CMP Conventional Loan Programs and Secondary Market 2

Question 1

Freddie Mac's automated underwriting system is called:

Accepted Answer

Loan Product Advisor (LPA)

Answer

Desktop Underwriter (DU)

Answer

Total Mortgage Scorecard

Answer

TOTAL (Technology Open To Approved Lenders)

Question 2

What is the maximum debt-to-income (DTI) ratio typically approved on a conventional loan when the automated underwriting system (AUS) issues an Approve/Eligible finding?

Accepted Answer

50%

Answer

36%

Answer

41%

Answer

45%

Question 3

How long must a borrower typically wait after a Chapter 7 bankruptcy discharge before qualifying for a conventional conforming loan under Fannie Mae guidelines?

Accepted Answer

4 years

Answer

1 year

Answer

2 years

Answer

7 years

Question 4

Under Fannie Mae guidelines, which of the following is an acceptable source of gift funds for a conventional loan down payment?

Accepted Answer

A blood relative of the borrower

Answer

The property seller

Answer

A real estate agent involved in the transaction

Answer

The mortgage lender providing the loan

Question 5

What is a mortgage-backed security (MBS) in the context of the secondary mortgage market?

Accepted Answer

A bond-like investment backed by a pool of mortgage loans

Answer

An insurance policy protecting lenders from borrower default

Answer

A government guarantee on all conventional mortgages

Answer

The lender's escrow account for tax and insurance payments

Question 6

When a conventional loan is sold to Fannie Mae, the originating lender typically retains the right to:

Accepted Answer

Service the loan and collect monthly payments on Fannie Mae's behalf

Answer

Charge the borrower additional origination fees post-sale

Answer

Modify the loan terms after the loan is sold

Answer

Foreclose on the property without Fannie Mae's approval

Question 7

What is the minimum credit score generally required to qualify for a conventional conforming loan?

Accepted Answer

620

Answer

580

Answer

660

Answer

700