A loan application receives a 'Refer/Eligible' recommendation from Desktop Underwriter (DU). What does this mean?
Correct Answer
C) The loan meets Fannie Mae guidelines but requires manual underwriting review
A 'Refer/Eligible' recommendation from DU means the loan meets Fannie Mae's basic eligibility requirements but contains risk factors that require human underwriter review and analysis.
Why This Is the Correct Answer
A 'Refer/Eligible' recommendation from DU means the loan meets Fannie Mae's basic eligibility requirements but contains risk factors that require human underwriter review and analysis.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
Which circumstance would NOT be considered a valid changed circumstance for purposes of providing a revised Loan Estimate?
Next Question
A lender provides a revised Loan Estimate due to a changed circumstance but fails to include the required changed circumstance disclosure. What is the consequence?