Prequals
Do you need to assign an LOA when you receive a prequal application?
Yes, best practice is to get an LOA assigned as soon as possible.
True or False- Sending a Letter of Incompleteness will satisfy Reg B?
True.
What type of disposition is used on a prequal if you have issued a prequal approval letter but they let you know they no longer need the loan?
Approved not Accepted.
Modifications and/or extensions are covered HMDA covered loans? True or False.
False.
What must be run on a prequal application for Secondary Market or if no specific mortgage product has been indicated?
AUS, best practice is to run a 30 year fixed.
By obtaining CAP within 30 days means you have the following?
Complete URLA, required income documentation, assets.
An applicant provides an application. The officer provides a conditional approval pending verification of income and assets and requests paystubs and account statements to verify the income and assets. Applicant then contacts the officer and states they do not wish to continue. What type of disposition should the officer use?
Withdrawn.
What is a dwelling?
Any residential structure, whether or not attached to real property.
How many calendar days do you have to disposition the loan after a prequal letter expires?
15 days.
Reg B says you have how many days to notify an applicant of the conditional approval or denial of the request after receiving an application?
30 days.
For the officer to use a disposition of incomplete, what must the file contain?
Letter of Incompleteness (NOI) (20 day letter).
What is the definition of temporary financing? Are these loans HMDA covered?
A loan or line of credit that is designed to be replaced by separate permanent financing by any financial institution to the same borrower at a later time. They are not HMDA covered.
Who should underwrite prequal applications for Portfolio products?
The Officer using a PFIA and/or BFIA.
In Encompass, has Reg B been satisfied if a borrower applies for a 15 year fixed mortgage with a Reg B date of 7/15/21? An accurate URLA is collected and the preliminary conditions are received from the borrower with a Documentation Milestone finished date of 7/30/21. PML underwrites the request on 8/17/21 and provides a conditional approval with the officer communicating the decision on 8/18/21.
Yes.
What information is needed to relay to the Disposition Team when you are dispositioning a loan in Encompass or LRMS?
Conversation Log/Loan Mail with the subject “Disposition Type” and include date conversation took place and why application is being dispositioned.
If an application is given to you in person by the borrower and later you realize the Demographic Information has been left blank, what should you do?
Fill in the information based off of visual observation and surname. The boxes on the application should be marked indicating how the information was collected.
Prequal approval letters will give the applicant how many calendar days to submit a purchase contract and additional required documentation or the file will be considered approved not accepted? Can you issue another prequal approval letter for an additional 90 days on this same loan request?
90 days, yes you can issue another prequal approval letter for an additional 90 days. After that, you would have to disposition and start another loan request.
What is conditional approval?
The bank issues an approval subject only to satisfying underwriting and creditworthiness conditions. These include: verification of income, assets and employment, credit report, acceptable appraisal, PMI qualification.
What type of disposition should be used if a counter offer is made and accepted but the new terms require the original application to be dispositioned and a new application started?
Denial.
Should we collect Demographic Information on a loan Guarantor that executes a Separate Guarantee Agreement?
No.