CRU MBA Test #1 Comprehensive
Study Guide + Exam Questions &
Solutions Graded A+
Professional Academic Assistance Services
Services Offered
• Proctored Exam Assistance
• Online Class Management (Full Course Support)
• Exam Preparation & Study Materials
• Assignments and Coursework Support
• Essay and Research Paper Writing
• Discussion Posts & Responses
• Editing and Proofreading
• Confidential Academic Consultation
Contact Information
Email:
WhatsApp link: https://wa.me/254704846336
Fast Response | Confidential | Reliable Academic
Support
Helping Students Achieve Academic Excellence
,Functions of Mortgage Banking - Answer: 1. Loan Production
2. Funding, Warehousing, Shipping,
3. Secondary Marketing
4. Loan Administration
Loan Production - Answer: **Origination and manufacturing of
loans
Origination - loan app is taken and originated
Processing - manufacturing starts. All information on the loan
app is verified and necessary documentation is collected
Underwriting - determine whether lending risk is acceptable
Closing - preparation and delivery of all legal documents to
consummate the loan with the borrower
Funding, Warehousing, Shipping - Answer: Funding - mortgage
banker's act of providing money for the loan
,Warehousing - ensuring there is enough funds through
warehousing to close the loan
Shipping/QC - quality control
Shipping/Delivery - sending the full loan file to the investor that
is purchasing the loan
Secondary Marketing - Answer: -Finding and maintaining a
product mix to fit the mortgage banker's business model
-Setting interest rates that a mortgage banker will offer
-Negotiating loan purchase commitments with investors
-Managing market risks
Loan Administration - Answer: -Receiving payments from
borrowers
-Remitting funds received for P and I to the investors
-Managing the escrow account
-Handling of administrative functions relative to loan payoffs,
assumptions, loss mitigations, foreclosures
-Responding to customer inquiries
, Mortgage Banker - Answer: Refers to companies that fund the
loans at closing and service the loans after closing. Bankers may
either sell the loans on the secondary market or keep them in
portfolio (less common)
Correspondent - Answer: specialized type of mortgage banker
whose function is limited to the production of mortgage loans
that are then sold to other mortgage bankers under a specific
commitment.
Wholesaler - Answer: lender who specializes in the purchase
and servicing of mortgages obtained from other mortgage
origination entities, such as brokers, correspondents, thrifts,
credit unions, or commercial banks. They generally sell the
loans on the secondary market
Conduit - Answer: companies that purchase closed loans and
pool the closed loans for sale to investors as securities
Underwriter Responsibilities - Answer: 1. Analyze loan file for a
thorough understanding of the parties and transaction
Study Guide + Exam Questions &
Solutions Graded A+
Professional Academic Assistance Services
Services Offered
• Proctored Exam Assistance
• Online Class Management (Full Course Support)
• Exam Preparation & Study Materials
• Assignments and Coursework Support
• Essay and Research Paper Writing
• Discussion Posts & Responses
• Editing and Proofreading
• Confidential Academic Consultation
Contact Information
Email:
WhatsApp link: https://wa.me/254704846336
Fast Response | Confidential | Reliable Academic
Support
Helping Students Achieve Academic Excellence
,Functions of Mortgage Banking - Answer: 1. Loan Production
2. Funding, Warehousing, Shipping,
3. Secondary Marketing
4. Loan Administration
Loan Production - Answer: **Origination and manufacturing of
loans
Origination - loan app is taken and originated
Processing - manufacturing starts. All information on the loan
app is verified and necessary documentation is collected
Underwriting - determine whether lending risk is acceptable
Closing - preparation and delivery of all legal documents to
consummate the loan with the borrower
Funding, Warehousing, Shipping - Answer: Funding - mortgage
banker's act of providing money for the loan
,Warehousing - ensuring there is enough funds through
warehousing to close the loan
Shipping/QC - quality control
Shipping/Delivery - sending the full loan file to the investor that
is purchasing the loan
Secondary Marketing - Answer: -Finding and maintaining a
product mix to fit the mortgage banker's business model
-Setting interest rates that a mortgage banker will offer
-Negotiating loan purchase commitments with investors
-Managing market risks
Loan Administration - Answer: -Receiving payments from
borrowers
-Remitting funds received for P and I to the investors
-Managing the escrow account
-Handling of administrative functions relative to loan payoffs,
assumptions, loss mitigations, foreclosures
-Responding to customer inquiries
, Mortgage Banker - Answer: Refers to companies that fund the
loans at closing and service the loans after closing. Bankers may
either sell the loans on the secondary market or keep them in
portfolio (less common)
Correspondent - Answer: specialized type of mortgage banker
whose function is limited to the production of mortgage loans
that are then sold to other mortgage bankers under a specific
commitment.
Wholesaler - Answer: lender who specializes in the purchase
and servicing of mortgages obtained from other mortgage
origination entities, such as brokers, correspondents, thrifts,
credit unions, or commercial banks. They generally sell the
loans on the secondary market
Conduit - Answer: companies that purchase closed loans and
pool the closed loans for sale to investors as securities
Underwriter Responsibilities - Answer: 1. Analyze loan file for a
thorough understanding of the parties and transaction
