Lrpu Combined Test On Daily Error Markdowns

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| By Santoshc
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Santoshc
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Quizzes Created: 3 | Total Attempts: 525
| Attempts: 129
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  • 1/28 Questions

    U/W’s needs to pull a credit report and check for Occupancy if investor rule states “Property Should be Owner Occupied” even though we have sufficient income documents matching property address in CIS? 

    • True
    • False
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About This Quiz

This quiz tests knowledge on mortgage underwriting protocols, focusing on error handling, document requirements, and income verification.

Lrpu Combined Test On Daily Error Markdowns - Quiz

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  • 2. 

    U/W’s can accept SSI award letter without borrower name and SSN?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    U/W's (underwriters) cannot accept an SSI (Supplemental Security Income) award letter without the borrower's name and SSN (Social Security Number). This information is crucial for verifying the borrower's identity and eligibility for the SSI award. Without this information, the underwriters cannot accurately assess the borrower's financial situation and make informed decisions regarding the loan. Therefore, the statement is false.

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  • 3. 

    SAM denials are mandatory on all the loans which are getting denied for HAMP and NONHAMP? 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement suggests that SAM denials are required for all loans that are denied for HAMP (Home Affordable Modification Program) and NONHAMP (non-Home Affordable Modification Program) purposes. This means that if a loan is denied for either of these programs, it is mandatory to have a SAM denial. Therefore, the correct answer is true.

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  • 4. 

    U/W’s can accept 4506T which is altered if brw only source of income is wage income?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    U/W's refers to underwriters, who are responsible for assessing the risk of a loan application. The question is asking whether underwriters can accept an altered version of form 4506T, which is a request for a transcript of a tax return. The altered form would not accurately represent the borrower's true income if their only source of income is wage income. Therefore, the answer is false, as underwriters cannot accept an altered form in this scenario.

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  • 5. 

    U/W’s can consider DPGDI comment for any sort of income clarification for brw/Co brw?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given statement suggests that U/W's (underwriters) can refer to DPGDI (Directorate of Postal Grievances and DOPG Integration) comments for any clarification regarding income for borrowing companies. This means that DPGDI comments can provide information or guidance on income-related matters for borrowing companies. Therefore, the correct answer is True.

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  • 6. 

    U/W’s should request for 2014 tax returns even it is an ongoing application?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The correct answer is False because U/W's (underwriters) should not request for 2014 tax returns if it is an ongoing application. This implies that the underwriters should not ask for tax returns from the year 2014, regardless of the status of the application.

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  • 7. 

    Signature is mandatory on P&L even if it is negative if P&L is received in the printed format?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because regardless of whether the profit and loss (P&L) statement is positive or negative, a signature is still required if it is received in printed format. The signature serves as a confirmation that the individual has reviewed and acknowledged the contents of the P&L statement. This practice ensures accountability and helps to prevent any potential disputes or misunderstandings regarding the financial performance of the company.

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  • 8. 

    We have received only Non brw authorization letter for Non brw however as per hamp form no where brw has mentioned about Non brw contribution what action needs to be taken in this scenario. 

    • Condition the loan for Non brw income proofs.

    • Ignore Non brw authorization

    • Condition the loan for clarification on Non brw income

    Correct Answer
    A. Ignore Non brw authorization
    Explanation
    The given scenario states that only a Non brw authorization letter has been received, but there is no mention of Non brw contribution in the HAMP form. In this scenario, the correct action to take would be to ignore the Non brw authorization. This means that the Non brw's income will not be considered for the loan condition and approval process. The focus will be on other relevant income proofs and documentation.

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  • 9. 

    U/W’s can accept “Month to Month” rental agreement even the rental agreements has expired?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The correct answer is true because, as stated in the question, U/W's (presumably referring to landlords or property owners) can accept a "Month to Month" rental agreement even if the previous rental agreement has expired. This suggests that U/W's have the flexibility to continue renting out their property on a monthly basis without the need to sign a new long-term lease agreement.

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  • 10. 

