1003: Uniform Residential Loan Application (Urla)
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In what section on the 1003 would you find if the borrowers plan to occupy the property as their primary residence
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About This Quiz
This quiz focuses on the Uniform Residential Loan Application (URLA), assessing knowledge on residence history verification, occupancy intentions, application dates, and loan conditions such as down payments and mortgage insurance requirements. It's crucial for professionals in loan processing and mortgage lending.
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In what screen in PCL do you find the application received date to match to the Loan officers sign date?
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What is the maximum financeable amount of units allowed on an investment property
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What does URLA stand for?
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What are 6 things that are listed under the borrower information section of the application that must be completed on every file?
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What are three different types of properties?
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What does DTI stand for?
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List 3 sources in which down payment can come from
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Manner in which title will be held defines what?
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Define what PITI stands for.
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How long of a residence history should you verify on the 1003?
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1 year
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6 months
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2 years
Correct Answer
A. 2 yearsExplanation
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.Rate this question:
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- 12.
What is the minimum down payment on an FHA loan?
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3.5%
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0%
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5%
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20%
Correct Answer
A. 3.5%Explanation
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.Rate this question:
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- 13.
Statutory investment is also known as the ____ _________.
Correct Answer
Down PaymentExplanation
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.Rate this question:
- 14.
For employment information, the position, title, and business phone number must be present on every application.
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True
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False
Correct Answer
A. TrueExplanation
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.Rate this question:
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- 15.
When a loan officer does an application face to face with the applicant, they must guess as to the race/sex/ethnicity of the applicant to fill in the portion for government monitoring purposes if they don't wish to furnish the information.
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True
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False
Correct Answer
A. TrueExplanation
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.Rate this question:
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- 16.
The amortization type of a loan defines what?
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Fixed rate
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Graduated payment mortgage
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Arm
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All of the above
Correct Answer
A. All of the aboveExplanation
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.Rate this question:
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- 17.
In the employment section, how many years of employment history must be shown and verified.
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1 year
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2 years
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3 years
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None of the above
Correct Answer
A. 2 yearsExplanation
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.Rate this question:
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- 18.
On a Conventional loan, if the borrower is putting at least ______ % down, no mortgage insurance will be needed.
Correct Answer
20Explanation
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.Rate this question:
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Current Version
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Oct 08, 2024Quiz Edited by
ProProfs Editorial Team -
Nov 04, 2013Quiz Created by
Kathleenh
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