Activity 1.1 The Mortgage Process

15 Questions | Total Attempts: 183

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Activity 1. 1 The Mortgage Process


Questions and Answers
  • 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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