NAMU - Cer fica on Master Mortgage Underwriter
With 210 Ques ons and answers Updated RATED A+
The ________ __________ provides a solid founda on for assessing the risk of a manually
underwri en loan. - Ans Eligibility Matrix
T or F: Income from royal es is reported on the 1040 Schedule C. - Ans False - royal es are
reported on Schedule E
Can a borrower with a Deed-In-Lieu 3 years ago obtain a new financing if there are no
extenua ng circumstances? - Ans No - there is a 4 year wai ng period
The FNMA Form __________ is used to analyze income from tax returns. - Ans 1084
The underwriter must evaluate the overall level of serious risk in each applica on by taking into
considera on any ____________ of risk factors. - Ans Layering - the more layers, the more risk
The underwriter's job is to _________________________. - Ans Protect the lender from loss
T or F: You may accept a payment plan on an IRS Tax Lien. - Ans 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 ______________________________. - Ans Appraisal Form 1007
What are the two tax return types that are required for a borrower who is 25% owner of a S-
Corpora on? - Ans IRS 1040 Schedule E and IRS 1120S K-1
,T or F: Non-tradi onal credit may be used as a compensa ng factor for a poor credit history. -
Ans 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
________________________. - Ans Undisclosed debt
A single deposit that exceeds 50% of the total monthly qualifying income for the loan is
considered a __________________________. - Ans Large deposit - that must be documented
A FNMA 1004D Appraisal Form can be used for either repair inspec ons or
__________________________________. - Ans Recer fica on 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. -
Ans False - must be transferred into a US account
What occupancy type does not allow GiA Funds? - Ans Investment
An exis ng second mortgage on a refinance requires a copy of the Note, Security Deed, and
_______________________________________. - Ans Executed Subordina on Agreement
What is the maximum IPC allowed for an investment property? - Ans 2% - on all investments
regardless of LTV
T or F: An appraisal waiver may be granted on a 2-4 Unit Property. - Ans False - cannot use an
appraisal waiver on mul -unit proper es
Name the three methods of establishing value on an appraisal. - Ans Sales Comparison, Cost
Approach, Income Approach
, The appraiser must provide an accurate and reliable opinion of value that reflects the market
value, condi on, and ____________________. - Ans Marketability - of the property
Fee simple ownership includes an absolute interest in a ______________ of _______________.
- Ans Bundle of rights
Name three things shown on Schedule B of the Title Commitment that must be sa sfied prior
to or at closing. - Ans Liens, taxes & judgements
If the lender must submit files for direct underwri ng by the mortgage insurance company, it's
called _______________________________. - Ans Non-delegated
T or F: Tenants in common is when there is more than one owner, and each has a frac onal
right/interest in the property. - Ans True
When typing condi ons you should always make them _________ and ____________. - Ans
Clear and concise
Leasehold rights have the implied covenant of ______________ ______________ without the
interference from the freeholder. - Ans Quiet enjoyment
T or F: Private mortgage insurance will pay the lender the full amount of their loss if a mortgage
defaults. - Ans False - only pay a % of the loss
A "condi onal approval" means the loan meets program guidelines but
______________________ ________________________ is needed. - Ans Addi onal
documenta on
With 210 Ques ons and answers Updated RATED A+
The ________ __________ provides a solid founda on for assessing the risk of a manually
underwri en loan. - Ans Eligibility Matrix
T or F: Income from royal es is reported on the 1040 Schedule C. - Ans False - royal es are
reported on Schedule E
Can a borrower with a Deed-In-Lieu 3 years ago obtain a new financing if there are no
extenua ng circumstances? - Ans No - there is a 4 year wai ng period
The FNMA Form __________ is used to analyze income from tax returns. - Ans 1084
The underwriter must evaluate the overall level of serious risk in each applica on by taking into
considera on any ____________ of risk factors. - Ans Layering - the more layers, the more risk
The underwriter's job is to _________________________. - Ans Protect the lender from loss
T or F: You may accept a payment plan on an IRS Tax Lien. - Ans 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 ______________________________. - Ans Appraisal Form 1007
What are the two tax return types that are required for a borrower who is 25% owner of a S-
Corpora on? - Ans IRS 1040 Schedule E and IRS 1120S K-1
,T or F: Non-tradi onal credit may be used as a compensa ng factor for a poor credit history. -
Ans 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
________________________. - Ans Undisclosed debt
A single deposit that exceeds 50% of the total monthly qualifying income for the loan is
considered a __________________________. - Ans Large deposit - that must be documented
A FNMA 1004D Appraisal Form can be used for either repair inspec ons or
__________________________________. - Ans Recer fica on 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. -
Ans False - must be transferred into a US account
What occupancy type does not allow GiA Funds? - Ans Investment
An exis ng second mortgage on a refinance requires a copy of the Note, Security Deed, and
_______________________________________. - Ans Executed Subordina on Agreement
What is the maximum IPC allowed for an investment property? - Ans 2% - on all investments
regardless of LTV
T or F: An appraisal waiver may be granted on a 2-4 Unit Property. - Ans False - cannot use an
appraisal waiver on mul -unit proper es
Name the three methods of establishing value on an appraisal. - Ans Sales Comparison, Cost
Approach, Income Approach
, The appraiser must provide an accurate and reliable opinion of value that reflects the market
value, condi on, and ____________________. - Ans Marketability - of the property
Fee simple ownership includes an absolute interest in a ______________ of _______________.
- Ans Bundle of rights
Name three things shown on Schedule B of the Title Commitment that must be sa sfied prior
to or at closing. - Ans Liens, taxes & judgements
If the lender must submit files for direct underwri ng by the mortgage insurance company, it's
called _______________________________. - Ans Non-delegated
T or F: Tenants in common is when there is more than one owner, and each has a frac onal
right/interest in the property. - Ans True
When typing condi ons you should always make them _________ and ____________. - Ans
Clear and concise
Leasehold rights have the implied covenant of ______________ ______________ without the
interference from the freeholder. - Ans Quiet enjoyment
T or F: Private mortgage insurance will pay the lender the full amount of their loss if a mortgage
defaults. - Ans False - only pay a % of the loss
A "condi onal approval" means the loan meets program guidelines but
______________________ ________________________ is needed. - Ans Addi onal
documenta on
