginnie Mae was wholly created to purchase government mortgages on the secondary market -
CORRECT ANSWER - false
which of the following was not a reason The Federal Housing Administration (FHA) was created
- CORRECT ANSWER - to simplify mortgage forms
match in order of creation - CORRECT ANSWER - 1st-FNMA
2nd-GNMA
3rd-FHLMC
match the following - CORRECT ANSWER - FNMA-fannie mae
FHLMC-Freddie Mac
what allowed more conventional mortgages to be originated in the early 1970s with less risk to
the investor - CORRECT ANSWER - private mortgage insurance
fannie mae purchased FHA loans from mortgage bankers - CORRECT ANSWER - true
which of the following statements about VA home loan programs is true - CORRECT
ANSWER - it allowed servicemen to purchase homes with as little as no down payment
which of the following statements about FNMA is false - CORRECT ANSWER - it insured
mortgage companies against default
The consumer financial protection bureau was created to protect consumers - CORRECT
ANSWER - true
,FNMA and FHLMC are backed by the US government - CORRECT ANSWER - true
why did adjustable rate mortgages become popular in 1980s - CORRECT ANSWER - interest
rates were high
a non agency loan must conform to FNMA guidelines - CORRECT ANSWER - false
agency loans do not include fha and va loans - CORRECT ANSWER - false
which of the following are agency products - CORRECT ANSWER - FNMA
FHLMC
FHA loans
VA loans
FNMA and FHLMC are - CORRECT ANSWER - conforming loans
fannie mae has the implied backing of the federal government - CORRECT ANSWER - true
which statement about conventional loans is true - CORRECT ANSWER - conventional loans
are not insured by the federal government
how many types of refinances are therw - CORRECT ANSWER -2
the proceeds from a cash out refinance loan may be used by the borrower to build a new garage -
CORRECT ANSWER - true
,your borrowers are requesting a loan for the purpose of buying a home near the local university
to rent to students - CORRECT ANSWER - investment
what is the loan called that is obtained for the purpose of replacing the existing mortgage -
CORRECT ANSWER - refinance
contruction perm loans are offered by all lenders - CORRECT ANSWER - false
a beach house would more likely be described as - CORRECT ANSWER - a single family
detached property
in order for a property to qualify as a PUD, the fee charged must be mandatory - CORRECT
ANSWER - true
with townhouses, you own the structure, the ground underneath, and the land in front and in back
of the structure - CORRECT ANSWER - true
if the roof of a townhouse needs new shingles, who is responsible - CORRECT ANSWER -
the owener
if you own a condo and a tree falls down in the yard outside your unit, who is responsible for
making arrangements to remove it - CORRECT ANSWER - the homeowners association
(HOA)
condominium fees are included in the monthly ratio(s0 when qualifying a borrower - CORRECT
ANSWER - true
who elects the officers of a homeowners association - CORRECT ANSWER - the
homeowners
townhouses are joined together by common walls - CORRECT ANSWER - true
, what type of residence has three separate units located in one building, under one roof -
CORRECT ANSWER - 2-4 family
with condos, you own the title to the land - CORRECT ANSWER - false
with 5/1 arms, you typically qualify based on START rate - CORRECT ANSWER - false
which of the following is true with 7/23 - CORRECT ANSWER - the loan is fixed for 7 years,
and the rate adjusts to a new fixed rate for the remaining 23 years if the borrowers qualifications
are met
a 10/1 arm usually will have a higher interest rate than a 3/1 arm - CORRECT ANSWER -
true
on a 1 year arm, the interest rate is recalculated every 12 months - CORRECT ANSWER -
true
typically on a 1 year arm, the borrower will qualify based on - CORRECT ANSWER - the
greater of the 2% over the note rate or the fully indexed rate
what is the start rate on a 2/1 buy down with a note rate of 7% - CORRECT ANSWER - 5%
which of the following is not an attractive feature of a fixed rate program - CORRECT
ANSWER - lower payment than arm
if a customer was getting a 6 month arm with a note rate of 3.75% and a 1/6 caps, what is the
most interest rate could be after 12 months - CORRECT ANSWER - 5.75%
