Mortgage loan originator activities Exam
Questions With Complete Solutions 2024
Loan-to-value jratio j(LTV) j- jANS✓✓-The jrelationship jbetween jthe jloan jamount
j(the jprincipal) jand jthe jvalue jof jthe jproperty jas ja jpercentage.
Total-loan-to-value j(TLTV) j- jANS✓✓-The jrelationship jbetween ja jfirst jmortgage
jplus jthe jequity jline jof jcredit jmaximum jon ja jHELOC jand jthe jvalue jof jthe
jproperty jas ja jpercentage.
Combined-loan-to-value j(CLTV) j- jANS✓✓-The jrelationship jbetween jall jloans
jbalances jand jthe jvalue jof jthe jproperty jas ja jpercentage.
Points j- jANS✓✓--shortened jform jof ja jpercentage jpoint.
-charged jby jlenders jto jincrease jtheir jyield jor jreturn jon ja jloan.
Yield j- jANS✓✓-A jreturn jto jan jinvestor jon ja jmortgage jloan, jusual jrate jplus
jpoints.
Equity j- jANS✓✓--The jdifference jbetween jthe jvalue jof ja jpiece jof jproperty jand
jthe jcharges jagainst jit.
Annual jpercentage jrate j- jANS✓✓--The jeffective jrate, jstates jthe jrelationship jof
jthe jtotal jfinance jcharge jto jthe jamount jof jthe jloan, jexpressed jas jan jannual
jpercentage.
-amount jfinanced= jmortgage jamount+costs
monthly jdebt jobligations j- jANS✓✓--monthly jcredit jobligations, jsuch jas
jinstallment jpayments, jrevolving jcharge jcards, jor jother jborrower jobligations
jthat jwill jcontinue jlonger jthan jten jmonths.
Total jdebt jobligations j- jANS✓✓--monthly jhousing jexpense jand jmonthly jdebt
jobligations.
Front-end jratio/ jhousing jexpense jratio j- jANS✓✓-dividing jthe jhousing jexpense
jfor jthe jproposed jloan jby jthe jmonthly jincome jof jthe jborrower
PITI=HER jX jINCOME
HER= jPITI j/ jINCOME
INCOME= jPITI/ jHER
=gross jincome jto jpay jPITI
, Income-to-debt jratio= jback jend jratio/ jtotal jobligation jratio j- jANS✓✓-dividing
jthe jhousing jexpenses jfor jthe jproposed jloan jplus jthe jborrower's jmonthly jcredit
jobligations jby jthe jgross jmonthly jincome jof jthe jborrower.
debt= jPITI+credit jcard j+ jother jloan
debt= jTOR jX jincome
TOR= jdebt/ jincome
backend jratio= jrecurring jdebt/ jgross jmonthly jincome
gross jmonthly jincome= jrecurring jdebt/backend jratio
recurring jdebt= jgross jmonthly jincome jX jbackend jratio
=gross jincome jto jpay jdebt
Whole jsale jlender j- jANS✓✓-offer jloans jto jmortgage jbroker jor jmortgage
jlenders
mortgage jbroker/ jlender j- jANS✓✓-add jfees jonto jthe jloan jas jpayment jfor jtheir
jservices
mortgage jbroker/ jloan joriginators j- jANS✓✓-originate jloans, jprocess, jclose, jand
jrecord jloans jin jtheir jname jwith jfunds jfrom ja jwholesale jlender
Lender/ joriginator jfees j- jANS✓✓-yeild jspread jpremium jor jservice jrelease
jpremium
Yield jspread jpremium j- jANS✓✓-fees jfrom jlender jfor jplacing ja jloan jabove jpar
jrate
-disclosed jin jthe jGFE, jHUD-1
service jrelease jpremium j- jANS✓✓-value jfor jthe jservicing jof ja jloan jin jwhich
jlenders jcan jbe jpaid ja jpremium, jor jfee jfor jthat jvalue
Application jinformation jand jrequirements j- jANS✓✓-1. jDetails jof jthe jpurchase
jcontract jand jthe jproperty
2. jPersonal jinformation, jincluding jssn
3. jEmployment jhistory
4. jinformation jon jother jincome
5. jcopies jof jdocuments jshowing jmoney jowed jto jthe jborrower
6. jSignature jof jVOE
7. jInformation jon jethnicity, jrace jand jgender
-borrower jhas jthe jright jto jrefuse
-lo jmust jmake jobservation jand jindicate jit jto jclient
application jdisclosure j- jANS✓✓-1. jall jpages jof j1003
2. jgood jfaith jestimate- jbroker
3. jtruth jin jlending jfinance jcharges jand jAPR
4. jBorrower's jcertification jand jauthorization
Questions With Complete Solutions 2024
Loan-to-value jratio j(LTV) j- jANS✓✓-The jrelationship jbetween jthe jloan jamount
j(the jprincipal) jand jthe jvalue jof jthe jproperty jas ja jpercentage.
