Based on the following scenario, what is the borrower's qualifying ratios under FHLMC guidelines?
PITI: $3,350 monthly
Income: $8,350 monthly
Debt: $595 - car payment - 40.12% / 47.25%
A straw buyer is an individual who is paid to purchase a property and apply for a mortgage for someone
who is...
Xinnix exam
Based on the following scenario, what is the borrower's qualifying ratios under FHLMC guidelines?
PITI: $3,350 monthly
Income: $8,350 monthly
Debt: $595 - car payment - 40.12% / 47.25%
A straw buyer is an individual who is paid to purchase a property and apply for a mortgage for someone
who is unable to qualify for a loan. - True
A borrower's brother would like to give her money to help towards the down payment of her new house.
This would be considered _________ - A gift from a relative and would require a gift letter, as well
as proof that the funds have been transferred to the borrower's account.
A 2/1 buydown typically costs 2.5 discount points. Give or take .25%. - True
A 3-year ARM adjusts every 3 years - True
A 3/1 ARM will have an initial fixed rate for 3 years, then adjust annually. - True
A borrower can use a credit card to pay for their required down payment - False
A borrower is considering a 1-year ARM with a note rate of 4.25%, 2/6 caps and a margin of 2.5%. What
would the borrower's interest rate be for year 2 if the index is at 4.25%? - 6.25%
A borrower paid semi-monthly and a borrower paid bi-weekly have the same number of pay periods per
year. - False
A borrower requesting a jumbo loan will qualify for an agency loan. - False
, A borrower who has made an offer on a property and has provided their pay stubs, bank statements and
W-2s would be issued a commitment letter. - True
A borrower who has made an offer on a property, but has not yet provided their paystubs, bank
statements and W2s would be issued which letter? - Pre-Qualification letter
A co-borrower must be listed on the sales contract. - True
A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments are
amortized over the term of the loan. Once the balance is paid off the mortgage is closed. - True
A HELOC loan has an interest only payment - True
A HELOC loan has an interest only payment. - True
A HELOC second mortgage may or may not be fully disbursed at closing. Typically, it has a variable
interest rate with an interest only payment. There is a designated draw period and repayment period. -
True
A HUD consultant would not be required for an FHA 203(k) standard program. - False
A liability not listed on the credit report will typically need to be included on the loan application. -
True
A loan officer would perform all of the following functions EXCEPT: - Approve the loan
A non-arm's length transaction occurs when the borrowers or any other party to the transaction have a
direct relationship with another party to the transaction (including, but not limited to, the employer,
lender, broker or appraiser). - True
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card for the summaries. There is no membership needed.
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 PatrickKaylian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.34. You're not tied to anything after your purchase.
