Do You Know About HELOC? Trivia Questions! Quiz

10 year interest only draw period

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

7 year interest only draw period

15 year amortizing loan

Online transfer from HELOC to a Peoples checking account

Checks can be ordered to pull from the heloc directly

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

A & B

A & B & C

True

False

True

False

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

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

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

A & C

B & C

Yes

No

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

Funds must be deposited into the Peoples account at closing

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

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

All of the above

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

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

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

None of the above

True

False

Branch Operations

Branch Managers

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

IAccounting