Mortgage Loan Origination Activities Questions and Answers

Question 1

A borrower has a gross monthly income of $6,000.
Their proposed monthly mortgage payment (PITI) is $1,800.
They also have a $400 monthly car payment and a $200 monthly student loan payment.
What is their back-end debt-to-income (DTI) ratio?

Accepted Answer

40%

Answer

30%

Answer

36%

Answer

50%

Question 2

On the Uniform Residential Loan Application (URLA), which section requires the borrower to disclose if they are a party to a lawsuit or have any outstanding judgments?

Accepted Answer

Section 5: Declarations

Answer

Section 1: Borrower Information

Answer

Section 2: Financial Information – Assets and Liabilities

Answer

Section 4: Loan and Property Information

Question 3

Under the Fair Credit Reporting Act (FCRA), which of the following actions requires a "permissible purpose" to be legally performed by a mortgage loan originator?

Accepted Answer

Accessing a consumer's credit report.

Answer

Discussing general loan products with a potential applicant.

Answer

Providing a Loan Estimate after receiving a completed application.

Answer

Verifying the applicant's employment history.

Question 4

A mortgage loan originator is concerned that a property's appraisal value might come in too low. Which of the following actions is permissible under the Appraiser Independence Requirements (AIR)?

Accepted Answer

Asking the appraiser to consider additional, relevant comparable sales not included in the initial report.

Answer

Telling the appraiser the minimum value needed for the loan to be approved.

Answer

Withholding payment from the appraiser because the value came in lower than expected.

Answer

Selecting an appraiser specifically because they are known for providing high valuations.

Question 5

According to the TILA-RESPA Integrated Disclosure (TRID) rule, a lender must provide the Loan Estimate to a borrower within what timeframe after receiving a completed loan application?

Accepted Answer

No later than 3 business days

Answer

At the time of application

Answer

No later than 7 business days

Answer

At least 3 business days before consummation

Question 6

When evaluating a salaried borrower's qualifying income, which of the following would an underwriter be LEAST likely to consider stable and recurring for the purpose of loan qualification?

Accepted Answer

A one-time bonus received for a special project completed last month.

Answer

The borrower's base salary from a full-time job held for five years.

Answer

Consistent overtime income received monthly for the past three years.

Answer

Commission income that has been consistently earned for the past two years.

A borrower has a gross monthly income of $6,000.Their proposed monthly mortgage payment (PITI) is $1,800.They also have a $400 monthly car payment and a $200 monthly student loan payment.What is their back-end debt-to-income (DTI) ratio?

A borrower has a gross monthly income of $6,000.
Their proposed monthly mortgage payment (PITI) is $1,800.
They also have a $400 monthly car payment and a $200 monthly student loan payment.
What is their back-end debt-to-income (DTI) ratio?