XINNIX SOAR FINAL EXAM WITH 100%
CORRECT ANSWERS 2025-2026 UPDATE.
FNMA and FHLMC are what type of loan? - Correct Answer -conforming
the main purpose of the Consumer financial protection bureau (CFPB) is to help
consumers understand the terms of their agreements with financial companies -
Correct Answer -true
conventional loans are not insured by the federal government - Correct Answer -true
Agency loans include FHA and VA loans - Correct Answer -true
the proceeds of a loan for cash out refinance may be used by the borrower to insure a
new pool - Correct Answer -true
a non-agency loan does not have to conform to FNMA guidelines - Correct Answer -true
FNMA insured mortgage companies against default - Correct Answer -false
Fannie Mae purchased FHA loans from mortgage bankers - Correct Answer -true
FHA mortgages are self insured while conventional mortgages require PMI -
Correct Answer -true
Ginnie Mae was created to purchase government mortgages on the secondary market -
Correct Answer -false
prepaid interest to reduce the interest rate over the life of the loan - Correct Answer -
discount points
Freddie Mac offers balloon mortgages but fannie mae doesn't - Correct Answer -true
unacceptable borrowers include.. - Correct Answer -life estates, partnerships, non-
profit organizations
when is a co-signer typically permitted on a conventional loan? - Correct Answer -
when the borrower is putting down at least 10%
borrower must contribute how much if the LTV is greater than 80%? (FNMA) -
Correct Answer -5%
maximum ratios for occupant borrower alone cannot exceed... - Correct Answer -
35/43%
,DU is the automated system for.. - Correct Answer -fannie mae
LPA is the system for - Correct Answer -freddie mac
the higher the credit score, the lower potential for delinquency - Correct Answer -true
the most accurate credit report - Correct Answer -RMCR- residential mortgage credit
report
an in file credit report contains only current information about the borrowers credit -
Correct Answer -false
chapter 13 bankruptcy allows for a 3-5 year repayment plan - Correct Answer -true
credit report is ordered at the end of the process just before it goes to the underwriter
- Correct Answer -false
Permanent and non permanent resident aliens are eligible for mortgage financing
typically under the same terms as US citizens - Correct Answer -true
On a purchase transaction, the co-borrower does not have to be listed as a purchaser
on the sales contract - Correct Answer -false
A 3/1 arm will usually have a higher interest rate than a 10/1 arm - Correct Answer -
false
Typically, what is the qualifying rate on a 1-year ARM with a 2/6 caps and a start rate of
4.5? The fully indexed rate is 6.375% - Correct Answer -6.5%
The fully indexed rate on an adjustable rate mortgage is calculated based on? -
Correct Answer -index+margin
When several risk factors are present in one file, it is called and is an indicator of
the likelihood of default? - Correct Answer -layered risk
a ch. 7 bankruptcy - Correct Answer -wipes out debt completely
5/25 balloon - Correct Answer -The loan is fixed for 5 years and then the note is due
(balloons) or the customer chooses to extend.
on a 7/1 ARM you qualify based on the start rate - Correct Answer -true
The qualifying rate for an ARM with an initial fixed rate period of five years or less
is generally the greater of 2% above the start rate/ or the fully indexed rate -
Correct Answer -true
,Negative amortization occurs when the combination of interest rate adjustments and
payment caps result in monthly payments that do not cover the monthly interest due -
Correct Answer -true
How much does a 2/1 buydown typically cost on a conventional loan? - Correct Answer -
2.5 discount points
on a scale from 450-850, 700 is considered a very low credit score - Correct Answer
- false
On a conventional mortgage, a lender may use a higher ratio when there are fully
documented compensating factors that justify using the higher ratio and or the DU/LPA
issues the approval - Correct Answer -true
You do not count installment debts if they have less than 10 mo - Correct Answer -true
In qualifying on conventional loans, should legal debts be counted in the ratios
regardless of duration? - Correct Answer -false
which agency has a 41 back ratio only - Correct Answer -VA
FHA published qualifying ratios - Correct Answer -31/43
VA is not strict regarding job security - Correct Answer -false
PITI - Correct Answer -principal, interest, taxes, insurance
ways to determine HOI - Correct Answer -- ask borrower if they have gotten a quote
- estimate by calculations
HOI calculations - Correct Answer -sales price x .3 = annual HOI
when is PMI required? - Correct Answer -when borrower puts less than 20% down
95% LTV is riskier than 90% LTV because the borrower has less of their funds invested
- Correct Answer -true
1 year ARM is riskier than a 30-year fixed rate loan - Correct Answer -true
home inspection is included in cash to close - Correct Answer -false
When calculating a quick version of cash to close, the prepaids portion is what
percentage of sales price? - Correct Answer -1-1.5%
subordinate financing - Correct Answer -any loan type, secured by borrowers property,
