Net Operating Income In Real Estate! Trivia Questions Quiz

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| By Sheilamstrong

Sheilamstrong

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Quizzes Created: 4 | Total Attempts: 4,646

Questions: 5 | Attempts: 463 | Updated: Mar 22, 2023

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Net Operating Income In Real Estate! Trivia Questions Quiz - Quiz

This trivia questions quiz is on Net Operating Income in Real Estate! This type of income is used to measure the profitability expected from a real estate investment. Do you know how to calculate the correct NOI and what you need to do so? How about you take the quiz and get a chance to refresh your understanding of the calculation.

Questions and Answers

1.

A Reg B (ECOA) application is simply a borrower inquiry for credit. The Notice of Incompleteness (NOI) requirements apply even if you do not have the 6 elements of a RESPA application.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The explanation for the given correct answer is that a Reg B (ECOA) application, which refers to an application under the Equal Credit Opportunity Act, is a borrower's inquiry for credit. The Notice of Incompleteness (NOI) requirements apply to such applications, even if they do not have all six elements of a RESPA (Real Estate Settlement Procedures Act) application. This means that even if the borrower's inquiry does not meet all the requirements for a complete application, the lender is still obligated to comply with the NOI requirements under Reg B.

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2.

Which of the following statements are correct?
- A.
  
  If the borrower has not been approved, denied, or withdrawn within 30 days of their ECOA application, an NOI must be issued.
- B.
  
  A NOI must be issued WITHIN 30 days, which means you can send one the day you initially speak with the borrower or anytime within the following 30 days.
- C.
  
  You must send a NOI before the loan can be denied or withdrawn.
- D.
  
  The 30 day NOI is designed for borrowers who have information or documents that need to be submitted to the LO. The 90 day NOI is designed for borrowers who do not have a property and need additional time to shop.
Correct Answer(s)
A. If the borrower has not been approved, denied, or withdrawn within 30 days of their ECOA application, an NOI must be issued.
B. A NOI must be issued WITHIN 30 days, which means you can send one the day you initially speak with the borrower or anytime within the following 30 days.
D. The 30 day NOI is designed for borrowers who have information or documents that need to be submitted to the LO. The 90 day NOI is designed for borrowers who do not have a property and need additional time to shop.

Explanation
This answer correctly identifies that a Notice of Incompleteness (NOI) must be issued within 30 days of the borrower's ECOA application if they have not been approved, denied, or withdrawn. It also states that the NOI can be sent on the day of the initial conversation with the borrower or anytime within the following 30 days. Furthermore, it explains that the 30-day NOI is for borrowers who need to submit additional information or documents, while the 90-day NOI is for borrowers who do not have a property and need more time to shop.

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3.

We can not give the borrower more or less time than the typical 30 or 90 days NOI as this could give rise to a fair housing complaint. However, if we have already sent the typical 30 or 90 day NOI and the borrower requests more time, we can send an additional NOI to provide the time requested.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is true because giving the borrower more or less time than the typical 30 or 90 days Notice of Intent (NOI) could be considered discriminatory and lead to a fair housing complaint. However, if the borrower requests more time after receiving the initial NOI, it is permissible to send an additional NOI to accommodate their request.

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4.

If a borrower is pre-qualified, we do not have to issue an NOI.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Only files approved by an underwriter are considered approved. NOIs are designed to get outstanding information that will allow an underwriter to either approve or deny the loan.

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5.

Who is responsible for issuing a timely NOI?
- A.
  
  The Adverse Action Department.
- B.
  
  The Loan Originator.
- C.
  
  The Processor.
- D.
  
  The Underwriter.
Correct Answer
B. The Loan Originator.

Explanation
LOs are responsible for their own pipeline management, including issuing NOIs in a timely manner.

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
May 06, 2013

Quiz Created by
Sheilamstrong

Net Operating Income In Real Estate! Trivia Questions Quiz

A Reg B (ECOA) application is simply a borrower inquiry for credit. The Notice of Incompleteness (NOI) requirements apply even if you do not have the 6 elements of a RESPA application.

Which of the following statements are correct?

We can not give the borrower more or less time than the typical 30 or 90 days NOI as this could give rise to a fair housing complaint. However, if we have already sent the typical 30 or 90 day NOI and the borrower requests more time, we can send an additional NOI to provide the time requested.

If a borrower is pre-qualified, we do not have to issue an NOI.

Who is responsible for issuing a timely NOI?