How is LTV calculated

Loan amount requsted or prinicpal balance divided by appraisal value or purchase price (which ever is less).

In Calculating the tme limitations forthe to rescind, what days are not considreed "Business" days?

Sunday and federal public holidays (if the fed's dont work, they don't enforce).

Is a Va Loan assumble?

Yes as long as the buyer qualifies and the funding feed is .5 percent for the VA assuption.

What is a 2/1 temporary buy down?

A loan that starts with a payment based on a rate 2% lower than the actual rate for the first year, 1% for the second year and at the actual rate year three and beyond. 

It is a fixed rate product. 

What is the minimum down payment on a FHA loan

3.5 percent

What is the front and back -end DTI ratio for a FHA loan?

31% / 43%

28/36

1 percent

What does SRP stand for?

Service Release Premium;

 this is the amount a lender would receive over and above the current outstanding balance as a premium on sale of the loan in the secondary market.

NA/41%...There is no front end ratio for VA loans.

If a loan Servicer transfers, sells, or assigns the loan, the servicer must notify the borrower at least____days before the effective date of the loan transfer?

15 days from the seller of the loan and 15 days after the loan has been transfered is the new servicer required to send the notice

What is the front and back-end ratio for a USDA loan?

29%/41%

Under FNMA guidelines, how long does a borrower have to move into a property once they close on an Owner Occupied loan?

60-days

What is the maximum LTV for FHA loans?

96.5 %

Can a VA funding fee be waived?

Yes, in case of a service connected disability or surviving spouse of a veteran who had a service connected disablity.

What is the difference in the calculation of the front-end and back-end ratio?

Front is the housing payment (PITI) calculated from the gross monthly income and the Back-end is the house payment plus the consumer debt as compared to the monthly gross income..

What is difference between LTV and Cltv?

LTV takes into cosideration ony the first mortage balance and the CLTV considers both the first and all other mortgages on the home.

What does FHA stand for?

Federal Housing Administration

What best describes

a FHA loan?

A loan that is backed by the Federal Government.

5.5 percent

What is the maximum LTV for VA loans?

100 percent

ECOA - 30 days from application 

Who is required to be given a right to rescind by the lender?

Any person signed on the note or who has an ownership intrest in the property being used to secure the loan must be given

2 copies. 

Generally, account information, including late payments and other adverse info, is kept on a  credit report for no longer than how many years?

Seven (7) years.

What type of mortgage DOES NOT require the borrower to payback the loan as long as he continues to live in the home?

HECM or Reverse Mortgage.

How is GNMA different than FNMA and FHLMC?

GNMA is a government agency, the others are not GNMAinsures FHA, VA, USDA and HECM. FNMA and FHLMC purchase conventional mortgage loans.

What is a Chain of Title on a property?

A record of all transfers of ownership of a subject property.

What does rescission mean?

A legal remedy to void a contract between two parties, restoring each to the position held prior to the transaction.

For both closed or open-end credit, how long is the rescission period if the creditor fails to provide a rescission notice that meets the requirements for notification, or fails to disclosure all the terms of the lending transaction as required under TILA.

Three (3) years

30/15 and 180/360 represent what type of loan?

Balloon Mortgage;

30 year amortization with a 15 year ballon

What is the maximum COE on a VA loan, expressed in a dollar amount?

$36,000

What is the loan entitlement?

4 times the COE

Which type of loan has no monthly mortgage insurance?

VA loans

What does PFC stand for?

Pre Paid Finance Charge.

Which of the following do not affect the VA funding fee?

                       A) Marital status

                       B) Down payment

                       C) Disability

A) Marital Status

25 percent

What factor doesn't affect the money received in a HECM loan?

Age of property

What is the funding fee on a USDA loan?

2 percent

What does GNMA stand for?

Government National Mortgage Asscociation

25 % or more

It is the standard application for a mortgage loan.

Why does an abstractor carry E & O insurance?

Errors and Omissions Insurance is carried by an abstractor to protect against mistakes that may occur in the title search.

Are the front-end and back-end ratios calculated using Gross or Net income?

Gross monthly income

$2,925 $1,350 x 26 weeks divided by 12 months gives monthly average

Seperated

If a  loan servicer transfers, sells, or assigns the loan, the servicer must notify the borrower at least ___ days before the effective date of the loan transfer?

15 days from the seller of the loan and 15 days after the loan has been transferred is the new servicer required to send the notice.

Certificate of Reasonable Value

NA / 41% ...

