Safe Math
Tasha is paid bi-weekly at a rate of $2943.40 per pay period. What is Tasha’s GMI?
Answer: $6377.37
($2943.40 X 26) / 12 = ANSWER
What is the purpose of TILA?
Answer: TILAs purpose provides borrowers with information needed to make an informed decision about consumer credit
What does the NMLS stand for?
Nationwide Multistate Licensing System and Registry
What forms are specific to a VA loan?
DD-214, Certificate of Eligibility (COE), and Leave and Earning Statement (LES)
How is a jumbo loan different from a super conforming loan?
A jumbo loan exceeds the loan limits set by the FHFA for a Conventional Conforming loan and is in a NORMAL priced area; whereas, a super conforming loan will exceed the loan limits set by the FHFA for a Conventional Conforming loan, but it meets the other qualifications of a conforming loan and is in a HIGHER cost area such as Hawaii
Damon is currently as a mechanic and is paid $1200 each week. He currently has one credit card with a monthly payment of $300. What is Damon’s GMI?
Answer: $5,200
($1200 x 52) /12 = ANSWER
List out the APR thresholds for a HPML loan.
Who fills out the MU4?
The MLO
Describe how long a borrower will need to pay MIP on an FHA loan.
What disclosure comes from HPA and what does it tell the borrower?
Notice of Right to Cancel PMI and it informs the borrower that they may request that PMI be removed at 80% LTV if certain stipulations are met, or they may wait until 78% LTV for it to be automatically removed.
Katya is paid bi-weekly at a rate of $2,269. She has a PITI payment of $864, a VISA payment of $260, and a Student Loan payment of $250. What is her back-end ratio?
Answer: 28%
GMI = ($2,269 x 26) /12 = $4,916.17
DTI = ($864 + $260 + $250) / $4916.17 = ANSWER
What are the 3 ways that a loan can become a Section 32 loan under TILA? What are all the names for this type of loan?
-Points and fees exceeding 5% for a loan amount of $22,052 or higher
-APR versus APOR thresholds
-Prepayment penalties exceeding 36 months in length or 2% of the principal balance
What is the State authority responsible for setting each year?
Surety bond, net worth, and state fund requirements
What AUS does FHA use?
TOTAL
What disclosure is required by HPA for conventional borrows with less than 20% down?
Notice of Right to Cancel PMI
What would the CLTV be for a purchase transaction where the listing price of the home is $275,000, the appraised value is $270,000, the buyer is applying for a 1st mortgage in the amount of $174,500 and the seller is providing a purchase money second mortgage in the amount of $22,500?
Answer: 73%
List out the 8 Considerations of Ability to Repay.
What two entities created the NMLS?
AARMR and CSBS
What is the down payment requirement for an FHA borrower with a credit score 500-579?
What are the 4 most commonly used indices for adjustments on an ARM?
Margaret and Anthony are in the process of selling their house and upgrading to a larger home to accommodate
for their growing family. With the sale of their home, they will need to pay off their existing mortgage, and make
sure they are paying their portion of property taxes. Their home was appraised for $276,000 and their loan balance
is currently at $178,000. They have a 4.5% interest rate. Their annual HOI cost is $1,050, and their annual property taxes are $2,108. With their new home, their property taxes will increase to $2,402 per year. Their payoff date will be March 14, 2021. What is Margaret and Anthony’s per diem interest? What is Margaret and Anthony’s payoff amount?
Answer: $22.25
Answer: $179,624.25
List the sections of TILA and briefly describe their purpose.
QM: Loans must meet certain standards to be sold on the secondary market
What is a loan originator with temporary authority?
Certain loan originators have temporary authority to act as LO’s in a state for a limited period of time while applying for a state license in that state.
What is the standard entitlement on a VA loan up to $144,000?
$36,000
List the Automated Underwriting Systems and tell who uses each one.