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AUTOMATED LOAN FILLING (ALF CORE TRAINING
EXAMINATION ACTUAL VERIFIED EXAM COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR||NEWEST EXAM!!!
A loan is submitted to LPA. Upon reconciliation, the lender
determines that a debt had not been disclosed on the loan
application. If the new debt affects the total debt-to-income
ratio by more than ___, the lender must resubmit the loan.
- Answer-3%
Where can the documentation level required by LPA be
found? - Answer-LPA Feedback Certificate
A loan file in which the borrower only has two credit lines
may not be run through LPA. - Answer-False
LPA is an automated underwriting system that may be
accessed from a standard loan origination system (LOS),
a custom LOS system, or directly via an Internet
connection. - Answer-True
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If verified income is less than the income submitted to DU,
and the verified income results in a DTI ratio greater than
45%, the loan must be resubmitted to DU. If the verified
income results in a DTI ratio less than 45%, but is
increased by 3% or more, the loan must be resubmitted to
DU. - Answer-True
Select all that apply. The benefits of using automated
underwriting systems (AUS) include:
loans can be underwritten faster and more accurately
requirements for income/employment and asset
documentation are returned based on risk
analysis is typcially inconsistent
mortgage borrowers are approved without increasing risk -
Answer-loans can be underwritten faster and more
accurately
requirements for income/employment and asset
documentation are returned based on risk
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mortgage borrowers are approved without increasing risk
Red flags should be utilized as warning signs and should
trigger additional review or action on the loan file. -
Answer-True
MISMO is - Answer-A not-for-profit subsidiary of the
Mortgage Bankers Association (MBA) created in 1999
Select all that apply. Fannie Mae's Desktop Underwriter
(DU) provides an underwriting findings report that can
include which of the following recommendations?
Remedy
Refer
Out of Scope
Approve - Answer-Refer
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Out of Scope
Approve
If a loan is given a Refer with Caution recommendation
from DU, the loan does not meet Fannie Mae's credit risk
eligibility requirements. - Answer-True
Merged credit reports may be obtained outside of DU or
requested at the time a loan is submitted to DU. - Answer-
True
When the Fannie Mae Findings report returns a message
that assets must be verified, at a minimum, the lender
must verify the exact amount specified. - Answer-True
Where can the documentation level required by LPA be
found? - Answer-LPA Feedback Certificate
Credit Data is valid for _____ days from date of the in file
credit report - Answer-120
AUTOMATED LOAN FILLING (ALF CORE TRAINING
EXAMINATION ACTUAL VERIFIED EXAM COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS LATEST
UPDATE THIS YEAR||NEWEST EXAM!!!
A loan is submitted to LPA. Upon reconciliation, the lender
determines that a debt had not been disclosed on the loan
application. If the new debt affects the total debt-to-income
ratio by more than ___, the lender must resubmit the loan.
- Answer-3%
Where can the documentation level required by LPA be
found? - Answer-LPA Feedback Certificate
A loan file in which the borrower only has two credit lines
may not be run through LPA. - Answer-False
LPA is an automated underwriting system that may be
accessed from a standard loan origination system (LOS),
a custom LOS system, or directly via an Internet
connection. - Answer-True
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If verified income is less than the income submitted to DU,
and the verified income results in a DTI ratio greater than
45%, the loan must be resubmitted to DU. If the verified
income results in a DTI ratio less than 45%, but is
increased by 3% or more, the loan must be resubmitted to
DU. - Answer-True
Select all that apply. The benefits of using automated
underwriting systems (AUS) include:
loans can be underwritten faster and more accurately
requirements for income/employment and asset
documentation are returned based on risk
analysis is typcially inconsistent
mortgage borrowers are approved without increasing risk -
Answer-loans can be underwritten faster and more
accurately
requirements for income/employment and asset
documentation are returned based on risk
,3|Page
mortgage borrowers are approved without increasing risk
Red flags should be utilized as warning signs and should
trigger additional review or action on the loan file. -
Answer-True
MISMO is - Answer-A not-for-profit subsidiary of the
Mortgage Bankers Association (MBA) created in 1999
Select all that apply. Fannie Mae's Desktop Underwriter
(DU) provides an underwriting findings report that can
include which of the following recommendations?
Remedy
Refer
Out of Scope
Approve - Answer-Refer
, 4|Page
Out of Scope
Approve
If a loan is given a Refer with Caution recommendation
from DU, the loan does not meet Fannie Mae's credit risk
eligibility requirements. - Answer-True
Merged credit reports may be obtained outside of DU or
requested at the time a loan is submitted to DU. - Answer-
True
When the Fannie Mae Findings report returns a message
that assets must be verified, at a minimum, the lender
must verify the exact amount specified. - Answer-True
Where can the documentation level required by LPA be
found? - Answer-LPA Feedback Certificate
Credit Data is valid for _____ days from date of the in file
credit report - Answer-120
