Newrez Correspondent - Knowledge Test. Nov 2019
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For Manufactured home property, Structure type will be updated in
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Corr Tracking Tab
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Legal Tab
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Property Address Tab
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Appraisal Tab
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About This Quiz
This test assesses knowledge of FHA and USDA loan processing guidelines, focusing on fees, appraisal requirements, and loan auditing protocols.
Quiz Preview
- 2.
Final APR will be available in ____________
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Note
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Loan Estimate Final
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Closing Disclosure Final
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Application Final
Correct Answer
A. Closing Disclosure FinalExplanation
The Closing Disclosure is the final document that provides the borrower with all the details and costs associated with their loan. It includes the loan terms, interest rate, closing costs, and any other fees or charges. Therefore, the Final APR, which is the Annual Percentage Rate, will be available in the Closing Disclosure Final. This document is typically provided to the borrower a few days before the loan closing, allowing them to review and understand the final terms of their loan.Rate this question:
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- 3.
Neighborhood Name will be available in
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Note
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Underwriting Findings
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Appraisal
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Closing Disclosure
Correct Answer
A. AppraisalExplanation
The neighborhood name will be available in the appraisal. The appraisal is a document that determines the value of a property based on various factors, including the condition and location of the property. As part of the appraisal process, the appraiser will typically provide information about the neighborhood in which the property is located, including its name. This information is important for potential buyers or lenders to assess the value and desirability of the property in relation to its surroundings.Rate this question:
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- 4.
What is the Financed Fee Percentage for FHA
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1.75%
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1.50%
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1.70%
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1.65%
Correct Answer
A. 1.75%Explanation
The Financed Fee Percentage for FHA is 1.75%. This means that when obtaining an FHA loan, borrowers will be required to pay a fee equal to 1.75% of the loan amount. This fee is typically added to the loan balance and financed over the term of the loan.Rate this question:
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- 5.
What should be the financed fee percentage for USDA loans
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.5%
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.1%
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1%
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2%
Correct Answer
A. 1%Explanation
The financed fee percentage for USDA loans should be 1%. This fee is charged by the USDA to guarantee the loan and cover administrative costs. It is typically added to the loan amount and paid off over the life of the loan. A 1% fee is common for USDA loans and helps to ensure that the program remains financially sustainable.Rate this question:
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- 6.
Occupancy certificate will be indexed under Email Authorization
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True
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False
Correct Answer
A. FalseExplanation
The statement is false because an occupancy certificate is not indexed under email authorization. An occupancy certificate is a document issued by the local government or building authority to certify that a building or premises has been constructed and completed according to the approved plans and regulations. It is unrelated to email authorization, which pertains to granting permission or access to use email services.Rate this question:
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- 7.
CU Score will be there on FHA loans
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Yes
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No
Correct Answer
A. NoExplanation
The given statement is "CU Score will be there on FHA loans" and the correct answer is "No". This means that CU Score will not be present on FHA loans.Rate this question:
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- 8.
"Recession date" will be available on Primary Purchase loans
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True
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False
Correct Answer
A. FalseExplanation
The given statement is false. The term "recession date" refers to the date when an economic recession begins. It is not specifically related to primary purchase loans. Therefore, the statement suggesting that the recession date will be available on primary purchase loans is incorrect.Rate this question:
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- 9.
If loan Status says initial, We will proceed with Auditing
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True
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False
Correct Answer
A. FalseExplanation
If the loan status says "initial," it does not necessarily mean that we will proceed with auditing. The statement does not provide any information about the specific conditions or criteria for proceeding with auditing. Therefore, the correct answer is false as it cannot be determined solely based on the loan status being "initial."Rate this question:
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- 10.
Private Mortgage insurance is required for ?
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Conventional Purchase loans only
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All Loans with more than 80% LTV
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Conventional Loan with more than 80% LTV
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Option 4
Correct Answer
A. Conventional Loan with more than 80% LTVExplanation
Private Mortgage Insurance (PMI) is required for conventional loans with more than 80% Loan-to-Value (LTV). This means that if the borrower is putting down less than 20% of the purchase price as a down payment, they will be required to pay for PMI. This insurance protects the lender in case the borrower defaults on the loan. It is not required for all loans with more than 80% LTV, as there are other types of loans (such as FHA loans) that have their own mortgage insurance requirements.Rate this question:
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- 11.
