100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
SOMB II Practice Test. £6.50   Add to cart

Exam (elaborations)

SOMB II Practice Test.

 0 view  0 purchase

SOMB II Practice Test.

Preview 2 out of 6  pages

  • June 9, 2024
  • 6
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
All documents for this subject (147)
avatar-seller
modockochieng06
SOMB II Practice Test

When refinances as a percentage of total originations rise, does profitability at large
banks tend to rise or to fall? - ANS-Fall

What are the top three Mortgage lender's main sources of income? - ANS-- Fees
negotiated at origination
- Gain on sale
- Interest Income

Interest income earned at the note rate from the date a loan closes until it is sold
belongs to? - ANS-The lender

Which type of loan sale generates the most revenue for the lender on the date the loan
is sold? - ANS-Servicing released

What are the two additional mortgage lender's main sources of income? -
ANS-Servicing Release Premium (SRP)
Servicing Income

What are the feature adjustments that could change the price an investor will pay for a
loan? - ANS-- Geography
- Loan Amo.
- FICO score
- LTV
- Property Type
- Loan features
- CRA eligibility

A loan for which an investor pays exactly 100% of the loan's unpaid principal balance is
said to have sold for - ANS-Par

As interest rates fall, bond/security/MBS prices - ANS-Rise

In a basic REMIC structure, when do the B class holders receive their principal
payments? - ANS-After the A class holders have been completely repaid

, When short-term interest rates are higher than long-term interest rates, what is the yield
curve is said to be? - ANS-Inverted

Is inflation a type of fixed-income risk? - ANS-Yes

Which type of a strip security is a natural hedge for a portfolio of MSRs? - ANS-A
principal-only strip

Under what conditions are borrowers most likely to "float" a rate quote for a mortgage? -
ANS-When interest rates are declining

What loan attributes create a pricing adjustment that increases the rate charged to the
borrower? - ANS-- Occupancy status
- Geographical location

For what does SRP stand? - ANS-Servicing Released Premium

When you sell a loan "servicing-retained" into the capital markets, for what are you
responsible? - ANS-- Pay property taxes and insurance on behalf of the loan borrowers
- Remitting principal and interests to the investor
- Receive and account for monthly payments received from the borrower

Under what circumstances would you buyup a guarantor fee (G-Fee)? - ANS-When
your excess servicing is a positive number

What loan attributes cause investors to pay-up for certain loan pools? - ANS-- Small
loan balances
- Geographic location
- Low LTV's

Which delivery commitment offers a lower purchase price and the least amount of
income? - ANS-Best efforts

If you fail to deliver loans under a best efforts delivery, are you required to pay a pair-off
fee? - ANS-No

Firms are allowed to deliver whole loans to FNMA or FHLMC without being an approved
seller: - ANS-Never

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £6.50. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75759 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now

Start selling
£6.50
  • (0)
  Add to cart