Total-loan-to-value j(TLTV) j- jANS✓✓-The jrelationship jbetween ja jfirst jmortgage
jplus jthe jequity jline jof jcredit jmaximum jon ja jHELOC jand jthe jvalue jof jthe
jproperty jas ja jpercentage.
Combined-loan-to-value j(CLTV) j- jANS✓✓-The jrelationship jbetween jall jloans
jbalances jand jthe jvalue jof jthe jproperty jas ja jpercentage.
Points j- jANS✓✓--shortened jform jof ja jpercentage jpoint.
-charged jby jlenders jto jincrease jtheir jyield jor jreturn jon ja jloan.
Yield j- jANS✓✓-A jreturn jto jan jinvestor jon ja jmortgage jloan, jusual jrate jplus
jpoints.
Equity j- jANS✓✓--The jdifference jbetween jthe jvalue jof ja jpiece jof jproperty jand
jthe jcharges jagainst jit.
Annual jpercentage jrate j- jANS✓✓--The jeffective jrate, jstates jthe jrelationship jof
jthe jtotal jfinance jcharge jto jthe jamount jof jthe jloan, jexpressed jas jan jannual
jpercentage.
-amount jfinanced= jmortgage jamount+costs
monthly jdebt jobligations j- jANS✓✓--monthly jcredit jobligations, jsuch jas
jinstallment jpayments, jrevolving jcharge jcards, jor jother jborrower jobligations
jthat jwill jcontinue jlonger jthan jten jmonths.
Total jdebt jobligations j- jANS✓✓--monthly jhousing jexpense jand jmonthly jdebt
jobligations.
Front-end jratio/ jhousing jexpense jratio j- jANS✓✓-dividing jthe jhousing jexpense
jfor jthe jproposed jloan jby jthe jmonthly jincome jof jthe jborrower
PITI=HER jX jINCOME
HER= jPITI j/ jINCOME
INCOME= jPITI/ jHER
=gross jincome jto jpay jPITI
, Income-to-debt jratio= jback jend jratio/ jtotal jobligation jratio j- jANS✓✓-dividing
jthe jhousing jexpenses jfor jthe jproposed jloan jplus jthe jborrower's jmonthly jcredit
jobligations jby jthe jgross jmonthly jincome jof jthe jborrower.
debt= jPITI+credit jcard j+ jother jloan
debt= jTOR jX jincome
TOR= jdebt/ jincome
backend jratio= jrecurring jdebt/ jgross jmonthly jincome
gross jmonthly jincome= jrecurring jdebt/backend jratio
recurring jdebt= jgross jmonthly jincome jX jbackend jratio
=gross jincome jto jpay jdebt
Whole jsale jlender j- jANS✓✓-offer jloans jto jmortgage jbroker jor jmortgage
jlenders
mortgage jbroker/ jlender j- jANS✓✓-add jfees jonto jthe jloan jas jpayment jfor jtheir
jservices
mortgage jbroker/ jloan joriginators j- jANS✓✓-originate jloans, jprocess, jclose, jand
jrecord jloans jin jtheir jname jwith jfunds jfrom ja jwholesale jlender
Lender/ joriginator jfees j- jANS✓✓-yeild jspread jpremium jor jservice jrelease
jpremium
Yield jspread jpremium j- jANS✓✓-fees jfrom jlender jfor jplacing ja jloan jabove jpar
jrate
-disclosed jin jthe jGFE, jHUD-1
service jrelease jpremium j- jANS✓✓-value jfor jthe jservicing jof ja jloan jin jwhich
jlenders jcan jbe jpaid ja jpremium, jor jfee jfor jthat jvalue
Application jinformation jand jrequirements j- jANS✓✓-1. jDetails jof jthe jpurchase
jcontract jand jthe jproperty
2. jPersonal jinformation, jincluding jssn
3. jEmployment jhistory
4. jinformation jon jother jincome
5. jcopies jof jdocuments jshowing jmoney jowed jto jthe jborrower
6. jSignature jof jVOE
7. jInformation jon jethnicity, jrace jand jgender
-borrower jhas jthe jright jto jrefuse
-lo jmust jmake jobservation jand jindicate jit jto jclient
application jdisclosure j- jANS✓✓-1. jall jpages jof j1003
2. jgood jfaith jestimate- jbroker
3. jtruth jin jlending jfinance jcharges jand jAPR
4. jBorrower's jcertification jand jauthorization
