XINNIX SOAR FINAL EXAM WITH COMPLETE 350 QUESTIONS AND SOLUTIONS LATEST UPDATE JUST RELEASED THIS YEA

Page 1 of 90



XINNIX SOAR FINAL EXAM WITH COMPLETE 350
QUESTIONS AND SOLUTIONS LATEST UPDATE JUST
RELEASED THIS YEAR


Question: unacceptable borrowers include.. - CORRECT ANSWER✔✔life estates, partnerships,
non-profit organizations




Question: when is a co-signer typically permitted on a conventional loan? - CORRECT
ANSWER✔✔when the borrower is putting down at least 10%




Question: borrower must contribute how much if the LTV is greater than 80%? (FNMA) -
CORRECT ANSWER✔✔5%




Question: maximum ratios for occupant borrower alone cannot exceed... - CORRECT
ANSWER✔✔35/43%




Question: DU is the automated system for.. - CORRECT ANSWER✔✔fannie mae




Question: LPA is the system for - CORRECT ANSWER✔✔freddie mac

, Page 2 of 90


Question: the higher the credit score, the lower potential for delinquency - CORRECT
ANSWER✔✔true




Question: the most accurate credit report - CORRECT ANSWER✔✔RMCR- residential mortgage
credit report




Question: an in file credit report contains only current information about the borrowers credit -
CORRECT ANSWER✔✔false




Question: chapter 13 bankruptcy allows for a 3-5 year repayment plan - CORRECT
ANSWER✔✔true




Question: credit report is ordered at the end of the process just before it goes to the
underwriter - CORRECT ANSWER✔✔false




Question: Permanent and non permanent resident aliens are eligible for mortgage financing
typically under the same terms as US citizens - CORRECT ANSWER✔✔true




Question: On a purchase transaction, the co-borrower does not have to be listed as a purchaser
on the sales contract - CORRECT ANSWER✔✔false

, Page 3 of 90


Question: A 3/1 arm will usually have a higher interest rate than a 10/1 arm - CORRECT
ANSWER✔✔false




Question: 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% - CORRECT ANSWER✔✔6.5%




Question: The fully indexed rate on an adjustable rate mortgage is calculated based on? -
CORRECT ANSWER✔✔index+margin




Question: When several risk factors are present in one file, it is called ____ and is an indicator
of the likelihood of default? - CORRECT ANSWER✔✔layered risk




Question: a ch. 7 bankruptcy - CORRECT ANSWER✔✔wipes out debt completely




Question: 5/25 balloon - CORRECT ANSWER✔✔The loan is fixed for 5 years and then the note is
due (balloons) or the customer chooses to extend.




Question: on a 7/1 ARM you qualify based on the start rate - CORRECT ANSWER✔✔true

, Page 4 of 90


Question: 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 - CORRECT
ANSWER✔✔true




Question: 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 -
CORRECT ANSWER✔✔true




Question: How much does a 2/1 buydown typically cost on a conventional loan? - CORRECT
ANSWER✔✔2.5 discount points




Question: on a scale from 450-850, 700 is considered a very low credit score - CORRECT
ANSWER✔✔false




Question: On a conventional mortgage, a lender may use a higher ratio when there are fully
documented compensating factors that justify using the higher ratio and or the DU/LPA issues
the approval - CORRECT ANSWER✔✔true




Question: You do not count installment debts if they have less than 10 mo - CORRECT
ANSWER✔✔true