CMC Residential and Commercial Financing 2

Question 1

A borrower's debt-to-income (DTI) ratio is 48%. Which loan program is most likely to allow this ratio for a conventional mortgage?

Accepted Answer

Fannie Mae with DU approval and compensating factors

Answer

FHA with compensating factors

Answer

VA with standard underwriting

Answer

USDA Rural Development loan

Question 2

In commercial real estate lending, what does the term 'recourse' mean?

Accepted Answer

The borrower is personally liable for the debt beyond the collateral

Answer

The lender can only foreclose on the property

Answer

The lender must give borrower time to cure default

Answer

The loan can be transferred to another borrower

Question 3

Which of the following best describes a 'blanket mortgage' in commercial financing?

Accepted Answer

A mortgage covering multiple properties under a single loan

Answer

A loan with no prepayment penalty

Answer

An adjustable-rate mortgage tied to Treasury index

Answer

A loan requiring no down payment

Question 4

What is the primary difference between a fixed-rate mortgage and a hybrid ARM?

Accepted Answer

Hybrid ARMs have an initial fixed period before converting to adjustable rates

Answer

Fixed-rate loans are only for primary residences

Answer

Fixed-rate loans always have lower interest rates

Answer

Hybrid ARMs require a higher credit score

Question 5

A commercial property generates $180,000 NOI and is valued at $2,000,000. What is the capitalization rate?

Accepted Answer

9.0%

Answer

8.0%

Answer

10.0%

Answer

11.1%

Question 6

Under the Home Mortgage Disclosure Act (HMDA), which data point must lenders report regarding loan pricing?

Accepted Answer

Rate spread between the loan APR and the Average Prime Offer Rate (APOR)

Answer

Loan origination fee only

Answer

Total closing costs as a percentage of loan amount

Answer

Borrower's credit score tier

Question 7

Which loan type is specifically designed for the purchase and renovation of a single-family property using one loan?

Accepted Answer

Both A and C

Answer

203(k) Rehabilitation Loan

Answer

USDA Direct Loan

Answer

HomeStyle Renovation Mortgage