recorded after first lien.. convenient way for borrowers to avoid MI//pay off debt
, customer profile of fixed-rate second mortgage - Correct Answer -conservative,
traditional borrowers who do not like ARMs
borrowers ballin on a
budget 5-10% for down
payment
second mortgage allows to avoid MI, lower monthly payments, control cash flow,
and have continual access to the equity in our home as you pay down your loan
balance - Correct Answer -equity line
The second mortgage works like a credit card. It will provide for a maximum loan
amount that may or may not be fully disbursed at closing - Correct Answer -home
equity line of credit
another name for a true second mortgage - Correct Answer -fixed-rate second
NOT a characteristic of a true second mortgage - Correct Answer -fixed prepaids
When a second mortgage is obtained at the same time as a first mortgage, there are
never any closing costs associated with the second - Correct Answer -false
In the marketplace, subordinate financing is often referred to by other names. Which
is not one? - Correct Answer -investment mortgage
Simultaneous is the term used when the second mortgage closes at the same time as
the first mortgage - Correct Answer -true
Most lenders offering second mortgages utilize private investors that have more
restrictive guidelines than agency loans, therefore AUS findings will not always be
valid for both loans - Correct Answer -true
Second mortgages are typically credit score sensitive - Correct Answer -true
Stand-alone is the term used when a second mortgage is being obtained separately
from a first mortgage - Correct Answer -true
A subordination agreement is required on every loan that has secondary financing -
Correct Answer -false
what makes up cash to close? - Correct Answer -down payment
closing costs
prepaids
discount
points
If a borrower does not qualify on his own for the loan, FNMA will accept the real
estate agent in the transaction as a co-signer, but not as a co-borrower. - Correct
Answer -false
CORRECT ANSWERS 2025-2026 UPDATE.
FNMA and FHLMC are what type of loan? - Correct Answer -conforming
the main purpose of the Consumer financial protection bureau (CFPB) is to help
consumers understand the terms of their agreements with financial companies -
Correct Answer -true
conventional loans are not insured by the federal government - Correct Answer -true
Agency loans include FHA and VA loans - Correct Answer -true
the proceeds of a loan for cash out refinance may be used by the borrower to insure a
new pool - Correct Answer -true
a non-agency loan does not have to conform to FNMA guidelines - Correct Answer -true
FNMA insured mortgage companies against default - Correct Answer -false
Fannie Mae purchased FHA loans from mortgage bankers - Correct Answer -true
FHA mortgages are self insured while conventional mortgages require PMI -
Correct Answer -true
Ginnie Mae was created to purchase government mortgages on the secondary market -
Correct Answer -false
prepaid interest to reduce the interest rate over the life of the loan - Correct Answer -
discount points
Freddie Mac offers balloon mortgages but fannie mae doesn't - Correct Answer -true
unacceptable borrowers include.. - Correct Answer -life estates, partnerships, non-
profit organizations
when is a co-signer typically permitted on a conventional loan? - Correct Answer -
when the borrower is putting down at least 10%
borrower must contribute how much if the LTV is greater than 80%? (FNMA) -
Correct Answer -5%
maximum ratios for occupant borrower alone cannot exceed... - Correct Answer -
35/43%
,DU is the automated system for.. - Correct Answer -fannie mae
LPA is the system for - Correct Answer -freddie mac
the higher the credit score, the lower potential for delinquency - Correct Answer -true
the most accurate credit report - Correct Answer -RMCR- residential mortgage credit
report
an in file credit report contains only current information about the borrowers credit -
Correct Answer -false
chapter 13 bankruptcy allows for a 3-5 year repayment plan - Correct Answer -true
credit report is ordered at the end of the process just before it goes to the underwriter
- Correct Answer -false
Permanent and non permanent resident aliens are eligible for mortgage financing
typically under the same terms as US citizens - Correct Answer -true
On a purchase transaction, the co-borrower does not have to be listed as a purchaser
on the sales contract - Correct Answer -false
A 3/1 arm will usually have a higher interest rate than a 10/1 arm - Correct Answer -
false
Typically, what is the qualifying rate on a 1-year ARM with a 2/6 caps and a start rate of
4.5? The fully indexed rate is 6.375% - Correct Answer -6.5%
The fully indexed rate on an adjustable rate mortgage is calculated based on? -
Correct Answer -index+margin
When several risk factors are present in one file, it is called and is an indicator of
the likelihood of default? - Correct Answer -layered risk
a ch. 7 bankruptcy - Correct Answer -wipes out debt completely
5/25 balloon - Correct Answer -The loan is fixed for 5 years and then the note is due
(balloons) or the customer chooses to extend.