    Statement of intension is mandatory on every loan?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement of intention is not mandatory on every loan. While it is common for lenders to require borrowers to provide a statement of intention outlining how they plan to use the loan funds, it is not a legal requirement for all loans. Some lenders may not require this statement, especially for smaller loans or certain types of loans where the purpose is already specified, such as a mortgage or car loan. Therefore, the statement of intention is not mandatory for every loan, making the answer "False".

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  • 11. 

    U/W’s should consider rental income from Sch –E for calculation even the amount is not matching with rental agreement, receipts and financial form?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The correct answer is true because U/W's (presumably referring to underwriters) should consider rental income from Schedule E for calculation, even if the amount does not match with the rental agreement, receipts, and financial form. This suggests that underwriters should take into account the rental income reported on Schedule E, regardless of any discrepancies in the supporting documentation.

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  • 12. 

    U/W’s can accept P&L statement which is more than 12months?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The answer is false because underwriting guidelines typically require P&L (Profit and Loss) statements to be no more than 12 months old. This is because older statements may not accurately reflect the current financial situation of the borrower or the company. Lenders want to assess the borrower's current financial health and ability to repay the loan, which is why they prefer recent P&L statements.

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  • 13. 

    What is the prime condition U/W should select if Sec 15 (Acknowledgement page) has not signed by brw/Co brw?

    • Hardship missing some pages

    • Additional information required regarding RMA

    • Financial form missing some pages

    • Do not condition the loan

    Correct Answer
    A. Financial form missing some pages
    Explanation
    If the Sec 15 (Acknowledgement page) has not been signed by the borrower or co-borrower, it indicates that the financial form is missing some pages. This suggests that the prime condition U/W should select is "Financial form missing some pages."

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  • 14. 

    U/W’s can accept Sec 6 mentioned with only expenses information?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    U/W's cannot accept Section 6 mentioned with only expenses information because Section 6 refers to the income information. Accepting it with only expenses information would not provide a complete picture of the financial situation.

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  • 15. 

    U/W’s can place a deny comment under MODQRS even though internal values are missing on the denial H2DNY4E (Second Home)?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    U/W's can place a deny comment under MODQRS even though internal values are missing on the denial H2DNY4E (Second Home) because the absence of internal values does not prevent the U/W from providing a comment or explanation for the denial. The U/W can still indicate the reason for the denial or provide additional context, even if the internal values are not available.

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  • 16. 

    Borrower has checked on hardship resolved along with that brw has checked on hardship reasons what action needs to be taken in this scenario.

    • Deny the loan for H2DNY51/HDENY51

    • Process the loan normally

    • Approach Team Leader

    Correct Answer
    A. Process the loan normally
    Explanation
    The correct answer is to process the loan normally. This suggests that despite the borrower checking on hardship resolved and hardship reasons, there is no need for any additional action or intervention. The loan can proceed as per the regular process without any obstacles or delays.

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  • 17. 

    Brw/Co brw has mentioned income as Zero and mentioned hardship reason as unemployed what action needs to be taken in this scenario?

    • Condition for clarification on income

    • Process the loan normally

    • Approach Team Leader

    Correct Answer
    A. Process the loan normally
    Explanation
    In this scenario, the borrower has mentioned their income as zero and the reason for hardship as being unemployed. The correct action to take in this situation is to process the loan normally. This means that the loan application should be reviewed and assessed based on the borrower's other qualifications and financial information, excluding their income. The lender should consider factors such as credit history, assets, and any other relevant information to determine the borrower's eligibility for the loan.

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  • 18. 

    U/W’s can accept P&L signed by third party, if P&L is received in the printed format? 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    U/W's cannot accept a P&L signed by a third party, even if it is received in printed format. The question implies that the printed format would make a difference in accepting the P&L, but this is incorrect. U/W's typically require the P&L to be signed by the party responsible for preparing it, not a third party.

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  • 19. 

    Income calculation is mandatory on loan which is getting denied for HDENY51/H2DNY51?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given answer is true because income calculation is indeed mandatory when applying for a loan. Lenders need to assess the borrower's ability to repay the loan, and income is a crucial factor in determining this. By calculating the borrower's income, lenders can determine if it meets the minimum requirements for the loan and if it is sufficient to cover the monthly payments. Without income calculation, lenders would not have a clear picture of the borrower's financial situation and may be more likely to deny the loan.

