Xinnix SOAR Final Exam 2025
Questions and Answers
FNMA and FHLMC are what type of loan? - --Answer --conforming
the main purpose of the Consumer financial protection bureau (CFPB) is to help
consumers understand the terms of their agreements with financial companies - --
Answer --true
conventional loans are not insured by the federal government - --Answer --
true
Agency loans include FHA and VA loans - --Answer --true
the proceeds of a loan for cash out refinance may be used by the borrower to
insure a new pool - --Answer --true
a non-agency loan does not have to conform to FNMA guidelines - --
Answer --true
FNMA insured mortgage companies against default - --Answer --false
Fannie Mae purchased FHA loans from mortgage bankers - --Answer --true
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,FHA mortgages are self insured while conventional mortgages require PMI - --
Answer --true
Ginnie Mae was created to purchase government mortgages on the secondary
market - --Answer --false
prepaid interest to reduce the interest rate over the life of the loan - --
Answer --discount points
Freddie Mac offers balloon mortgages but fannie mae doesn't - --Answer --
true
unacceptable borrowers include.. - --Answer --life estates, partnerships, non-
profit organizations
when is a co-signer typically permitted on a conventional loan? - --Answer --
when the borrower is putting down at least 10%
borrower must contribute how much if the LTV is greater than 80%? (FNMA) - --
Answer --5%
maximum ratios for occupant borrower alone cannot exceed... - --Answer --
35/43%
DU is the automated system for.. - --Answer --fannie mae
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,LPA is the system for - --Answer --freddie mac
the higher the credit score, the lower potential for delinquency - --Answer --
true
the most accurate credit report - --Answer --RMCR- residential mortgage
credit report
an in file credit report contains only current information about the borrowers
credit - --Answer --false
chapter 13 bankruptcy allows for a 3-5 year repayment plan - --Answer --
true
credit report is ordered at the end of the process just before it goes to the
underwriter - --Answer --false
Permanent and non permanent resident aliens are eligible for mortgage financing
typically under the same terms as US citizens - --Answer --true
On a purchase transaction, the co-borrower does not have to be listed as a
purchaser on the sales contract - --Answer --false
A 3/1 arm will usually have a higher interest rate than a 10/1 arm - --
Answer --false
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, Typically, what is the qualifying rate on a 1-year ARM with a 2/6 caps and a start
rate of 4.5? The fully indexed rate is 6.375% - --Answer --6.5%
The fully indexed rate on an adjustable rate mortgage is calculated based on? - --
Answer --index+margin
When several risk factors are present in one file, it is called ____ and is an
indicator of the likelihood of default? - --Answer --layered risk
a ch. 7 bankruptcy - --Answer --wipes out debt completely
5/25 balloon - --Answer --The loan is fixed for 5 years and then the note is
due (balloons) or the customer chooses to extend.
on a 7/1 ARM you qualify based on the start rate - --Answer --true
The qualifying rate for an ARM with an initial fixed rate period of five years or less
is generally the greater of 2% above the start rate/ or the fully indexed rate - --
Answer --true
Negative amortization occurs when the combination of interest rate adjustments
and payment caps result in monthly payments that do not cover the monthly
interest due - --Answer --true
How much does a 2/1 buydown typically cost on a conventional loan? - --
Answer --2.5 discount points
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
Questions and Answers
FNMA and FHLMC are what type of loan? - --Answer --conforming
the main purpose of the Consumer financial protection bureau (CFPB) is to help
consumers understand the terms of their agreements with financial companies - --
Answer --true
conventional loans are not insured by the federal government - --Answer --
true
Agency loans include FHA and VA loans - --Answer --true
the proceeds of a loan for cash out refinance may be used by the borrower to
insure a new pool - --Answer --true
a non-agency loan does not have to conform to FNMA guidelines - --
Answer --true
FNMA insured mortgage companies against default - --Answer --false
Fannie Mae purchased FHA loans from mortgage bankers - --Answer --true
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,FHA mortgages are self insured while conventional mortgages require PMI - --
Answer --true
Ginnie Mae was created to purchase government mortgages on the secondary
market - --Answer --false
prepaid interest to reduce the interest rate over the life of the loan - --
Answer --discount points
Freddie Mac offers balloon mortgages but fannie mae doesn't - --Answer --
true
unacceptable borrowers include.. - --Answer --life estates, partnerships, non-
profit organizations
when is a co-signer typically permitted on a conventional loan? - --Answer --
when the borrower is putting down at least 10%
borrower must contribute how much if the LTV is greater than 80%? (FNMA) - --
Answer --5%
maximum ratios for occupant borrower alone cannot exceed... - --Answer --
35/43%
DU is the automated system for.. - --Answer --fannie mae
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,LPA is the system for - --Answer --freddie mac
the higher the credit score, the lower potential for delinquency - --Answer --
true
the most accurate credit report - --Answer --RMCR- residential mortgage
credit report
an in file credit report contains only current information about the borrowers
credit - --Answer --false
chapter 13 bankruptcy allows for a 3-5 year repayment plan - --Answer --
true
credit report is ordered at the end of the process just before it goes to the
underwriter - --Answer --false
Permanent and non permanent resident aliens are eligible for mortgage financing
typically under the same terms as US citizens - --Answer --true
On a purchase transaction, the co-borrower does not have to be listed as a
purchaser on the sales contract - --Answer --false
A 3/1 arm will usually have a higher interest rate than a 10/1 arm - --
Answer --false
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, Typically, what is the qualifying rate on a 1-year ARM with a 2/6 caps and a start
rate of 4.5? The fully indexed rate is 6.375% - --Answer --6.5%
The fully indexed rate on an adjustable rate mortgage is calculated based on? - --
Answer --index+margin
When several risk factors are present in one file, it is called ____ and is an
indicator of the likelihood of default? - --Answer --layered risk
a ch. 7 bankruptcy - --Answer --wipes out debt completely
5/25 balloon - --Answer --The loan is fixed for 5 years and then the note is
due (balloons) or the customer chooses to extend.
on a 7/1 ARM you qualify based on the start rate - --Answer --true
The qualifying rate for an ARM with an initial fixed rate period of five years or less
is generally the greater of 2% above the start rate/ or the fully indexed rate - --
Answer --true
Negative amortization occurs when the combination of interest rate adjustments
and payment caps result in monthly payments that do not cover the monthly
interest due - --Answer --true
How much does a 2/1 buydown typically cost on a conventional loan? - --
Answer --2.5 discount points
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
