RMLO – Questions With Complete Solutions (Solved)
An unincorporated business that is individually owned and managed by an
individual which assumes full liability Right Ans - Sole Proprietor
What is not a liquid asset? Right Ans - Equity in a RE investment
What fact about a borrower may an underwriter take into consideration when
approving a loan app Right Ans - income
Which would not be considered an interested party contribution? Right
Ans - Down Payment Assistance Programs
Where to view info on repos and collections? Right Ans - Public Records
Which of the following is not a three c of underwriting? Right Ans - courage
Ratio of principle of balance Right Ans - LTV (Loan to Value)
Calculated by dividing the loan amount to the lower of appraised value
Right Ans - LTV
Which of the following would be considered in a borrowers housing expense
to income ratio Right Ans - insurance
Protects the lender in case a mortgage loan payment cannot be made Right
Ans - Mortgage Insurance
Two categories of conventional loans Right Ans - Conforming/non-
conforming
Which government agency backs FHA loans Right Ans - HUD
Lender authorized to approve loans for fa insurance Right Ans - Direct
Endorsement
FHA sellers are permitted to provide financing concessions up to 6% of what?
Right Ans - 6% of the sales price
An unincorporated business that is individually owned and managed by an
individual which assumes full liability Right Ans - Sole Proprietor
What is not a liquid asset? Right Ans - Equity in a RE investment
What fact about a borrower may an underwriter take into consideration when
approving a loan app Right Ans - income
Which would not be considered an interested party contribution? Right
Ans - Down Payment Assistance Programs
Where to view info on repos and collections? Right Ans - Public Records
Which of the following is not a three c of underwriting? Right Ans - courage
Ratio of principle of balance Right Ans - LTV (Loan to Value)
Calculated by dividing the loan amount to the lower of appraised value
Right Ans - LTV
Which of the following would be considered in a borrowers housing expense
to income ratio Right Ans - insurance
Protects the lender in case a mortgage loan payment cannot be made Right
Ans - Mortgage Insurance
Two categories of conventional loans Right Ans - Conforming/non-
conforming
Which government agency backs FHA loans Right Ans - HUD
Lender authorized to approve loans for fa insurance Right Ans - Direct
Endorsement
FHA sellers are permitted to provide financing concessions up to 6% of what?
Right Ans - 6% of the sales price
