NAMU - CERTIFICATION MASTER MORTGAGE
UNDERWRITER | 210 QUESTIONS AND ANSWERS |
2026 UPDATE | WITH COMPLETE SOLUTION!!
The ________ __________ provides a solid foundation for assessing the risk of
a manually underwritten loan. Answer - Eligibility Matrix
T or F: Income from royalties is reported on the 1040 Schedule C. Answer -
False - royalties are reported on Schedule E
Can a borrower with a Deed-In-Lieu 3 years ago obtain a new financing if there
are no extenuating circumstances? Answer - No - there is a 4 year waiting
period
The FNMA Form __________ is used to analyze income from tax returns.
Answer - 1084
The underwriter must evaluate the overall level of serious risk in each
application by taking into consideration any ____________ of risk factors.
Answer - Layering - the more layers, the more risk
The underwriter's job is to _________________________. Answer - Protect
the lender from loss
,T or F: You may accept a payment plan on an IRS Tax Lien. Answer - False - if a
lien is already filed it must be paid and released
Rental income can be verified with the following documents: 1040, Schedule E,
Rental Agreement, or ______________________________. Answer - Appraisal
Form 1007
What are the two tax return types that are required for a borrower who is 25%
owner of a S-Corporation? Answer - IRS 1040 Schedule E and IRS 1120S K-1
T or F: Non-traditional credit may be used as a compensating factor for a poor
credit history. Answer - False - nothing overcomes bad credit unless they have
cleaned it up over the last 2 years
Uncorroborated withdrawals or payments on a bank statement may indicate
________________________. Answer - Undisclosed debt
A single deposit that exceeds 50% of the total monthly qualifying income for
the loan is considered a __________________________. Answer - Large
deposit - that must be documented
A FNMA 1004D Appraisal Form can be used for either repair inspections or
__________________________________. Answer - Recertification of value - if
appraisal will be older than 120 days at closing
T or F: Funds in a foreign account are acceptable as long as they are translated
to US dollars. Answer - False - must be transferred into a US account
What occupancy type does not allow Gift Funds? Answer - Investment
, An existing second mortgage on a refinance requires a copy of the Note,
Security Deed, and _______________________________________. Answer -
Executed Subordination Agreement
What is the maximum IPC allowed for an investment property? Answer - 2% -
on all investments regardless of LTV
T or F: An appraisal waiver may be granted on a 2-4 Unit Property. Answer -
False - cannot use an appraisal waiver on multi-unit properties
Name the three methods of establishing value on an appraisal. Answer - Sales
Comparison, Cost Approach, Income Approach
The appraiser must provide an accurate and reliable opinion of value that
reflects the market value, condition, and ____________________. Answer -
Marketability - of the property
Fee simple ownership includes an absolute interest in a ______________ of
_______________. Answer - Bundle of rights
Name three things shown on Schedule B of the Title Commitment that must be
satisfied prior to or at closing. Answer - Liens, taxes & judgements
If the lender must submit files for direct underwriting by the mortgage
insurance company, it's called _______________________________. Answer -
Non-delegated
T or F: Tenants in common is when there is more than one owner, and each has
a fractional right/interest in the property. Answer - True
UNDERWRITER | 210 QUESTIONS AND ANSWERS |
2026 UPDATE | WITH COMPLETE SOLUTION!!
The ________ __________ provides a solid foundation for assessing the risk of
a manually underwritten loan. Answer - Eligibility Matrix
T or F: Income from royalties is reported on the 1040 Schedule C. Answer -
False - royalties are reported on Schedule E
Can a borrower with a Deed-In-Lieu 3 years ago obtain a new financing if there
are no extenuating circumstances? Answer - No - there is a 4 year waiting
period
The FNMA Form __________ is used to analyze income from tax returns.
Answer - 1084
The underwriter must evaluate the overall level of serious risk in each
application by taking into consideration any ____________ of risk factors.
Answer - Layering - the more layers, the more risk
The underwriter's job is to _________________________. Answer - Protect
the lender from loss
,T or F: You may accept a payment plan on an IRS Tax Lien. Answer - False - if a
lien is already filed it must be paid and released
Rental income can be verified with the following documents: 1040, Schedule E,
Rental Agreement, or ______________________________. Answer - Appraisal
Form 1007
What are the two tax return types that are required for a borrower who is 25%
owner of a S-Corporation? Answer - IRS 1040 Schedule E and IRS 1120S K-1
T or F: Non-traditional credit may be used as a compensating factor for a poor
credit history. Answer - False - nothing overcomes bad credit unless they have
cleaned it up over the last 2 years
Uncorroborated withdrawals or payments on a bank statement may indicate
________________________. Answer - Undisclosed debt
A single deposit that exceeds 50% of the total monthly qualifying income for
the loan is considered a __________________________. Answer - Large
deposit - that must be documented
A FNMA 1004D Appraisal Form can be used for either repair inspections or
__________________________________. Answer - Recertification of value - if
appraisal will be older than 120 days at closing
T or F: Funds in a foreign account are acceptable as long as they are translated
to US dollars. Answer - False - must be transferred into a US account
What occupancy type does not allow Gift Funds? Answer - Investment
, An existing second mortgage on a refinance requires a copy of the Note,
Security Deed, and _______________________________________. Answer -
Executed Subordination Agreement
What is the maximum IPC allowed for an investment property? Answer - 2% -
on all investments regardless of LTV
T or F: An appraisal waiver may be granted on a 2-4 Unit Property. Answer -
False - cannot use an appraisal waiver on multi-unit properties
Name the three methods of establishing value on an appraisal. Answer - Sales
Comparison, Cost Approach, Income Approach
The appraiser must provide an accurate and reliable opinion of value that
reflects the market value, condition, and ____________________. Answer -
Marketability - of the property
Fee simple ownership includes an absolute interest in a ______________ of
_______________. Answer - Bundle of rights
Name three things shown on Schedule B of the Title Commitment that must be
satisfied prior to or at closing. Answer - Liens, taxes & judgements
If the lender must submit files for direct underwriting by the mortgage
insurance company, it's called _______________________________. Answer -
Non-delegated
T or F: Tenants in common is when there is more than one owner, and each has
a fractional right/interest in the property. Answer - True
