Show:
Miscellaneous
Values/Appraisals
Title
Loan Application
Underwriting
100
Is the same application used for Fannie Mae and Freddie Mac Loans? Yes or No
Yes
100
Market value is usually defined as the: a) original price of the property when first purchased or built, b) total cost of construction at the time built, c) price if placed on the open market for a reasonable period of time with no undue pressure on either buyer or seller, d) highest price recently paid for a similar property in the same neighborhood.
c) price if placed on the open market for a reaonable period of time with no undue pressue on either buyer or seller.
100
All of the following are valid methods for obtaining assurance of good time EXCEPT: a) abstract and opinion b) title insurance c) credit report on seller d) Torrens system
c) Credit report on seller
100
What is the name of the form required to begin any formal loan processing?
What is Uniform Residential Loan Application
100
Processing a mortgage loan includes all of the following EXCEPT: a) determining the ability of the borrower to repay the loan b) estimating the value of the property c) analysing the marketability of the collateral's title d) checking the Dun and Gradstreet listing for the lender
d) checking Dun and Bradstreet listing for the lender
200
What is the average age of a real estate loan before it is paid off - either through refinancing or selling the property?
7-8 years
200
Harry is a licensed appraiser in Virginia. The MOST important skill for Harry to have is a/an: a) knowledge of construction b) background in real estate brokerage c) ability to collect pertinent data d) experience in tax assessments
c) ability to collect pertinent data
200
What document is required to reveal errors in legal descriptions or discover encroachments and easement infractions?
What is the survey?
200
Financial statements follow a standard format that lists what two elements?
Assets and liabilities
200
The biggest change in mortgage financing has been the: a) switch to a 15 year amortized loans b) the average age of a real estate loan c) the loan to value ratio d) regular payments of principal and interest
c) loan to value ratio
300
When qualifying a salaried borrower receiving W-2 income, lenders use the following: a) net income after taxes b) average of income for past 2 years c) gross income d) year-to-date income averaged
c) gross income
300
The Martin Federal Building is an historic 5 story office building with no elevator and no practical way to install one. This is an example of: a) physical deterioration b) functional obsolescense c) economic obsolescence d) tax write off
functional obsolescence
300
Which of the following methods for obtaining assurance of good title would only involve providing a synopsis of a property's recorded history to an attorney? a) abstract and opinion of title, b) title insurance c) Alta policy d) Torrens certificate
a) abstract and opinion of title
300
What is the ratio balance considered to be ideal when comparing assets to liabilities to determine a good credit risk?
2:1 ratio of current assets as compared to liabilites
300
What term describes the evaluation of risks involved when issuing a new mortgage or deed of trust?
What is underwriting
400
The majority of the information collected on the application includes all of the following EXCEPT: a) family size b) ages of dependent children c) sources of income d) employment history e) average age of properties in surrounding neighborhood.
e) average age of properties in surrounding neighborhood
400
Sarah Smith is interested in purchasing a property that she will use as a rental property. She could estimate value by using the: a) current tax assessments b) cost approach c) income approach d) gross rent multiplier
d) gross rent multiplier
400
This expanded policy is required by loans being sold in the secondary market for the added protection it provides for protection against any unrecorded easements or liens, rights of parties in possession of the subject property, mining claims, water rights, and additional negotiated special items pertinent to the property involved?
What is the ALTA policy - issued on the American Land Title Association form
400
What form is signed which allows the lender to verify assets?
Deposit verification
400
What was the percentage required of a collateral property's value prior to allowing higher loan-to-values?
50 to 60 %
500
The employment verification completed by the employer includes all of the information, EXCEPT: a) wages verified b) length of employment c) number of sick days and vacation days d) prognosis for continued employment d) prospects for advancement
c) number of sick days and vacation days
500
Jack Martin is appraising an office building. To determine an estimate of value, he will: a) divide the gross income by the capitalization rate, b) divide the net income by the capitalization rate c) multiply the gross income by the capitalization rate d) multiply the net income by the capitalization rate
b) divide the net income by the capitalization rate
500
What system of allows title to only be searched as far back as the previous owner and assumes the transactions prior to the last search were accurate and legal?
What is Torrens system - the state is the guarantor of the title in the event of a claim
500
What regulation requires the lender to collect information on ethnicity?
Home Mortgage Disclosure Act - see page 4 of application
500
If a borrower is self-employed, what documents are required to determine income?
2 to 3 years of complete tax returns