on a 7/1 ARM you qualify based on the start rate - Correct Answer -true
The qualifying rate for an ARM with an initial fixed rate period of five years or less
is generally the greater of 2% above the start rate/ or the fully indexed rate -
Correct Answer -true
,Negative amortization occurs when the combination of interest rate adjustments and
payment caps result in monthly payments that do not cover the monthly interest due -
Correct Answer -true
How much does a 2/1 buydown typically cost on a conventional loan? - Correct Answer -
2.5 discount points
on a scale from 450-850, 700 is considered a very low credit score - Correct Answer
- false
On a conventional mortgage, a lender may use a higher ratio when there are fully
documented compensating factors that justify using the higher ratio and or the DU/LPA
issues the approval - Correct Answer -true
You do not count installment debts if they have less than 10 mo - Correct Answer -true
In qualifying on conventional loans, should legal debts be counted in the ratios
regardless of duration? - Correct Answer -false
which agency has a 41 back ratio only - Correct Answer -VA
FHA published qualifying ratios - Correct Answer -31/43
VA is not strict regarding job security - Correct Answer -false
PITI - Correct Answer -principal, interest, taxes, insurance
ways to determine HOI - Correct Answer -- ask borrower if they have gotten a quote
- estimate by calculations
HOI calculations - Correct Answer -sales price x .3 = annual HOI
when is PMI required? - Correct Answer -when borrower puts less than 20% down
95% LTV is riskier than 90% LTV because the borrower has less of their funds invested
- Correct Answer -true
1 year ARM is riskier than a 30-year fixed rate loan - Correct Answer -true
home inspection is included in cash to close - Correct Answer -false
When calculating a quick version of cash to close, the prepaids portion is what
percentage of sales price? - Correct Answer -1-1.5%
subordinate financing - Correct Answer -any loan type, secured by borrowers property,
recorded after first lien.. convenient way for borrowers to avoid MI//pay off debt
, customer profile of fixed-rate second mortgage - Correct Answer -conservative,
traditional borrowers who do not like ARMs
borrowers ballin on a
budget 5-10% for down
payment
second mortgage allows to avoid MI, lower monthly payments, control cash flow,
and have continual access to the equity in our home as you pay down your loan
balance - Correct Answer -equity line
The second mortgage works like a credit card. It will provide for a maximum loan
amount that may or may not be fully disbursed at closing - Correct Answer -home
equity line of credit
another name for a true second mortgage - Correct Answer -fixed-rate second
NOT a characteristic of a true second mortgage - Correct Answer -fixed prepaids
When a second mortgage is obtained at the same time as a first mortgage, there are
never any closing costs associated with the second - Correct Answer -false
In the marketplace, subordinate financing is often referred to by other names. Which
is not one? - Correct Answer -investment mortgage
Simultaneous is the term used when the second mortgage closes at the same time as
the first mortgage - Correct Answer -true
Most lenders offering second mortgages utilize private investors that have more
restrictive guidelines than agency loans, therefore AUS findings will not always be
valid for both loans - Correct Answer -true
Second mortgages are typically credit score sensitive - Correct Answer -true
Stand-alone is the term used when a second mortgage is being obtained separately
from a first mortgage - Correct Answer -true
A subordination agreement is required on every loan that has secondary financing -
Correct Answer -false
what makes up cash to close? - Correct Answer -down payment
closing costs
prepaids
discount
points
If a borrower does not qualify on his own for the loan, FNMA will accept the real
estate agent in the transaction as a co-signer, but not as a co-borrower. - Correct
Answer -false
