For a Fannie Mae loan using one salaried job, a borrower moved seven weeks ago to a non-family, non-interested-party employer in the same field at higher base pay, following six years with the previous employer and no gap. What do these facts indicate, subject to income and employment verification?
Correct Answer
C) They can support a reliable employment pattern; the recent move is not an automatic disqualification
C. These facts support further qualifying analysis rather than an automatic waiting period. The review considers the employment pattern, not simply time with the present employer. Consistent, predictable income can remain reliable despite job changes. Scope and exceptions: Verify actual current income and relevant employment conditions. A higher salary alone does not establish eligibility. Multiple concurrent jobs, family employment, variable income and self-employment have separate requirements. Source: Employment; Job Changes; Multiple Jobs; Employment by Family or Interested Party — https://guide-selling.fanniemae.com/sel/b3-3.2-02/standards-employment-related-income
Why This Is the Correct Answer
C. These facts support further qualifying analysis rather than an automatic waiting period. The review considers the employment pattern, not simply time with the present employer. Consistent, predictable income can remain reliable despite job changes. Scope and exceptions: Verify actual current income and relevant employment conditions. A higher salary alone does not establish eligibility. Multiple concurrent jobs, family employment, variable income and self-employment have separate requirements.
Why the Other Options Are Wrong
Option A: Not acceptable until she has 2 years with the current employer
It invents a universal two-year current-employer requirement.
Option B: Not acceptable: any job change inside 12 months disqualifies a file
A recent change is not categorically disqualifying.
Option D: Acceptable only after she completes a 90-day probationary period
The cited standard does not impose a universal 90-day probation rule.
Exam Tip
Evaluate the income pattern and documentation rather than using job-change age as a shortcut.
More Origination Questions
Before the team acts on a servicing handoff check, a closing coordinator must address Asset Verification and Reserves. Which response is most defensible?
An MLO is reviewing procedures for a case where a cost changes after the Closing Disclosure has already been provided. What is the proper handling?
During a post-application update, a quality-control reviewer encounters a Credit Analysis and Evaluation issue. Which response should avoid a shortcut that would misapply the rule?
A construction-to-permanent loan will disburse in 5 draws over 11 months before the permanent phase begins. Which Regulation Z appendix provides a disclosure method for multiple-advance construction transactions?
Before closing, the team discovers that a borrower asks which upfront charge can be collected before intent to proceed. What is the safest compliant answer?
A construction loan agreement allows advances only after documented completion of specified work. A builder requests the next draw, but no completion evidence has been provided. What should occur?
Before releasing the final construction draw, which combination most directly supports project completion and clear collateral?
A construction-to-permanent loan will convert to a substantially higher fully amortizing payment. Which payment is especially important when assessing the borrower's long-term repayment capacity?
A construction-to-permanent note states that conversion requires completion, a certificate of occupancy, and no unresolved liens. Construction is finished, but a mechanic's lien remains. What should happen?
A branch manager asks about a loan file because a processor wants to omit known monthly obligations from underwriting. What should happen?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam