Activity 1.1 The Mortgage Process
Activity 1. 1 The Mortgage Process
- 1.A principal residence where a borrower lives at least 75% of the time is considered:
- A.
Non-owner occupied
- B.
Second home
- C.
Condominium
- D.
Owner-occupied
- 2._______________ is characterized by ownership extending only to the interior dwelling and the shared ownership of common external areas by residents.
- A.
Condominium
- B.
Multi-unit residence
- C.
Single-family residence
- D.
Townhouse
- 3.Conforming mortgage limit for a single-family residence in Maryland is:
- A.
417,000
- B.
450,00
- C.
208,500
- D.
472,000
- 4.The following entities buy securitized loans on the secondary market EXCEPT:
- A.
Fannie Mae
- B.
Freddie Mac
- C.
Sallie Mae
- D.
Ginnie Mae
- 5.Identify the entity that insures a laon in lieu of Private Mortgage Insurance.
- A.
Fannie Mae
- B.
Freddie Mac
- C.
Secondary Market
- D.
Federal Housing Administration
- 6.The process of evaluating a loan for approval in accordance with predetermined lender guidelines is referred to as:
- A.
Securitization
- B.
Underwriting
- C.
Servicing
- D.
Processing
- 7.Commercial banks, savings and loans, mortgage bankers and morgage brokers are examples of:
- A.
Secondary mortgage market entities
- B.
Primary mortgage market lenders
- C.
Government-sponsored entities
- D.
Commercial lenders
- 8.The three entities that dominate the secondary market are:
- A.
FHA, Fannie Mae and Ginnie Mae
- B.
Freddie Mac, Fannie Mae and HUD
- C.
Commercial Banks, S&L and Freddie Mac
- D.
Fannie Mae, Freddie Mac and Ginnie Mae
- 9.A first mortgage by a lender, no insured by the federal government, is a(n):
- A.
RHS mortgage
- B.
Conventional mortgage
- C.
FHA Mortgage
- D.
VA Mortgage
- 10.The process of working with multiple lenders to find the best loan for a borrower is:
- A.
Processing
- B.
Underwriting
- C.
Brokering
- D.
Servicing
- 11.The primary role of this person is to verify the information in a loan application and prepare the file for underwriting.
- A.
Originator
- B.
Processor
- C.
Underwriter
- D.
Broker
- 12.The document that outlines outstanding approval conditions is known as:
- A.
Condition approval
- B.
Final approval
- C.
Mortgage note
- D.
Lock-in agreement
- 13.After a loan closes, an entity will collect a borrower's monthly payments and report the payment history to the credit bureaus. This process is:
- A.
Originating
- B.
Processing
- C.
Underwriting
- D.
Servicing
- 14.Generally,any property that generates income can be referred to as one of the following EXCEPT:
- A.
Owner occupied
- B.
Non-owner occupied
- C.
Rental property
- D.
Investment property
- 15.Unimproved real property is:
- A.
Manufactured home
- B.
Land
- C.
Mobile home
- D.
Single-family residence
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