Xinnix Final Exam Questions and Answers with Verified Solutions

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Xinnix Final Exam Questions and Answers with Verified Solutions 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 HomeOne will allow up to 97% LTV for a primary residence, 1-Unit purchase if at least one of the borrowers has not owned a home in the last 3 years. A borrower who has not owned a home in the last three years is considered a first-time home buyer under HomeOne ✔✔True Relief Refinance Program loans are designed to help homeowners who are current on their mortgage payments but are unable to refinance due to a drop in their home value. ✔✔True When adjusting a 1-Year ARM with 2/6 caps, the rate at the beginning of year 2 will be determined by the Start Rate + Annual Cap or the Fully-indexed rate, whichever is less. ✔✔True A veteran and a spouse may qualify together for 100% financing on a VA ✔✔True A Loan Officer can locate the summary of the eligibility requirements for a loan to be sold to a specific lender/investor in the lender specs. ✔✔False A 2/1 buydown typically costs 2.5 discount points. Give or take .25%. ✔✔True The P&I on an FHA loan is calculated using the TOTAL Loan Amount. ✔✔True When considering a FHLMC loan, the maximum allowable ratios for the owner occupant when using a non-occupant co-borrower are 35/43. ✔✔True HOA dues should be added to the PITI for the purpose of calculating ratios when qualifying a borrower. ✔✔True An FHA 203(k) Standard program would require a HUD Consultant. ✔✔True YTD paystubs will be required from a borrower that is self-employed (Schedule C). ✔✔False Unreimbursed business expenses can be located on Form 2106 of a borrower's personal tax return. ✔✔True A 3-Year ARM adjusts every 3 years. ✔✔True Loan Product Advisor (LPA) is one of the most widely used automated underwriting systems in the mortgage industry. ✔✔True The age of the youngest borrower is considered when determining the principal limit (maximum loan amount) for a reverse mortgage. ✔✔True Residual income is the amount of income available for family support after taxes and social security expense have been subtracted from the gross income and after PITI and other long-term debt has been paid. ✔✔True There is no minimum credit score needed to run/submit both HomeOne and Home Possible® through an automated underwriting ✔✔True Using the following information, answer the following conventional financed MI loan question. Sales Price = $185,000 Down Payment = 10% Credit Score = 635 20-year Fixed Rate Owner-occupied What is the Total Loan Amount and MI Factor? ✔✔$169,247/1.65% [Show More]

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