Mortgage Terminology Quiz

What does AIR Waiver stand for?

• Appraiser Independence Requirements Waiver

• Appraisal Inspection Report

• Appraisal Independence Rate

• Reducing the number of appraisers in the market

What is Amortization?

• A fee charged by lenders to process a loan application

• Repayment of a debt in equal installments of principal and interest

• A request for financing which involves completing a form detailing income, assets, debt and other information

• The listing price of a property

What is an Application Fee?

• A fee charged by lenders to process a loan application

• A report prepared by a licensed appraiser

• The annual rate charged for borrowing

• The listing price of a property

What does an Appraisal involve?

• A request for financing

• A report prepared by a licensed appraiser giving an estimate of a property's fair market value

• A fee charged by an appraiser

• The annual rate charged for borrowing

What is the APR (Annual Percentage Rate)?

• The annual rate charged for borrowing, expressed as a single percentage

• A list of questions that will be asked as part of upcoming quality control audits

• A mortgage loan subject to changes in interest rates and payments based on market conditions

• The purchase or sale of a property in its existing condition without repairs

What does ATR (Ability to Repay) require creditors to do?

• Make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling

• Charge a fee for processing a loan application

• Provide a report on the fair market value of a property

• Manage Branch Sales Managers, MLO's, and MLOA's

What is Bankruptcy?

• A legal proceeding whereby a person's assets are turned over to a trustee and used to pay off outstanding debts

• A ratio that indicates what portion of a person's monthly income goes toward paying debts

• A list of questions that will be asked as part of upcoming quality control audits

• The listing price of a property

Who is a Borrower?

• A person who manages LP's and LP Team Leads

• A licensed individual hired to determine value and condition of a property

• A person who has been approved to receive a loan with an obligation to repay it

• A person who manages Branch Sales Managers, MLO's, and MLOA's

What does the acronym BSM stand for in the context of DHI Mortgage Terms?

• Branch Sales Manager

• Branch Service Manager

• Business Sales Manager

• Business Service Manager

What is the role of a Builder according to the DHI Mortgage Terms?

• A person who manages MLO's and MLOA's

• A residential home construction company

• A person responsible for loan repayment

• A person who prepares closing documents