Xinnix SOAR Final Exam with 100% Correct Answers 2022

FNMA and FHLMC are what type of loan? - Correct 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 - Correct answer-true conventional loans are not insured by the federal government - Correct answer-true Agency loans include FHA and VA loans - Correct answer-true the proceeds of a loan for cash out refinance may be used by the borrower to insure a new pool - Correct answer-true a non-agency loan does not have to conform to FNMA guidelines - Correct answer-true FNMA insured mortgage companies against default - Correct answer-false Fannie Mae purchased FHA loans from mortgage bankers - Correct answer-true FHA mortgages are self insured while conventional mortgages require PMI - Correct answer-true Ginnie Mae was created to purchase government mortgages on the secondary market - Correct answer-false prepaid interest to reduce the interest rate over the life of the loan - Correct answerdiscount points Freddie Mac offers balloon mortgages but fannie mae doesn't - Correct answer-true unacceptable borrowers include.. - Correct answer-life estates, partnerships, non-profit organizations when is a co-signer typically permitted on a conventional loan? - Correct answer-when the borrower is putting down at least 10% borrower must contribute how much if the LTV is greater than 80%? (FNMA) - Correct answer-5% maximum ratios for occupant borrower alone cannot exceed... - Correct answer-35/43% DU is the automated system for.. - Correct answer-fannie mae LPA is the system for - Correct answer-freddie mac the higher the credit score, the lower potential for delinquency - Correct answer-true the most accurate credit report - Correct answer-RMCR- residential mortgage credit report an in file credit report contains only current information about the borrowers credit - Correct answer-false chapter 13 bankruptcy allows for a 3-5 year repayment plan - Correct answer-true credit report is ordered at the end of the process just before it goes to the underwriter - Correct answer-false Permanent and non permanent resident aliens are eligible for mortgage financing typically under the same terms as US citizens - Correct answer-true On a purchase transaction, the co-borrower does not have to be listed as a purchaser on the sales contract - Correct answer-false A 3/1 arm will usually have a higher interest rate than a 10/1 arm - Correct answer-false 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% The fully indexed rate on an adjustable rate mortgage is calculated based on? - Correct answer-index+margin 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 a ch. 7 bankruptcy - Correct answer-wipes out debt completely 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. on a 7/1 ARM you qualify based on the start rate - Correct 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 - Correct 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 - Correct answer-true How much does a 2/1 buydown typically cost on a conventional loan? - Correct answer2.5 discount points on a scale from 450-850, 700 is considered a very low credit score - Correct answerfalse 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 You do not count installment debts if they have less than 10 mo - Correct answer-true In qualifying on conventional loans, should legal debts be counted in the ratios regardless of duration? - Correct answer-false which agency has a 41 back ratio only - Correct answer-VA FHA published qualifying ratios - Correct answer-31/43 VA is not strict regarding job security - Correct answer-false PITI - Correct answer-principal, interest, taxes, insurance ways to determine HOI - Correct answer-- ask borrower if they have gotten a quote - estimate by calculations HOI calculations - Correct answer-sales price x .3 = annual HOI when is PMI required? - Correct answer-when borrower puts less than 20% down 95% LTV is riskier than 90% LTV because the borrower has less of their funds invested - Correct answer-true 1 year ARM is riskier than a 30-year fixed rate loan - Correct answer-true home inspection is included in cash to close - Correct answer-false When calculating a quick version of cash to close, the prepaids portion is what percentage of sales price? - Correct answer-1-1.5% subordinate financing - Correct answer-any loan type, secured by borrowers property, recorded after first lien.. convenient way for borrowers to avoid MI//pay off debt customer profile of fixed-rate second mortgage - Correct answer-conservative, traditional borrowers who do not like ARMs borrowers ballin on a budget 5-10% for down payment second mortgage allows to avoid MI, lower monthly payments, control cash flow, and have continual access to the equity in our home as you pay down your loan balance - Correct answer-equity line The second mortgage works like a credit card. It will provide for a maximum loan amount that may or may not be fully disbursed at closing - Correct answer-home equity line of credit another name for a true second mortgage - Correct answer-fixed-rate second NOT a characteristic of a true second mortgage - Correct answer-fixed prepaids When a second mortgage is obtained at the same time as a first mortgage, there are never any closing costs associated with the second - Correct answer-false In the marketplace, subordinate financing is often referred to by other names. Which is not one? - Correct answer-investment mortgage Simultaneous is the term used when the second mortgage closes at the same time as the first mortgage - Correct answer-true Most lenders offering second mortgages utilize private investors that have more restrictive guidelines than agency loans, therefore AUS findings will not always be valid for both loans - Correct answer-true Second mortgages are typically credit score sensitive - Correct answer-true Stand-alone is the term used when a second mortgage is being obtained separately from a first mortgage - Correct answer-true A subordination agreement is required on every loan that has secondary financing - Correct