Xinnix Final Exam Questions With Answers
A veteran has the ability to transfer a portion of their entitlement to another veteran.
False
1. 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
Based on the following scenario, does the borrower qualify within FNMA guidelines?
PITI: $1,725 monthly
Income: $7,000
Debt: $700 car payment, $375 student loan ($2,250 balance), $170 credit card payments ($1,530
balance
No
YTD paystubs will be required from a borrower that is self-employed (Schedule C).
False
The maximum LTV for an FHA purchase is 97%.
False
If your borrower is being relocated and needs to close in 30-days, and their spouse will not be moving
for 3 months, the spouse's income can still be used to qualify.
False
Based on the following scenario, does the borrower qualify within the FHLMC guidelines?
PITI: $1,375 monthly
Income: $4,950 monthly
Debt: $350 car payment, $420 student loan ($4,500 balance), $75 credit card payments ($850
balance).
No
One month of the borrower's current house payment must be included when calculating the new loan
amount for a cash-out refinance
True
The qualifying rate for a 7/1 ARM is 2% above the start rate.
False
Churning schemes usually involve falsified down payment amounts and falsified appraisals.
False
A borrower can use a credit card to pay for their required down payment
False
, A borrower's income is a factor considered when determining the principal limit (maximum loan
amount) for a reverse mortgage.
False
A 30-year conventional loan with an 87% LTV would require 25% mortgage insurance coverage.
True
A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD paystub.
True
Loans with an LTV >80% will typically require mortgage insurance. (FNMA/FHLMC)
True
A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments are
amortized over the term of the loan. Once the balance is paid off the mortgage is closed.
True
A borrower must qualify at the note rate on a temporary buydown, not the start rate.
True
A lender must notify an applicant of action taken within 30 days after receiving a completed
application concerning the lender's approval of, counteroffer to, or adverse action on the application.
True
FNMA and FHLMC are fully backed by the U.S. Government
True
The Correspondent Lender is the "end" lender in a mortgage banker's transaction
True
A stand alone second mortgage is obtained separately from a first mortgage.
True
Except for high-cost areas, the maximum loan amount on a 1-unit, single family residence is $510,400.
True
When using automated underwriting for a FNMA loan, DU will determine the borrower's reserve
requirement for an investment property.
True
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
A veteran has the ability to transfer a portion of their entitlement to another veteran.
False
1. 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
Based on the following scenario, does the borrower qualify within FNMA guidelines?
PITI: $1,725 monthly
Income: $7,000
Debt: $700 car payment, $375 student loan ($2,250 balance), $170 credit card payments ($1,530
balance
No
YTD paystubs will be required from a borrower that is self-employed (Schedule C).
False
The maximum LTV for an FHA purchase is 97%.
False
If your borrower is being relocated and needs to close in 30-days, and their spouse will not be moving
for 3 months, the spouse's income can still be used to qualify.
False
Based on the following scenario, does the borrower qualify within the FHLMC guidelines?
PITI: $1,375 monthly
Income: $4,950 monthly
Debt: $350 car payment, $420 student loan ($4,500 balance), $75 credit card payments ($850
balance).
No
One month of the borrower's current house payment must be included when calculating the new loan
amount for a cash-out refinance
True
The qualifying rate for a 7/1 ARM is 2% above the start rate.
False
Churning schemes usually involve falsified down payment amounts and falsified appraisals.
False
A borrower can use a credit card to pay for their required down payment
False
, A borrower's income is a factor considered when determining the principal limit (maximum loan
amount) for a reverse mortgage.
False
A 30-year conventional loan with an 87% LTV would require 25% mortgage insurance coverage.
True
A borrower that is self-employed (Schedule C) will typically not be required to provide a YTD paystub.
True
Loans with an LTV >80% will typically require mortgage insurance. (FNMA/FHLMC)
True
A fixed-rate second mortgage has the loan amount fully disbursed at closing. Monthly payments are
amortized over the term of the loan. Once the balance is paid off the mortgage is closed.
True
A borrower must qualify at the note rate on a temporary buydown, not the start rate.
True
A lender must notify an applicant of action taken within 30 days after receiving a completed
application concerning the lender's approval of, counteroffer to, or adverse action on the application.
True
FNMA and FHLMC are fully backed by the U.S. Government
True
The Correspondent Lender is the "end" lender in a mortgage banker's transaction
True
A stand alone second mortgage is obtained separately from a first mortgage.
True
Except for high-cost areas, the maximum loan amount on a 1-unit, single family residence is $510,400.
True
When using automated underwriting for a FNMA loan, DU will determine the borrower's reserve
requirement for an investment property.
True
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
