Mortgage Loan Originator Loan Underwriting and Processing

Question 1

What does the acronym 'DTI' stand for in mortgage underwriting?

Accepted Answer

Debt-to-income

Answer

Down-payment to income

Answer

Deferred-tax index

Answer

Default threshold indicator

Question 2

Under conventional underwriting guidelines, the maximum back-end DTI ratio typically allowed without compensating factors is:

Accepted Answer

43%

Answer

28%

Answer

36%

Answer

50%

Question 3

What is the minimum FICO credit score required for FHA loan eligibility with 3.5% down payment?

Accepted Answer

580

Answer

620

Answer

640

Answer

660

Question 4

In mortgage underwriting, 'seasoning' of funds typically refers to:

Accepted Answer

How long funds have been in the borrower's account

Answer

Age of the property

Answer

Duration of employment

Answer

Length of the loan term

Question 5

Which automated underwriting system (AUS) is used by Fannie Mae?

Accepted Answer

Desktop Underwriter (DU)

Answer

Loan Prospector (LP)

Answer

Total Scorecard

Answer

GUS

Question 6

What does LTV stand for, and what does a lower LTV indicate?

Accepted Answer

Loan-to-value; lower LTV means greater borrower equity and less lender risk

Answer

Lender-to-value; lower LTV means higher loan amount

Answer

Loan-to-value; lower LTV means higher interest rate

Answer

Lien-to-value; lower LTV means less borrower equity