1003: Uniform Residential Loan Application (Urla)

On the 1003 form, which is the standard loan application form in the United States, it is important to verify the residence history for a period of 2 years. This is because lenders want to assess the stability and reliability of the borrower's housing situation. By verifying the residence history for 2 years, lenders can gain a better understanding of the borrower's ability to maintain a consistent living arrangement and make timely mortgage payments.

In the employment section, it is required to show and verify a minimum of 2 years of employment history. This means that individuals must provide documentation or proof of their work experience for the past 2 years when applying for a job or any other employment-related process. This requirement helps employers assess an applicant's work experience and stability in the workforce.

The statement is true because including the position, title, and business phone number on every employment application is important for employers to easily identify the applicant's desired role and contact them for further communication. This information helps in streamlining the hiring process and ensures that the employer can easily reach out to the applicant for any updates or interviews.

The minimum down payment on an FHA loan is 3.5%. This means that borrowers are required to pay at least 3.5% of the home's purchase price as a down payment when obtaining an FHA loan. This is a relatively low down payment requirement compared to other loan options, making FHA loans more accessible to borrowers with limited funds for a down payment.

If the borrower is putting at least 20% down on a Conventional loan, no mortgage insurance will be needed. Mortgage insurance is typically required when the borrower puts down less than 20% because it protects the lender in case the borrower defaults on the loan. However, if the borrower can make a larger down payment of 20% or more, the lender feels more secure and does not require mortgage insurance.

The correct answer is "All of the above". This means that the amortization type of a loan can be a fixed rate, a graduated payment mortgage, or an adjustable rate mortgage (ARM). The amortization type determines how the loan payments are structured and how the principal and interest are paid off over time. A fixed rate loan has a consistent interest rate and equal payments throughout the loan term. A graduated payment mortgage starts with lower initial payments that gradually increase over time. An ARM has an interest rate that can adjust periodically based on market conditions.

In this scenario, the loan officer is required to guess the race/sex/ethnicity of the applicant if they choose not to provide that information. This is done for government monitoring purposes, which suggests that collecting this data is necessary for tracking and ensuring fair lending practices.

Statutory investment is also known as the down payment. A down payment refers to the initial payment made when purchasing a large item, such as a house or car. It is typically a percentage of the total cost and is required by law or contract. This payment is made upfront to secure the purchase and is separate from any future installment payments.