XINNIX FLIGHT SCHOOL EXAM WITH CORRECT
ANSWERS
The rate lock period for a refi, with a right of rescission, must be long enough to cover the rescission
period.
True
How long does a borrower have to wait to buy a home after they have had a foreclosure? FHA
3 years
What are the steps you should follow to determine the correct MI?
LTV, term, product type, occupancy type and coverage.
Typically, files that have to be manually underwritten are subject to less strict guidelines.
False
You can always use an appraisal that was transferred from another lender, regardless of whether the
loan is conventional, FHA, or VA.
False
Whould you need tax returns from a borrower who is paid in the following manner? Total yearly
income (base + commissions)=$50,000;commission varies each year.
yes
What are the two documents all retired veterans should bring to application?
COE and DD214?
At what rate does your borrower qualify on an FHA 30 year fixed, 2/1 buy-down with a note rate of
7.5% and a start rate of 5.5%?
7.5%
If income is non-taxable, we would consider allowing for higher ratios since most ratios are calculated
with the assumption of income being taxable. Assume manually underwritten loan
True
Which of the following is an accurate distinction between a single-family detached unit and a
townhouse?
One shares common walls with other units, the other does not.
The borrower must have 5% of their own funds when putting 20% down on a conventional loan for a
primary residence.
false
The application fee on VA loans must be listed as an application fee on the LE.
False
, If the roof of a townhouse (fee simple) needs new shingles, who is responsible?
homeowner?
The CPI is a monthly index published by the US gov't that measures consumer attitudes and
expectations concerning both present and future economic conditions
False
What is the max seller contribution on VA loan
4% which includes cc, pp and points ?
You must check "form 2106" for un-reimbursed employee expenses when you have a borrower who
earns commissions.
False
Choose the relationship between the name of the report and mortgage interest rate tendencies
When CPI goes up, rates tend to go up; when the GDP goes down, rates tend to go down; when the
unemployment rate goes up, rates tend to go down.
Verification of employment, income, source of funds and payment history must not be older than ----
days prior to the note rate.
120
Subordinate financing is permitted with a seller second up to 100% CLTV
False
How many days must a borrower wait to close once they receive their initial disclosures
7 days
Gross rent may be considered effective income when an applicant is planning to rent their current
residence after closing on the purchase of their new home.
False
What income would allow for higher ratios, assuming a manually underwritten loan
Taxable income?
The purpose of this act, implemented by Reg Z, is to provide consumers with a greater understanding
of the actual cost of credit.
TILA
You are required to disclose why a loan was declined, if applicable to the lender you are transferring a
loan package to for all FHA and VA loans
true
What are types of renovation mortgages
ANSWERS
The rate lock period for a refi, with a right of rescission, must be long enough to cover the rescission
period.
True
How long does a borrower have to wait to buy a home after they have had a foreclosure? FHA
3 years
What are the steps you should follow to determine the correct MI?
LTV, term, product type, occupancy type and coverage.
Typically, files that have to be manually underwritten are subject to less strict guidelines.
False
You can always use an appraisal that was transferred from another lender, regardless of whether the
loan is conventional, FHA, or VA.
False
Whould you need tax returns from a borrower who is paid in the following manner? Total yearly
income (base + commissions)=$50,000;commission varies each year.
yes
What are the two documents all retired veterans should bring to application?
COE and DD214?
At what rate does your borrower qualify on an FHA 30 year fixed, 2/1 buy-down with a note rate of
7.5% and a start rate of 5.5%?
7.5%
If income is non-taxable, we would consider allowing for higher ratios since most ratios are calculated
with the assumption of income being taxable. Assume manually underwritten loan
True
Which of the following is an accurate distinction between a single-family detached unit and a
townhouse?
One shares common walls with other units, the other does not.
The borrower must have 5% of their own funds when putting 20% down on a conventional loan for a
primary residence.
false
The application fee on VA loans must be listed as an application fee on the LE.
False
, If the roof of a townhouse (fee simple) needs new shingles, who is responsible?
homeowner?
The CPI is a monthly index published by the US gov't that measures consumer attitudes and
expectations concerning both present and future economic conditions
False
What is the max seller contribution on VA loan
4% which includes cc, pp and points ?
You must check "form 2106" for un-reimbursed employee expenses when you have a borrower who
earns commissions.
False
Choose the relationship between the name of the report and mortgage interest rate tendencies
When CPI goes up, rates tend to go up; when the GDP goes down, rates tend to go down; when the
unemployment rate goes up, rates tend to go down.
Verification of employment, income, source of funds and payment history must not be older than ----
days prior to the note rate.
120
Subordinate financing is permitted with a seller second up to 100% CLTV
False
How many days must a borrower wait to close once they receive their initial disclosures
7 days
Gross rent may be considered effective income when an applicant is planning to rent their current
residence after closing on the purchase of their new home.
False
What income would allow for higher ratios, assuming a manually underwritten loan
Taxable income?
The purpose of this act, implemented by Reg Z, is to provide consumers with a greater understanding
of the actual cost of credit.
TILA
You are required to disclose why a loan was declined, if applicable to the lender you are transferring a
loan package to for all FHA and VA loans
true
What are types of renovation mortgages
