Mortgage brokers questions with complete solutions

Mortgage brokers

Mortgage sources - correct answer ✔✔- commercial lender

-savings and loans

- credit union

- mortgage banker

-mortgage broker



Mortgage loan officer - correct answer ✔✔- speaks to the client

- qualifies the client

- walks the client through the process from qualifying to closing



Mortgage banker - correct answer ✔✔a company, individual or institution that originates mortgages.
Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages



Mortgage broker - correct answer ✔✔an intermediary who brings mortgage borrowers and mortgage
lenderes together, but does not use its own funds.



A mortgage broker gathers paperwork from a borrower, and passes that paperwork along to a mortgage
lender for underwriting and approval. The mortgage funds are then lent in teh name of the mortgage
lender. A mortgage broker collects an origination fee and/or yield spread premium from the lender as
compensation for its services



Pre-approval - correct answer ✔✔an evaluation of a potential borrower by a lender that determines
whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender
would be willing to lend



-80% of loan application

-check client's credit

-property address to be determined