answer-false what makes up cash to close? - Correct answer-down payment closing costs prepaids discount points If a borrower does not qualify on his own for the loan, FNMA will accept the real estate agent in the transaction as a co-signer, but not as a co-borrower. - Correct answer-false What is the maximum term for a loan sold to FHLMC? - Correct answer-30 years what are the reserves required for an investment property? - Correct answer-6 mo plus 2 months for each additional property What is the minimum borrower's equity for a mortgage secured by a primary residence on an LTV of less than 80%? - Correct answer-0% What is the term used for a loan amount greater than $510,400? - Correct answerJUMBO loan Verification of employment, income, source of funds and payment history must not be older than 120 days before the note date - Correct answer-truuuu FNMA and FHLMC will purchase loans that were closed in the name of a corporation. - Correct answer-false What is the maximum LTV for a second home? (FHLMC) - Correct answer-90% If the LTV is 80% on an agency loan, what must be the borrower's portion of the down payment when purchasing a primary residence? (from his own funds) - Correct answer5% What is the least number of units on the property required for FNMA and FHLMC to purchase a loan with a loan amount of $578,150? - Correct answer-2 The mortgage cannot be signed or guaranteed by a party that had an interest in the property sales transaction. - Correct answer-true FNMA will allow up to 97% LTV/CLTV for purchase transactions where at least one borrower is a first-time homebuyer, and for limited cash-out refinances where FNMA owns the existing mortgage. - Correct answer-true What is the maximum LTV allowed by FNMA on a second home? - Correct answer-90% What is the FHLMC LTV limit on an investment property? - Correct answer-85 What is the maximum seller contribution for a mortgage secured by a primary residence on a 90% LTV? - Correct answer-6% What is the maximum FNMA and FHLMC loan amount limit for a 1-unit property? - Correct answer-$510,400 What is the maximum seller contribution for a mortgage secured by a primary residence on a 95% LTV? - Correct answer-3% What is the maximum seller contribution for a mortgage secured by a primary residence on a 75% LTV? - Correct answer-9% The Ability-to-Repay (ATR) and Qualified Mortgage (QM) rules state that lenders must make a reasonable, good-faith determination of a borrower's ability to repay before consummation of the mortgage loan. - Correct answer-true commercial land is eligible to sell to FNMA - Correct answer-true What is the minimum borrower's contribution for a FHLMC mortgage secured by a primary residence on a 95% LTV? - Correct answer-0% the first page of a borrowers bank statement is acceptable documentation - Correct answer-false A loan with a fixed rate can have a maximum LTV of 97% - Correct answer-true Fixed rate loans that must be manually underwritten, the maximum ratios allowed under FNMA are 45% and are 28/36% under FHLMC - Correct answer-true When a loan is a 90% LTV ARM with a buydown, the annual cap must be 1% - Correct answer-true Maximum seller contributions based on value for mortgages secured by primary residences and second homes - Correct answer-- 9% of value when LTV ratios are less than 75% - 6% of value when LTV ratios are greater than 75% up to and including 90% - 3% of value when LTV ratios are greater than 90% FNMA mortgage secured by second home or investment property- number of financed properties limited to 10 - Correct answer-true Earnest money does have to be verified- with a copy of the borrowers canceled check, bank statement or verification deposit - Correct answer-true housing to income ratio.. front ratio measures borrower's ability to pay on time - Correct answer-true Non retirement income must have a minimum of 3 years remaining to be considered qualifying income - Correct answer-true child support- 3 years minimum - Correct answer-true DTI - back ratio.. liabilities - Correct answer-measures borrowers capacity to pay debts back ratio/ DTI compromised of - Correct answer-monthly housing exp, alimony, payments on revolving accounts, car lease payments, student loans, second home mortgage payment FNMA credit score guidelines - Correct answer-620 for fixed rate/arm submitted through DU 620 for fixed rate 640 for ARM manually underwritten inquiries on credit report - Correct answer-FNMA- 120 days FHLMC- 90 days rate and term refinance - Correct answer-May receive 2% of unpaid principal balance or $2,000, whichever is less Must use own funds to pay debt cash out refinance - Correct answer-borrower intends to receive proceeds from the new loan if the property is proposed construction the appraiser must wait until the property is complete before appraising the property - Correct answer-false it is the ultimate responsibility of the appraiser to ensure that the appraisal is prepared to agency standards - Correct answer-false The appraised value of the subject property must not include value assigned to furniture or any other personal property. - Correct answer-true The appraised value of a property is the amount that the seller thinks the home is worth. - Correct answer-false Although the appraiser makes the value determination, it is up to the lender to assess the appraisal report and to make sure that the property is acceptable collateral for the mortgage loan. - Correct answer-true The photographs of the home, provided by the appraiser must include a front view, back view and a street scene. - Correct answer-true Lenders may choose the appraiser for the appraisal report but the appraiser must meet the requirements of FNMA and FHLMC. - Correct answer-true Earnest money must be from an eligible source of borrower's funds and verified with a copy of borrower's canceled check, bank statement, or VOD. - Correct answer-false What is a "bridge loan" as defined by the agency guidelines? - Correct answer-Funds borrowed for down payment on new home (using current home as collateral)