Mortgage Loan Origination Activities
UPDATED Exam Questions and CORRECT
Answers
A loan program that has a single ratio of 45% would allow a borrower with $65,000 in annual
income and $490 in monthly consumer debt payments to qualify for what principal and interest
payment on a home with escrow requirements of $360 monthly? - CORRECT ANSWER -
$1,587
What type of appraisal has a value based upon what the property value would be when the listed
repairs are finished? - CORRECT ANSWER - "subject to" appraisal
A borrower is buying a house with a sales price of $200,000 and an LTV of 75%. If he paid
$3,000 in points, how many points does that represent? - CORRECT ANSWER -2
If a buyer buys a $100,000 home and gets an $80,000 mortgage loan at an interest rate of 8%,
how much is 4 points? - CORRECT ANSWER - $3,200
In order to complete an appraisal for a construction loan, what specific information does the
appraiser need from the builder? - CORRECT ANSWER - plans and specs of the project
Joe has a property that appraises for $189,000. His first mortgage rate is 4.75% and his second
mortgage rate is 15%. He has decided that he wants to leave his $53,000 first mortgage alone and
only refinance the second. He qualifies for an 85% CLTV. His second mortgage is for $25,000
but he wants cash to finish his basement. How much cash is available if his closing costs are
$1,500? - CORRECT ANSWER - $81,150
The acquisition cost of a property is $220,000 (sale price is $215,000 and the closing costs are
$5,000) and the loan amount is $200,000. The seller is paying $2,000 of the closing costs. What
is the total amount the borrower will need to bring to closing if the earnest money is $1,000 and
is being credited on the Closing Disclosure at closing? - CORRECT ANSWER - $17,000
, What document does the Veterans Administration use to determine the property value for a
mortgage loan? - CORRECT ANSWER - CRV
How many months does a FICO Score consider a credit inquiry in the calculation? - CORRECT
ANSWER - 12 months
A borrower is buying a house for $150,000 at 6.5%. He provides a down payment of $15,000.
How much would he have to pay for three discount points? - CORRECT ANSWER -
$4,050
For the purposes of a VA-guaranteed loan, what is not subtracted to determine residual income? -
CORRECT ANSWER - W-2 income
In a month with 30 days and a purchase closing on the 15th day of the month, how many days of
interest would the title agent be required to collect? - CORRECT ANSWER - 16
Mortgage applicant Ellen has received a Loan Estimate from lender XYZ. Ellen has ____ days
from when the Loan Estimate was provided to respond; otherwise, lender XYZ is no longer
bound by the terms. - CORRECT ANSWER - 10
John wants to get a loan to buy a house. Which source of income is LEAST LIKELY to be
considered durable? - CORRECT ANSWER - temporary unemployment benefits
Which of the following documents will need to be provided by the seller's lender at the closing
meeting? - CORRECT ANSWER - discharge of mortgage
The document that presents a final, detailed list of the fees and financial accounting of the
mortgage loan is known as the - CORRECT ANSWER - Closing Disclosure
A title search typically starts with a _______ search to ensure the person or company claiming to
own the property does legally have full ownership of the property. - CORRECT
ANSWER - chain of title
UPDATED Exam Questions and CORRECT
Answers
A loan program that has a single ratio of 45% would allow a borrower with $65,000 in annual
income and $490 in monthly consumer debt payments to qualify for what principal and interest
payment on a home with escrow requirements of $360 monthly? - CORRECT ANSWER -
$1,587
What type of appraisal has a value based upon what the property value would be when the listed
repairs are finished? - CORRECT ANSWER - "subject to" appraisal
A borrower is buying a house with a sales price of $200,000 and an LTV of 75%. If he paid
$3,000 in points, how many points does that represent? - CORRECT ANSWER -2
If a buyer buys a $100,000 home and gets an $80,000 mortgage loan at an interest rate of 8%,
how much is 4 points? - CORRECT ANSWER - $3,200
In order to complete an appraisal for a construction loan, what specific information does the
appraiser need from the builder? - CORRECT ANSWER - plans and specs of the project
Joe has a property that appraises for $189,000. His first mortgage rate is 4.75% and his second
mortgage rate is 15%. He has decided that he wants to leave his $53,000 first mortgage alone and
only refinance the second. He qualifies for an 85% CLTV. His second mortgage is for $25,000
but he wants cash to finish his basement. How much cash is available if his closing costs are
$1,500? - CORRECT ANSWER - $81,150
The acquisition cost of a property is $220,000 (sale price is $215,000 and the closing costs are
$5,000) and the loan amount is $200,000. The seller is paying $2,000 of the closing costs. What
is the total amount the borrower will need to bring to closing if the earnest money is $1,000 and
is being credited on the Closing Disclosure at closing? - CORRECT ANSWER - $17,000
, What document does the Veterans Administration use to determine the property value for a
mortgage loan? - CORRECT ANSWER - CRV
How many months does a FICO Score consider a credit inquiry in the calculation? - CORRECT
ANSWER - 12 months
A borrower is buying a house for $150,000 at 6.5%. He provides a down payment of $15,000.
How much would he have to pay for three discount points? - CORRECT ANSWER -
$4,050
For the purposes of a VA-guaranteed loan, what is not subtracted to determine residual income? -
CORRECT ANSWER - W-2 income
In a month with 30 days and a purchase closing on the 15th day of the month, how many days of
interest would the title agent be required to collect? - CORRECT ANSWER - 16
Mortgage applicant Ellen has received a Loan Estimate from lender XYZ. Ellen has ____ days
from when the Loan Estimate was provided to respond; otherwise, lender XYZ is no longer
bound by the terms. - CORRECT ANSWER - 10
John wants to get a loan to buy a house. Which source of income is LEAST LIKELY to be
considered durable? - CORRECT ANSWER - temporary unemployment benefits
Which of the following documents will need to be provided by the seller's lender at the closing
meeting? - CORRECT ANSWER - discharge of mortgage
The document that presents a final, detailed list of the fees and financial accounting of the
mortgage loan is known as the - CORRECT ANSWER - Closing Disclosure
A title search typically starts with a _______ search to ensure the person or company claiming to
own the property does legally have full ownership of the property. - CORRECT
ANSWER - chain of title
