WorksheetsMortgage loan origination google slides # 4
Total questions: 54
Worksheet time: 27mins
Underwriting for qualified mortgages must consider current and reasonably-expected ______ or assets.
income
debts
expenses
liabilities
Underwriting for qualified mortgages must consider ______.
Employment
Property Age
Neighborhood Crime Rate
Loan Officer's Experience
Underwriting for qualified mortgages must consider ______ history.
Credit
Employment
Education
Medical
Underwriting for qualified mortgages must consider current ______ obligations.
debt
income
employment
residence
Underwriting for qualified mortgages must consider ______-related obligations.
Mortgage
Tax
Insurance
Employment
Underwriting for qualified mortgages must consider payments on any ______ loans.
simultaneous
secured
personal
student
Lenders rely on property appraisals to ________.
determine the value of the property
set interest rates
approve loan officers
calculate monthly payments
Lenders rely on property appraisals to ensure that the value of the property is adequate to serve as _______ for the loan.
security or collateral
income
insurance
interest
A licensed appraiser must conduct the appraisal for the property.
True
False
The income approach to appraisal is used for:
Owner-occupied residential properties
Vacant land
Income-producing properties
Agricultural land
The income approach to appraisal is used for which type of properties?
Single-family homes used as a borrower's primary residence
Investment properties
Both A and B
None of the above
The income approach to appraisal would generally not be used for a single-family home being used as a borrower's _________?
primary residence
rental property
investment property
vacation rental
Homeowner's title insurance provides protection for the borrower for potential ________ liabilities.
title
tax
environmental
credit
Which of the following are included as potential issues covered by homeowner's title insurance?
Mechanic's liens
Unreleased mortgages
Other third party rights
All of the above
Obtaining homeowner's title insurance is voluntary on the part of the ________.
homeowner
lender
real estate agent
insurance company
A lender's title policy protects the lender from _______ or undisclosed liens that should have been cleared up prior to closing.
title defects
property taxes
zoning changes
insurance claims
Who is typically required to cover the cost of obtaining a lender's title policy?
The lender
The borrower
The real estate agent
The seller
Real property is defined as...
land and anything permanently attached to it
movable personal belongings
intangible assets like stocks
temporary structures
Fill in the blank: Real property is defined as _________.
land and anything that is permanently affixed to it.
personal belongings and movable items.
intangible rights and interests.
vehicles and equipment.
Fill in the blank: Personal property includes items that _________
can be moved.
are always land.
cannot be owned.
are intangible.
LIENS ARE… (Fill in the blank with the correct definition or explanation of liens.)
A lien is a legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied.
A lien is a type of insurance policy that protects homeowners from property damage.
A lien is a government-issued permit required for property construction.
A lien is a document that transfers ownership of property from one person to another.
Fill in the blank: Liens are __________ that provide a creditor with the right to foreclose.
monetary claims
legal defenses
personal guarantees
insurance policies
Which of the following is an example of a lien?
Lease
Mortgage
Rent
Insurance
Involuntary liens may include...
mortgage liens
mechanic's liens
judgment liens
voluntary liens
Fill in the blank: Involuntary liens may include _________
Tax liens
Personal loans
Unsecured credit cards
Voluntary mortgages
Fill in the blank: Involuntary liens may include _________
Mechanics liens
Personal loans
Credit card debt
Unsecured promissory notes
Fill in the blank: Involuntary liens may include _________
Judgements
Mortgages
Leases
Purchase Agreements
Fill in the blank: Involuntary liens may include _________
Attachments
Mortgages
Deeds of Trust
Agreements
Lien priority is defined as...
the order in which liens are paid off in the event of a foreclosure
the amount of money owed on a lien
the type of property the lien is attached to
the date the lien was created
What is lien priority defined as?
The chronological order in which liens are filed against a property.
The value of the property.
The type of property.
The interest rate on the mortgage.
Fill in the blank: Lien priority establishes the ______ of the liens in the event the property is foreclosed.
priority
duration
location
amount
Lenders want first priority for the mortgage on a property.
True
False
Private mortgage insurance is used to ________.
protect the lender in case the borrower defaults on the loan
protect the borrower in case the lender defaults on the loan
reduce the interest rate for the borrower
increase the down payment required for the loan
Fill in the blank: Private Mortgage Insurance (PMI) is used to provide security to the lender in the event of _______.
default.
early repayment.
property appreciation.
interest rate reduction.
Which of the following is a benefit of Private Mortgage Insurance (PMI) for the borrower?
It increases the interest rate
It allows the borrower to make a smaller down payment
It eliminates the need for a loan
It reduces the loan term
UPFRONT MIP IS COLLECTED ON _______.
FHA loans
VA loans
Conventional loans
USDA loans
Upfront MIP is collected on _________.
All FHA loans
All VA loans
All conventional loans
All USDA loans
Fee simple is ________.
the most complete ownership interest one can have in real property, which is not limited by time and can be inherited
a temporary right to use land for a specific purpose
a leasehold interest that expires after a set period
an easement allowing passage over another's land
Fee simple is the desired form of holding ownership to property because it has the ______ restrictions.
fewest
most
strictest
oldest
Almost all residential mortgage loan transactions involve an estate held in:
Leasehold
Fee simple
Life estate
Joint tenancy
An estate held in fee simple means that _________
the owner has the maximum possible rights to the property, including the right to sell, lease, or bequeath it, and ownership is not limited by time.
the owner can only use the property for a specific period before it reverts to the original owner.
the property can only be inherited by direct descendants of the owner.
the owner must use the property for agricultural purposes only.
Fill in the blank: An estate held in fee simple means that the owner is entitled to the entire property and has "unconditional power of disposition" during his/her lifetime, and the property will descend to his/her heirs upon _____
death
marriage
retirement
sale
COUNSELING IS REQUIRED FOR…
All patients
Only children
Only elderly
No one
Counseling is required for any borrower accepting a high-cost home loan.
True
False
Counseling is required for first-time borrowers accepting a negative amortization loan.
True
False
Counseling is required for any borrower seeking a reverse mortgage loan from the FHA.
True
False
Counseling is encouraged for any borrowers choosing an ARM instead of a fixed-rate loan.
True
False
The Ability to Repay (ATR) rule requires verification of income using _______.
reliable third-party records (such as W-2s, tax returns, payroll statements, etc.)
personal references from friends and family
verbal statements from the borrower
estimates provided by the borrower
The ATR rule requires verification of income using reasonably-reliable third-party documents, such as ________, W-2 forms, payroll statements, banks statements, etc.
tax returns
credit reports
utility bills
insurance policies
Which of the following is NOT an example of a document used for income verification under the ATR rule?
Tax returns
W-2 forms
Payroll statements
Movie tickets
In order to estimate the likelihood that a borrower will repay a loan, banks use a borrower’s credit…
Cards
Limit
Score
Summary
Which of the following best describes a voluntary lien?
A lien that is not recorded in public records
A lien placed on property with the owner's consent, such as a mortgage
A lien imposed by the government for unpaid taxes
A lien resulting from a court judgment
What is the primary purpose of a property appraisal in the mortgage process?
To calculate property taxes
To set the interest rate for the borrower
To establish the borrower's credit score
To determine the market value of the property for loan approval
Which type of insurance protects the homeowner from claims against the ownership of the property?
Hazard insurance
Flood insurance
Private Mortgage Insurance (PMI)
Homeowner's title insurance
