2025 MORTGAGE EDUCATORS EXAM QUESTIONS WITH
ANSWERS GRADED A+ 2025/2026
ALTA is the acronym for: - American Land Title Association.
COFI is the acronym for: - Cost of Funds Index.
CRV is the acronym for - Certificate of Reasonable Value.
FDIC is the acronym for: - Federal Deposit Insurance Corporation.
What are the qualifying ratios on an FHA loan when manually underwritten? - 31/43
What loan requires an upfront mortgage insurance fee? - FHA
On an FHA loan, the discount points can be paid: - either by the borrower and/or the
seller.
In selling a home which has an FHA loan, when can the FHA loan be assumed? - When
the loan documents say the FHA loan is assumable
An active duty service person, or a veteran obtaining his/her first VA loan would pay
what amount for the VA funding fee (2017)? - 2.15%
The loan officer suspects the social security number in an FHA application is incorrect,
what must he/she do? - Contact the Social Security administration to verify it.
FHA loan limits change from time to time, and are based on the: - FHA median house
prices.
How much is charged for the up front mortgage insurance on an FHA loan (2012)? -
1.75%
On an FHA loan, which form of a gift is NOT allowed? - The seller gifts the down
payment
Which type of loan application requires a residual income analysis to be performed? -
VA loan
Which of the following does NOT directly influence interest rates? - Early payoffs
Which of the following is true concerning income with an FHA loan? - Income must
always be verified
When a borrower asks for an FHA loan, which of the following is false concerning the
borrower's credit? - Collections will not affect the credit score
, When purchasing a home with an FHA loan, which of the following is true concerning
employment? - Salaried employment is always verified
With an FHA loan, which of the following is true concerning qualifying ratios? -
Automated underwriting may approve a borrower with ratios higher than 29/41
What part of a monthly payment cannot change during the fixed term of the mortgage
loan? - Monthly Interest
The borrower wants to get an FHA loan, but a judgment appears on the credit report.
Which of the following represents how the judgment will be treated? - The judgment
must be paid in full before the borrower can get an FHA loan.
A person, who brings a borrower and lender together, is knows as a: - mortgage broker.
For loans purchased by FNMA or FHLMC, the conforming limit for 2017 is: - $424,100
Which of the following would keep you from getting an FHA loan? - Not having a down
payment
The way to compute LTV would be? - Divide the loan amount by the value of the
property.
When a loan is immediately being sold onto the secondary market, the responsibility of
"funding" belongs to the: - primary lender.
Under a trust deed and note, what interests do the borrower and lender hold in the
property which is used as collateral? - Borrower - legal title, Lender - a lien
Borrowers who qualify for conforming loans would be referred to as: - A paper
borrowers.
The entity that services a loan, basically takes on the duties of the: - mortgagee.
Another way to refer to non-conforming loans would be: - Jumbo.
SRP stands for: - Service Release Premium.
In the mortgage business, what does the word "term" refer to? - The length of time of
the loan
What is a mortgage or trust deed? - The document that creates a lien against the
property
ANSWERS GRADED A+ 2025/2026
ALTA is the acronym for: - American Land Title Association.
COFI is the acronym for: - Cost of Funds Index.
CRV is the acronym for - Certificate of Reasonable Value.
FDIC is the acronym for: - Federal Deposit Insurance Corporation.
What are the qualifying ratios on an FHA loan when manually underwritten? - 31/43
What loan requires an upfront mortgage insurance fee? - FHA
On an FHA loan, the discount points can be paid: - either by the borrower and/or the
seller.
In selling a home which has an FHA loan, when can the FHA loan be assumed? - When
the loan documents say the FHA loan is assumable
An active duty service person, or a veteran obtaining his/her first VA loan would pay
what amount for the VA funding fee (2017)? - 2.15%
The loan officer suspects the social security number in an FHA application is incorrect,
what must he/she do? - Contact the Social Security administration to verify it.
FHA loan limits change from time to time, and are based on the: - FHA median house
prices.
How much is charged for the up front mortgage insurance on an FHA loan (2012)? -
1.75%
On an FHA loan, which form of a gift is NOT allowed? - The seller gifts the down
payment
Which type of loan application requires a residual income analysis to be performed? -
VA loan
Which of the following does NOT directly influence interest rates? - Early payoffs
Which of the following is true concerning income with an FHA loan? - Income must
always be verified
When a borrower asks for an FHA loan, which of the following is false concerning the
borrower's credit? - Collections will not affect the credit score
, When purchasing a home with an FHA loan, which of the following is true concerning
employment? - Salaried employment is always verified
With an FHA loan, which of the following is true concerning qualifying ratios? -
Automated underwriting may approve a borrower with ratios higher than 29/41
What part of a monthly payment cannot change during the fixed term of the mortgage
loan? - Monthly Interest
The borrower wants to get an FHA loan, but a judgment appears on the credit report.
Which of the following represents how the judgment will be treated? - The judgment
must be paid in full before the borrower can get an FHA loan.
A person, who brings a borrower and lender together, is knows as a: - mortgage broker.
For loans purchased by FNMA or FHLMC, the conforming limit for 2017 is: - $424,100
Which of the following would keep you from getting an FHA loan? - Not having a down
payment
The way to compute LTV would be? - Divide the loan amount by the value of the
property.
When a loan is immediately being sold onto the secondary market, the responsibility of
"funding" belongs to the: - primary lender.
Under a trust deed and note, what interests do the borrower and lender hold in the
property which is used as collateral? - Borrower - legal title, Lender - a lien
Borrowers who qualify for conforming loans would be referred to as: - A paper
borrowers.
The entity that services a loan, basically takes on the duties of the: - mortgagee.
Another way to refer to non-conforming loans would be: - Jumbo.
SRP stands for: - Service Release Premium.
In the mortgage business, what does the word "term" refer to? - The length of time of
the loan
What is a mortgage or trust deed? - The document that creates a lien against the
property
