XINNIX FLIGHT SCHOOL UPDATED
ACTUAL Exam Questions and CORRECT
Answers
The rate lock period for a refi, with a right of rescission, must be long enough to cover the
rescission period. - CORRECT ANSWER - True
How long does a borrower have to wait to buy a home after they have had a foreclosure? FHA -
CORRECT ANSWER - 3 years
What are the steps you should follow to determine the correct MI? - CORRECT ANSWER -
LTV, term, product type, occupancy type and coverage.
Typically, files that have to be manually underwritten are subject to less strict guidelines. -
CORRECT ANSWER - False
You can always use an appraisal that was transferred from another lender, regardless of whether
the loan is conventional, FHA, or VA. - CORRECT ANSWER - False
Whould you need tax returns from a borrower who is paid in the following manner? Total yearly
income (base + commissions)=$50,000;commission varies each year. - CORRECT
ANSWER - yes
What are the two documents all retired veterans should bring to application? - CORRECT
ANSWER - COE and DD214?
At what rate does your borrower qualify on an FHA 30 year fixed, 2/1 buy-down with a note rate
of 7.5% and a start rate of 5.5%? - CORRECT ANSWER - 7.5%
,If income is non-taxable, we would consider allowing for higher ratios since most ratios are
calculated with the assumption of income being taxable. Assume manually underwritten loan -
CORRECT ANSWER - True
Which of the following is an accurate distinction between a single-family detached unit and a
townhouse? - CORRECT ANSWER - One shares common walls with other units, the other
does not.
The borrower must have 5% of their own funds when putting 20% down on a conventional loan
for a primary residence. - CORRECT ANSWER - false
The application fee on VA loans must be listed as an application fee on the LE. - CORRECT
ANSWER - False
If the roof of a townhouse (fee simple) needs new shingles, who is responsible? - CORRECT
ANSWER - homeowner?
The CPI is a monthly index published by the US gov't that measures consumer attitudes and
expectations concerning both present and future economic conditions - CORRECT
ANSWER - False
What is the max seller contribution on VA loan - CORRECT ANSWER - 4% which includes
cc, pp and points ?
You must check "form 2106" for un-reimbursed employee expenses when you have a borrower
who earns commissions. - CORRECT ANSWER - False
Choose the relationship between the name of the report and mortgage interest rate tendencies -
CORRECT ANSWER - When CPI goes up, rates tend to go up; when the GDP goes down,
rates tend to go down; when the unemployment rate goes up, rates tend to go down.
, Verification of employment, income, source of funds and payment history must not be older than
---- days prior to the note rate. - CORRECT ANSWER - 120
Subordinate financing is permitted with a seller second up to 100% CLTV - CORRECT
ANSWER - False
How many days must a borrower wait to close once they receive their initial disclosures -
CORRECT ANSWER - 7 days
Gross rent may be considered effective income when an applicant is planning to rent their
current residence after closing on the purchase of their new home. - CORRECT ANSWER -
False
What income would allow for higher ratios, assuming a manually underwritten loan - CORRECT
ANSWER - Taxable income?
The purpose of this act, implemented by Reg Z, is to provide consumers with a greater
understanding of the actual cost of credit. - CORRECT ANSWER - TILA
You are required to disclose why a loan was declined, if applicable to the lender you are
transferring a loan package to for all FHA and VA loans - CORRECT ANSWER - true
What are types of renovation mortgages - CORRECT ANSWER - FNMA Homestyle and
FHA 203(k)
What must you give to the appraiser for FHA new construction - CORRECT ANSWER -
builder permit
sales contract
FNMA requires lower LRVs on ARM loans. - CORRECT ANSWER - False
ACTUAL Exam Questions and CORRECT
Answers
The rate lock period for a refi, with a right of rescission, must be long enough to cover the
rescission period. - CORRECT ANSWER - True
How long does a borrower have to wait to buy a home after they have had a foreclosure? FHA -
CORRECT ANSWER - 3 years
What are the steps you should follow to determine the correct MI? - CORRECT ANSWER -
LTV, term, product type, occupancy type and coverage.
Typically, files that have to be manually underwritten are subject to less strict guidelines. -
CORRECT ANSWER - False
You can always use an appraisal that was transferred from another lender, regardless of whether
the loan is conventional, FHA, or VA. - CORRECT ANSWER - False
Whould you need tax returns from a borrower who is paid in the following manner? Total yearly
income (base + commissions)=$50,000;commission varies each year. - CORRECT
ANSWER - yes
What are the two documents all retired veterans should bring to application? - CORRECT
ANSWER - COE and DD214?
At what rate does your borrower qualify on an FHA 30 year fixed, 2/1 buy-down with a note rate
of 7.5% and a start rate of 5.5%? - CORRECT ANSWER - 7.5%
,If income is non-taxable, we would consider allowing for higher ratios since most ratios are
calculated with the assumption of income being taxable. Assume manually underwritten loan -
CORRECT ANSWER - True
Which of the following is an accurate distinction between a single-family detached unit and a
townhouse? - CORRECT ANSWER - One shares common walls with other units, the other
does not.
The borrower must have 5% of their own funds when putting 20% down on a conventional loan
for a primary residence. - CORRECT ANSWER - false
The application fee on VA loans must be listed as an application fee on the LE. - CORRECT
ANSWER - False
If the roof of a townhouse (fee simple) needs new shingles, who is responsible? - CORRECT
ANSWER - homeowner?
The CPI is a monthly index published by the US gov't that measures consumer attitudes and
expectations concerning both present and future economic conditions - CORRECT
ANSWER - False
What is the max seller contribution on VA loan - CORRECT ANSWER - 4% which includes
cc, pp and points ?
You must check "form 2106" for un-reimbursed employee expenses when you have a borrower
who earns commissions. - CORRECT ANSWER - False
Choose the relationship between the name of the report and mortgage interest rate tendencies -
CORRECT ANSWER - When CPI goes up, rates tend to go up; when the GDP goes down,
rates tend to go down; when the unemployment rate goes up, rates tend to go down.
, Verification of employment, income, source of funds and payment history must not be older than
---- days prior to the note rate. - CORRECT ANSWER - 120
Subordinate financing is permitted with a seller second up to 100% CLTV - CORRECT
ANSWER - False
How many days must a borrower wait to close once they receive their initial disclosures -
CORRECT ANSWER - 7 days
Gross rent may be considered effective income when an applicant is planning to rent their
current residence after closing on the purchase of their new home. - CORRECT ANSWER -
False
What income would allow for higher ratios, assuming a manually underwritten loan - CORRECT
ANSWER - Taxable income?
The purpose of this act, implemented by Reg Z, is to provide consumers with a greater
understanding of the actual cost of credit. - CORRECT ANSWER - TILA
You are required to disclose why a loan was declined, if applicable to the lender you are
transferring a loan package to for all FHA and VA loans - CORRECT ANSWER - true
What are types of renovation mortgages - CORRECT ANSWER - FNMA Homestyle and
FHA 203(k)
What must you give to the appraiser for FHA new construction - CORRECT ANSWER -
builder permit
sales contract
FNMA requires lower LRVs on ARM loans. - CORRECT ANSWER - False