Questions and CORRECT Answers
Ginnie Mae was wholly created to purchase government mortgages on the secondary market -
CORRECT ANSWER - false
which of the following was not a reason The Federal Housing Administration (FHA) was created
- CORRECT ANSWER - to simplify mortgage forms
match in order of creation - CORRECT ANSWER - 1st-FNMA
2nd-GNMA
3rd-FHLMC
match the following - CORRECT ANSWER - FNMA-fannie mae
FHLMC-Freddie Mac
what allowed more conventional mortgages to be originated in the early 1970s with less risk to
the investor - CORRECT ANSWER - private mortgage insurance
fannie mae purchased FHA loans from mortgage bankers - CORRECT ANSWER - true
which of the following statements about VA home loan programs is true - CORRECT
ANSWER - it allowed servicemen to purchase homes with as little as no down payment
which of the following statements about FNMA is false - CORRECT ANSWER - it insured
mortgage companies against default
The consumer financial protection bureau was created to protect consumers - CORRECT
ANSWER - true
,FNMA and FHLMC are backed by the US government - CORRECT ANSWER - true
why did adjustable rate mortgages become popular in 1980s - CORRECT ANSWER - interest
rates were high
a non agency loan must conform to FNMA guidelines - CORRECT ANSWER - false
agency loans do not include fha and va loans - CORRECT ANSWER - false
which of the following are agency products - CORRECT ANSWER - FNMA
FHLMC
FHA loans
VA loans
FNMA and FHLMC are - CORRECT ANSWER - conforming loans
fannie mae has the implied backing of the federal government - CORRECT ANSWER - true
which statement about conventional loans is true - CORRECT ANSWER - conventional loans
are not insured by the federal government
how many types of refinances are therw - CORRECT ANSWER -2
the proceeds from a cash out refinance loan may be used by the borrower to build a new garage -
CORRECT ANSWER - true
,your borrowers are requesting a loan for the purpose of buying a home near the local university
to rent to students - CORRECT ANSWER - investment
what is the loan called that is obtained for the purpose of replacing the existing mortgage -
CORRECT ANSWER - refinance
contruction perm loans are offered by all lenders - CORRECT ANSWER - false
a beach house would more likely be described as - CORRECT ANSWER - a single family
detached property
in order for a property to qualify as a PUD, the fee charged must be mandatory - CORRECT
ANSWER - true
with townhouses, you own the structure, the ground underneath, and the land in front and in back
of the structure - CORRECT ANSWER - true
if the roof of a townhouse needs new shingles, who is responsible - CORRECT ANSWER -
the owener
if you own a condo and a tree falls down in the yard outside your unit, who is responsible for
making arrangements to remove it - CORRECT ANSWER - the homeowners association
(HOA)
condominium fees are included in the monthly ratio(s0 when qualifying a borrower - CORRECT
ANSWER - true
who elects the officers of a homeowners association - CORRECT ANSWER - the
homeowners
townhouses are joined together by common walls - CORRECT ANSWER - true
, what type of residence has three separate units located in one building, under one roof -
CORRECT ANSWER - 2-4 family
with condos, you own the title to the land - CORRECT ANSWER - false
with 5/1 arms, you typically qualify based on START rate - CORRECT ANSWER - false
which of the following is true with 7/23 - CORRECT ANSWER - the loan is fixed for 7 years,
and the rate adjusts to a new fixed rate for the remaining 23 years if the borrowers qualifications
are met
a 10/1 arm usually will have a higher interest rate than a 3/1 arm - CORRECT ANSWER -
true
on a 1 year arm, the interest rate is recalculated every 12 months - CORRECT ANSWER -
true
typically on a 1 year arm, the borrower will qualify based on - CORRECT ANSWER - the
greater of the 2% over the note rate or the fully indexed rate
what is the start rate on a 2/1 buy down with a note rate of 7% - CORRECT ANSWER - 5%
which of the following is not an attractive feature of a fixed rate program - CORRECT
ANSWER - lower payment than arm
if a customer was getting a 6 month arm with a note rate of 3.75% and a 1/6 caps, what is the
most interest rate could be after 12 months - CORRECT ANSWER - 5.75%