There is no front end ratio for VA loans.

28 / 36

What is the front and back-end ratio for a USDA loan?

29% / 41%

Under FNMA guidelines, how

long does a borrower have to move

into a property once they close on an

Owner Occupied loan?

60 - days

100% / 102%

Can overtime income always be used to qualify for a loan?

What does FHLMC stand for?

Federal Home Loan

Mortgage Corporation

What is the only term for a USDA loan?

30 years

You may refer to a borrower to all of the following  except,

       a) single                    c) divorced

     b) married                 d) unmarried

c) Divorced

How many days does a seller have to wait to sell a home for profit if the new homebuyer is using a FNMA loan product

Right away, zero days

What does POC stand for?

Paid out of Closing

Which FNMA form number is known as the

Transmittal Summary?

1008

What is the difference between the VOE and the VOD?

VOE verifies employment and year to date income and the VOD verfies the status and balance of financial account(s)

FEMA stand for?

Federal Emergency Management Agency

What three items best describes what a lender or underwriter should consider when marking a credit decision?

Credit, capacity and collateral

(C-3)

4506T

Is there a down payment on a USDA loan?

No

What is a YSP? 

(Yield Spread Premium)

A borrower makes $18 per hour , working a 40 hour work week, what is his gross monthly income?

$3,120 per month Breaks down as $18 x 40 x 52

divided by 12 months.

When is the GFE required to be provided to the customer?

A Certificate of Eligibility is required for what type of laon?

VA loans

6.5 percent 

Intrest Rate Reduction Refinance Loan

- VA Streamline

RESPA

- Regulation X (x-ray) states that it must be provided within 3 business days after application on purchase transactions.

Under what circumstances would the debt of a non-purchase spouse be included in the applicant's qualifying ratios?

What does FNMA stand for?

Federal National Mortgage Association

Voluntary: is one that the owner gives consent to the lien such as a mortgage.

Involuntary: is one such as a Tax Lien, or other unpaid debt.

When is the Servicing Transfer Statement required to be provided to the customer from the lender who is sell the loan?

(RESPA) requires a 15 day notice prior to the effective dates of transfer.

New servicers is to also provide notice

15 days after the transfer. 

Copies of income tax returns for the past two years and info on current income if commissions represents 25% or more of the annual income.

What is the key information on the Mortgage Servicing Disclosure Statement?

The likelihood (express as a %) that the serviceing on the mortgage will be sold or transferred to another party.

When is the Notice to Receive Credit Score and to Dispute Its Accuracy required to be provided to the customer and which regulation mandates it?

FACTA and due during the loan transaction.

What is a mortgage

Fraud Warning Notice?

Notice from the FBI that fraud is invested by FBI and is punishable by up to

30 years in federal prison an $1,000,000 or both.

The dollar amount of the Net adjustment for each comparable sale should not exceed what percentage of the sales price of the comparable?

Net is 15%,

(single line adjustment is 10% and Gross adjustment is 25%)

Homeowners who are required to carry homeowner's flood insurance can obtain it through what federal program?

FEMA's National Flood Insurance Program

(Federal Emergency Management Insurance Program).

Before or at the time of the referral.

When is the ABA disclosure required to be provided to the customer?

What are the disclosures to alert consumers about the status of a loan application?

1) Notice of Action Taken

2) Notice of Adverse Action

3) Notice if Incomplete Application

What is table funding?

A type of wholesale lending arrangement where mortgage brokers are permitted to originate, and close a loan in their name for a wholesaler who has made the credit decision and funded the loan with an immediate assignment by the broker after the closing.

Generally, how long do unpaid tax liens remain on the credit report?

Indefinitely, however, some jurisdictions have different requirements with greater consumer protections.

Reverse mortgage require income and credit approval

(True or False)

False 

In a VA loan, what is the upfront funding fee on the loan?

2.15 for active duty (first time users)

and 2.4 for reserve or guard.

What agencies gather and sell info regarding an applicant's credit in the form of credit reports?

Consumer Reporting Agencies (CRA's)

Equifax, Experian and Trans Union.

How long does a bankruptcy remain on a credit report?

Chapter 7 - 10 years

Chapter 13 - 7 Years

Which type of ARM allows the borrower to choose from a variety of payments options each month?

Payment Options Arms:

allows a borrower to choose from 4 options to make thier payment each month

30yr payment, 15yr payment, Interest only

pmnt or a minimum payment resulting in negative amortization.