Copy and Edit

Altisource Underwriter / Processor Test

Description

Altisource Underwriter / Processor Test
Tim Mergler
Quiz by Tim Mergler, updated more than 1 year ago
Tim Mergler
Created by Tim Mergler almost 8 years ago
28
0
0

Resource summary

Question 1

Question
Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI when their loan balance is less than ____, or a lender may collect PMI until ____ loan-to-value is reached.
Answer
  • 65%; 50%
  • 78%; 62%
  • 80%; 65%
  • 80%; 78%

Question 2

Question
What is the purpose of Regulation B?
Answer
  • To prohibit discriminatory treatment of credit applicants
  • To require disclosure of settlement costs
  • To regulate referral fees
  • To prohibit misleading advertisements for mortgage loans

Question 3

Question
The Real Estate Settlement Procedures Act (RESPA) applies to:
Answer
  • Residential loans
  • Residential lot loans
  • Commercial loans
  • Residential investment properties such as condos and duplexes

Question 4

Question
A(n) __________ is a loan with an interest rate that is adjustable and also offers a borrower a number of payment choices, such as 30- or 15- year P&I, interest-only, or a 1% minimum payment, which may result in negative amortization.
Answer
  • Adjustable- rate mortgage
  • 3/1 ARM
  • Payment Option ARM
  • Reverse mortgage

Question 5

Question
What does the acronym “APR” mean?
Answer
  • Appraised property ratio
  • Adjusted pricing ratio
  • Annual percentage rate
  • Annual percentage ratio

Question 6

Question
MIP would be used for which of the following?
Answer
  • A conventional loan with a down payment of less than 20%
  • A non-conforming loan
  • An FHA loan with a 3.5% down payment
  • VA loan with a 10% down payment

Question 7

Question
Which of the following loan programs does not require credit or income documentation and does not require repayment as long as the owner lives in the home?
Answer
  • NINA
  • Reverse mortgage
  • Option-ARM
  • HELOC

Question 8

Question
Increasing loan balances resulting from the application of periodic payments that are not sufficient to cover the interest that is due will result in:
Answer
  • Negative equity
  • Negative amortization
  • Lower credit scores
  • Amortizing payments

Question 9

Question
Concerning ARMs, margin is best defined as:
Answer
  • The amount of compensation earned by a mortgage professional for originating an ARM
  • The range of flexibility an interest rate has between caps on traditional ARMs
  • The maximum – up or down – that an interest rate can ever adjust on an ARM
  • A number, expressed as a percentage, that represents a lender’s operating costs and profit margin

Question 10

Question
Which of the following best describes the LTV ratio?
Answer
  • It is the ratio of the borrower’s total debt to monthly income
  • It is the ratio of the borrower’s principal loan balance to the appraised value of the property
  • It is the ratio of the borrower’s monthly loan payment to the principal loan balance
  • It is the ratio of the borrower’s monthly housing expense to monthly income

Question 11

Question
Which of the following best describes what is considered in the calculation of a borrower’s back-end ratio?
Answer
  • Principal and interest payments
  • The cost of credit in relation to the value of the loan
  • All consumer debt such as credit card payments and auto loan
  • The total amount of monthly payments on long-term debt carried by the consumer

Question 12

Question
Which of the following does a lender use to analyze a borrower’s financial capacity to determine if he/she is able to afford a loan?
Answer
  • LTV
  • CCPA
  • CIP
  • DTI

Question 13

Question
Comparable properties used in the market approach to appraisal should be located within ____________ of the subject property.
Answer
  • One mile
  • Five miles
  • The same zip code
  • The same county, city or township

Question 14

Question
According to conforming guidelines, an appraiser may make net adjustments to comparables of up to _____ in a residential appraisal.
Answer
  • 25%
  • 20%
  • 15%
  • 10%

Question 15

Question
Property flipping occurs when:
Answer
  • The title of a property is passed to a family member
  • Someone accepts a fee to falsely claim ownership of a property
  • Someone secures a loan with fictitious property
  • A property is bought and resold within a very short period of time

Question 16

Question
A borrower in a mortgage transaction is called:
Answer
  • A lendee.
  • A mortgagee
  • A mortgagor
  • A beneficiary

Question 17

Question
A clause in the note that requires the borrower to pay an additional charge if he prepays the loan is:
Answer
  • The prepayment penalty.
  • The due-on-sale clause.
  • The late payment penalty.
  • The prepayment privilege.

Question 18

Question
Which IRS form authorizes the lender to obtain income tax information?
Answer
  • 8821 or 4506-T
  • W-2
  • 1099
  • Schedule C

Question 19

Question
For a sole proprietorship, the income, expenses and taxable profits are reported on:
Answer
  • IRS form 1065
  • Schedule E attached to IRS form 1040
  • IRS form 1120
  • Schedule C attached to IRS form 1040

Question 20

Question
In the calculation of an applicant's income, a capital gain can be considered if:
Answer
  • It is a one-time occurrence
  • The borrower has occasionally sold capital assets
  • The borrower owns additional capital assets
  • It occurred no earlier than six months prior to the application
Show full summary Hide full summary

Want to create your own Quizzes for free with GoConqr? Learn more.

Similar

SPHSPHR BY FUNCTIONAL AREA
Elizabeth Rogers8284
AFO
Bernardo Celles
AFO
Genilson Silva
10 Mind Mapping Strategies for Teachers
Andrea Leyden
Organic Chemistry Functional Groups
linpubotwheeds
HRCI Glossary of Terms O-Z
Sandra Reed
Biology B1
Phoebe Drew
Structure of the League of Nations
saskiamitchell.19
Peace and Conflict Flashcards - Edexcel GCSE Religious Studies Unit 8
nicolalennon12
Using GoConqr to teach science
Sarah Egan
SFDC App Builder 1 (126-150)
Connie Woolard
Browse Library