Do You Know About HELOC? Trivia Questions! Quiz

10 Questions | Total Attempts: 100

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Do You Know About HELOC? Trivia Questions! Quiz

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Questions and Answers
  • 1. 
    The structure of a Peoples HELOC is which of the following?
    • A. 

      10 year interest only draw period

    • B. 

      5 year interest only draw period followed by a 10 year amortization with principal and interest payments

    • C. 

      7 year interest only draw period

    • D. 

      15 year amortizing loan

  • 2. 
    The way a borrower can draw on a HELOC is:
    • A. 

      Online transfer from HELOC to a Peoples checking account

    • B. 

      Checks can be ordered to pull from the heloc directly

    • C. 

      Checks can be ordered or debit card from the Peoples checking account the funds can be transferred into via online banking

    • D. 

      A & B

    • E. 

      A & B & C

  • 3. 
    True or False: A borrower can have a HELOC on an investment property?
    • A. 

      True

    • B. 

      False

  • 4. 
    True or False: Pricing needs to be locked with secondary after filling out the mortgage rate calculator?
    • A. 

      True

    • B. 

      False

  • 5. 
    On a simultaneous HELOC which scenario is correct?
    • A. 

      The mortgage loan officer has to call someone in the bank to approve the heloc separate from the 1st.

    • B. 

      The mortgage loan officer can put the HELOC into Encompass along with the first and the mortgage underwriter will approve along with the 2nd

    • C. 

      The mortgage underwriter will approve along with the 2nd in Encompass, however if the loan amount of the 2nd is $250,000 or greater the underwriter will also have to get loan committee approval

    • D. 

      A & C

    • E. 

      B & C

  • 6. 
    Does Peoples allow HELOC’s on out of state loans?
    • A. 

      Yes

    • B. 

      No

  • 7. 
    If the borrower chooses the rate reduction by setting up an AFT which of the following is TRUE?
    • A. 

      AFT (automatic funds transfer) must be set up with a Peoples account so that monthly the payment will pull from the Peoples account and pay the loan payment

    • B. 

      Funds must be deposited into the Peoples account at closing

    • C. 

      Borrower can use that account as a checking account with checks and debit cards, however enough money must be in the account at the 21st of the month to automatically pay the loan payment

    • D. 

      If the borrower closes the checking account or doesn’t have enough funds in the account the borrower will be past due and reported to the credit bureau and the interest rate will go up

    • E. 

      All of the above

  • 8. 
    If you have a “no cost loan” which of the following applies?
    • A. 

      Origination and doc prep fees are waived, however 3rd party closing costs such as (title, appraisal, credit bureau, data verify, etc.) are still the responsibility of the borrower

    • B. 

      There are no costs whatsoever and it’s a completely free loan to the borrower

    • C. 

      Borrower pays origination and doc prep fees but NOT 3rd party costs

    • D. 

      None of the above

  • 9. 
    True or False: $100 annual fee can be waived if AFT is set up from Peoples Bank deposit account?
    • A. 

      True

    • B. 

      False

  • 10. 
    Who prepares the closing for a HELOC?
    • A. 

      Branch Operations

    • B. 

      Branch Managers

    • C. 

      Bank Loan Administration works in conjunction with mortgage closing department for a simultaneous HELOC closing

    • D. 

      IAccounting