Mortgage Educators Exam questions with correct answers

Mortgage Educators Exam questions with
correct answers
What |is |the |name |of |Fannie |Mae's |automated |underwriting |system? |- |CORRECT |ANSWER✔✔-
Desktop |Underwriter



Regarding |a |balloon |loan, |which |is |the |most |correct? |- |CORRECT |ANSWER✔✔-The |balloon |is |
disclosed |on |the |Note |and |the |Trust |Deed |Ride



The |1003 |is |which |of |the |following? |- |CORRECT |ANSWER✔✔-The |Uniform |Residential |Loan |
Application



What |is |the |name |of |Freddie |Mac's |automated |underwriting |system? |- |CORRECT |ANSWER✔✔-
Loan |Prospector



Which |of |the |following |is |not |an |acceptable |source |for |the |borrower's |down |payment |on |a |
Fannie |Mae |loan? |- |CORRECT |ANSWER✔✔-A |cash |advance |from |a |credit |card |if |it |doesn't |
show |on |the |credit |report



Which |of |the |following |is |the |most |correct |concerning |a |trust |deed? |- |CORRECT |ANSWER✔✔-
It |encumbers |the |borrower's |title |to |the |real |estate.



A |discount |point |is |best |described |as |a |charge |that |the |borrower |pays |to: |- |CORRECT |
ANSWER✔✔-a |lender |to |decrease |the |interest |rate |on |a |mortgage |loan.



Which |of |the |following |is |not |included |in |a |credit |score? |- |CORRECT |ANSWER✔✔-Income |
information



Which |is |not |a |credit |reporting |agency? |- |CORRECT |ANSWER✔✔-MGIC

,Which |is |not |included |in |debt-to-income |ratio? |- |CORRECT |ANSWER✔✔-Netflix |monthly |fee



The |Homeowners |Protection |Act |states |that |when |a |loan-to-value |falls |below |78% |PMI |is |to |
be: |- |CORRECT |ANSWER✔✔-Terminated



PITI |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-Principal, |Interest, |Taxes, |Insurance.



LTVR/LTV |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-Loan |to |value |ratio



HELOC |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-Home |Equity |Line |of |Credit..



PUD |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-Planned |Unit |Development.



VA |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-Veteran |Affairs.



According |to |the |Truth-in-Lending |Act |(TILA), |which |of |the |following |fees |is |EXCLUDED |from |
the |calculation |of |the |annual |percentage |rate? |- |CORRECT |ANSWER✔✔-Hazard |insurance



LIBOR |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-London |Inter-bank |Offered |Rate.



The |term |"20 |basis |points" |expressed |as |a |percentage |is: |- |CORRECT |ANSWER✔✔-0.20%



If |an |applicant |works |40 |hours |a |week |and |is |paid |$ |14.26 |per |hour, |what |is |the |applicant's |
average |monthly |income? |- |CORRECT |ANSWER✔✔-$2,471.73



New |VA |loans |are |available |to: |- |CORRECT |ANSWER✔✔-eligible |veterans.

, Which |of |the |following |statements |about |a |VA |loan |is |true? |- |CORRECT |ANSWER✔✔-A |veteran
|can |have |two |or |more |VA |loans |in |place |simultaneously.




FHA |(Federal |Housing |Administration) |loans |fall |under |the |control |and |guidelines |of: |- |
CORRECT |ANSWER✔✔-HUD/CFPB.



FHA |loans |can |be |obtained |by: |- |CORRECT |ANSWER✔✔-anyone.



Interest |rates |for |an |FHA |loan |are |set |by: |- |CORRECT |ANSWER✔✔-market |forces |and/or |
negotiation |between |lender |and |borrower.



ALTA |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-American |Land |Title |Association.



COFI |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-Cost |of |Funds |Index.



CRV |is |the |acronym |for |- |CORRECT |ANSWER✔✔-Certificate |of |Reasonable |Value.



FDIC |is |the |acronym |for: |- |CORRECT |ANSWER✔✔-Federal |Deposit |Insurance |Corporation.



What |are |the |qualifying |ratios |on |an |FHA |loan |when |manually |underwritten? |- |CORRECT |
ANSWER✔✔-31/43



What |loan |requires |an |upfront |mortgage |insurance |fee? |- |CORRECT |ANSWER✔✔-FHA



On |an |FHA |loan, |the |discount |points |can |be |paid: |- |CORRECT |ANSWER✔✔-either |by |the |
borrower |and/or |the |seller.