Which factor does NOT typically affect PMI premium rates?
Correct Answer
D) Borrower's employment history length
PMI premiums are typically based on loan-to-value ratio, credit score, property type, and loan purpose. Employment history length, while important for loan approval, does not directly affect PMI premium calculations.
Why This Is the Correct Answer
PMI premiums are typically based on loan-to-value ratio, credit score, property type, and loan purpose. Employment history length, while important for loan approval, does not directly affect PMI premium calculations.
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
A borrower's credit profile qualifies them for loans in all three categories: conventional, government, and non-QM. The MLO only presents conventional loans because they believe government and non-QM loans are 'inferior products.' This practice:
Next Question
A borrower's bank statement shows monthly service fees of $25 and overdraft fees totaling $150 over two months. How should the MLO address this in the loan evaluation?