USDA File will not have appraisal
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True
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False
Correct Answer
A. FalseExplanation
The statement "USDA File will not have appraisal" is false. The USDA (United States Department of Agriculture) does require an appraisal for certain types of loans, such as USDA Rural Development loans. The appraisal is necessary to determine the value of the property being financed and to ensure that it meets the USDA's requirements for eligibility. Therefore, the USDA file will indeed have an appraisal.Rate this question:
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- 12.
In Housing Section, USDA Annual Fee Monthly Premium will be updated as
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City Taxes
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Others
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Mortgage Insurance
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Monthly Insurance
Correct Answer
A. Mortgage InsuranceExplanation
The correct answer is "Mortgage Insurance". This is because the USDA Annual Fee Monthly Premium is a type of insurance that is required for USDA loans. It is designed to protect the lender in case the borrower defaults on the loan. The premium is typically added to the borrower's monthly mortgage payment. Therefore, "Mortgage Insurance" is the appropriate term to describe this fee.Rate this question:
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- 13.
For Manufactured home property, Structure type will be updated in
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Corr Tracking Tab
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Legal Tab
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Property Address Tab
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Appraisal Tab
Correct Answer
A. Property Address TabExplanation
The structure type for a manufactured home property will be updated in the Property Address Tab. This tab typically includes all the relevant information about the property, such as the address, legal description, and any additional details related to the property's structure. Therefore, it makes sense that the structure type would be updated in this tab as well.Rate this question:
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- 14.
If AUS is missing, can we process the loan?
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True
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False
Correct Answer
A. FalseExplanation
If AUS (Automated Underwriting System) is missing, it would not be possible to process the loan. The AUS is a computerized system used by lenders to assess the creditworthiness of loan applicants. It analyzes various factors such as credit history, income, and debt-to-income ratio to determine the likelihood of the borrower repaying the loan. Without the AUS, the lender would not have an automated way to evaluate the loan application, making it difficult to process the loan. Therefore, the statement "If AUS is missing, can we process the loan?" is false.Rate this question:
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- 15.
If 1003 final shows purpose of refinance as Cash Out Limited, what option need to be selected in destiny
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Streamline
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Cash Out
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Rate & Term
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Purchase
Correct Answer
A. Rate & TermExplanation
The correct answer is Rate & Term. If the purpose of the refinance is stated as Cash Out Limited, it means that the borrower wants to refinance their mortgage while also taking out a limited amount of cash. In this case, the most appropriate option to select in destiny would be Rate & Term. This option allows the borrower to change the interest rate or the term of their mortgage without taking out additional cash.Rate this question:
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- 16.
If Lender case number is missing in Final 1003, we will not update anything in destiny
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True
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False
Correct Answer
A. FalseExplanation
If the lender case number is missing in the Final 1003 form, it means that the necessary information for updating the destiny is not available. Therefore, the correct answer is False, indicating that we will not update anything in destiny if the lender case number is missing.Rate this question:
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- 17.
Broker/Correspondent name in "contacts" tab will be changed as per Note
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True
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False
Correct Answer
A. FalseExplanation
The statement implies that the broker/correspondent name in the "contacts" tab will not be changed according to the note. Therefore, the correct answer is False.Rate this question:
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- 18.
Which are the assets need to be excluded from destiny
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Automobile
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Cash Deposit
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Checking /Saving
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Gift Fund
Correct Answer(s)
A. Automobile
A. Cash DepositExplanation
The assets that need to be excluded from destiny are the automobile and cash deposit. This implies that these two assets should not be considered or included when determining or planning for one's destiny or future. The other assets listed, such as checking/saving and gift fund, may still be relevant or important in shaping one's destiny.Rate this question:
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Current Version
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Jan 30, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 19, 2019Quiz Created by
Dheeraj.u