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 veteran may exchange a portion of their entitlement for cash. - False Judgments and tax liens are requ...
Xinnix SOAR Mock Exam | 70 Questions
with 100% Correct Answers
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.
Correct Answer: True
A veteran may exchange a portion of their entitlement for cash. Correct Answer: False
Judgments and tax liens are required to be paid off at or prior to loan closing. (FNMA/FHLMC)
Correct Answer: True
Gross rent may be considered effective income when an applicant is planning to rent their
current residence after closing on the purchase of their new home. Correct Answer: False
A simultaneous second mortgage is obtained at the same time as a first mortgage. Correct
Answer: True
A 2/1 buydown typically costs 2.5 discount points. Give or take .25%. Correct Answer: True
Most loans do not have a prepayment penalty. Correct Answer: True
What are the four General Styles of Communication? Correct Answer: Expresser, Relater,
Driver, Analytic
VA requires connection to a public or community water/sewer disposal system if required by
local building, planning, or health authorities. Correct Answer: True
A 3/1 ARM will have an initial fixed rate for 3 years, then adjust annually. Correct Answer:
True
HOA dues are included in the PITI calculation. Correct Answer: False
All of the following documents must be provided by the builder to the mortgage company on an
FHA new construction loan prior to the loan being cleared to close EXCEPT: Correct Answer:
Appraisal Certificate
DU does not consider non-occupant income as qualifying income. Correct Answer: True
To sympathize with a customer lets them know you identify with the way they feel. Correct
Answer: True
FNMA and FHLMC are fully backed by the U.S. Government. Correct Answer: True
, What is the qualifying rate for a 3/1 ARM with a note rate of 4.25% and 2/6 caps? The fully-
indexed rate is 6.38%. Correct Answer: not 4.25%
Verification of employment, income, source of funds and payment history must not be older than
______ days prior to the note date. Correct Answer: not 60
A borrower who has made an offer on a property and has provided their pay stubs, bank
statements and W2s would be issued a Commitment Letter. Correct Answer: True
What is not part of the ABCD's of an effective LO/Processor meeting? Correct Answer: Deliver
How long does a consumer have to shop for a mortgage without the credit inquiries affecting
their score? Correct Answer: 30 days
What is the largest house payment that Mr. Coulter can have with his current income of $75,500
per year considering he just bought a car with a payment of $525 per month? (FNMA) Correct
Answer: $1,740.00
One month of the borrower's current house payment must be included when calculating the new
loan amount for a cash-out refinance. Correct Answer: True
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). Correct Answer: True
The builder must provide an appraisal certificate to the mortgage company on an FHA new
construction loan prior to closing. Correct Answer: False
If a veteran has previously used their VA entitlement and it has not yet been restored, their COE
may show an available amount which is less that the VA maximum allowable entitlement.
Correct Answer: 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 ___________ Correct Answer: 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.
Unless a borrower can document extenuating circumstances, they must wait at least 7 years from
a Chapter 7 bankruptcy or foreclosure to apply for conventional financing. Correct Answer:
False
What is the maximum seller contribution allowed for a primary residence at 85% LTV?
(FNMA/FHLMC) Correct Answer: 6%
The maximum LTV for an FHA cash-out refinance is 85%. Correct Answer: False
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 or Stuvia-credit 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 Classroom. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.49. You're not tied to anything after your purchase.
