XINNIX FLIGHT SCHOOL 2025/26 QUESTIONS WITH COMPLETE SOLUTIONS.

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 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 yearsWhat 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 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 permitsales contract FNMA requires lower LRVs on ARM loans. - CORRECT ANSWER-False Match each disclosure with the Regulatory Act that requires it: - CORRECT ANSWER-Equal Credit Opportunity Act - ECOA Truth-in-Lending Statement - REG Z GFE - REG X Application - HMDA When would a loan officer want a rescore on a credit bureau? - CORRECT ANSWER-When your client states there are serious errors on their report. What are the drawbacks of a reverse mortgage? - CORRECT ANSWER-Mandatory MI Could use all your equity leaving little to your heirs A borrower may have more than one FHA loan at the same time. - CORRECT ANSWER-True