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  • 20. 

    U/W’s can accept Sch-E even if tax return has not signed?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    U/W's refers to underwriters, who are responsible for evaluating and accepting insurance applications. In this context, "Sch-E" likely refers to Schedule E, which is a tax form used to report rental income. The question is asking whether underwriters can accept Schedule E even if the tax return has not been signed. The correct answer is "True" because underwriters can accept the form even without a signature, as long as the necessary information is provided and the underwriters have assessed the application and determined it to be acceptable.

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  • 21. 

    Borrower has provided SSI bank statements and award letter for SS income, however the same income is not mentioned under financial form. What action needs to be taken in this scenario? 

    • Ignore SS income

    • Consider SS income for calculation

    • Refer the loan for fraud

    • Condition for clarification

    Correct Answer
    A. Consider SS income for calculation
    Explanation
    In this scenario, the borrower has provided SSI bank statements and an award letter for SS income, indicating that they receive income from Social Security. Although the same income is not mentioned under the financial form, it is important to consider the SS income for calculation. This means that the SS income should be included in the borrower's overall income assessment for the loan.

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  • 22. 

    We need to update deny comment under MODQRS even though the internal values are missing on the denials HDENY51/H2DNY51?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The correct answer is True. This means that even though the internal values are missing on the denials HDENY51/H2DNY51, we still need to update the deny comment under MODQRS. This suggests that the absence of internal values does not exempt us from the requirement to update the deny comment.

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  • 23. 

    Received application on 05/15/2015 in which borrower has mentioned wage income and we have received proof accordingly, however received 2013 tax returns reflects positive business income what action needs to be taken in this scenario.

    • Condition the loan for clarification

    • Process the loan normally ignoring business income.

    • Cancel the workflow

    Correct Answer
    A. Process the loan normally ignoring business income.
    Explanation
    Based on the information provided, the borrower has mentioned wage income in the application and has provided proof for it. However, the 2013 tax returns reflect positive business income. In this scenario, the correct action would be to process the loan normally ignoring the business income. This means that the lender should consider only the wage income mentioned by the borrower for the loan application and not take into account the business income reflected in the tax returns.

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  • 24. 

    If any document is missing in CIS we should search the document by Document type in CIS?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Searching for a missing document by document type in CIS is not necessary or guaranteed to be effective. The document type may not accurately reflect the content or purpose of the missing document. It would be more efficient to search for the missing document using other relevant criteria such as keywords, dates, or specific document identifiers. Therefore, the statement is false.

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  • 25. 

    Signature is not mandatory on 8879?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement "Signature is not mandatory on 8879" is false. The 8879 form is an IRS e-file signature authorization form used by individuals to authorize their tax preparer to electronically file their tax return. It is mandatory for the taxpayer to sign this form in order to authorize the tax preparer to file their return electronically. Therefore, the correct answer is False.

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  • 26. 

    U/W’s are not supposed to trigger MODPC comment if loan is getting denied for H2DNY8H? 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because if the loan is getting denied for H2DNY8H, U/W's (underwriters) are supposed to trigger MODPC (Mortgage Origination Default and Performance Comment) comment.

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  • 27. 

    SSN on Sec 2 is not mandatory on Estate Loans?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because SSN (Social Security Number) is indeed mandatory on Estate Loans. The SSN is a unique identifier that is required for various purposes, including verifying the borrower's identity, conducting credit checks, and ensuring compliance with federal regulations. Therefore, it is necessary for the lender to collect the borrower's SSN when processing estate loans.

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  • 28. 

    While working on 2nd lien loan if days due is less than 30, U/W’s should consider 1st lien mortgage from related loan?

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because if the days due on a 2nd lien loan is less than 30, it does not necessarily mean that the underwriters should consider the 1st lien mortgage from a related loan. The decision to consider the 1st lien mortgage would depend on various factors such as the terms and conditions of the loans, the borrower's financial situation, and the lender's risk assessment.

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Quiz Review Timeline (Updated): Jul 25, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jul 25, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 15, 2015
    Quiz Created by
    Santoshc
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