General Mortgage Knowledge

A self-employed borrower's eligible business income, after all required underwriting adjustments, is $72,000 for the first year and $84,000 for the second year. Using a simple 24-month average, what monthly income is used?

In a file escalation meeting, a processor sees facts tied to Discount Points Break Even Analysis. What should the file reflect?

During a mortgage operations checklist, a sponsorship reviewer identifies an issue involving points and fee calculations. Which response is most compliant?

A team member asks about DTI Calculation Guidelines in a consumer complaint triage while trying to explain the required action to the team. Which response should the file reviewer use?

A mortgage file is paused during a lock-desk handoff because of VA Loan Entitlement Calculation. Which answer should identify which rule controls the file?

A mortgage team asks a branch supervisor about DTI Calculation Rules during a company policy update. Which answer should guide the file?

A mortgage team asks a sponsorship reviewer about DTI Calculation Components during a file review. Which answer should guide the file?

Before the loan advances, a state compliance officer must resolve a LTV Ratio Calculation issue in a mortgage operations checklist. What should happen?

Before the loan advances, a branch supervisor must resolve a ARM features and caps issue in a ARM features and caps. What should happen?

In a closing-readiness check, a processor sees facts tied to LTV Calculation. What should the file reflect?

A mortgage file is paused during a secondary-market screen because of FHA Streamline MIP Calculation. Which answer should identify which rule controls the file?

In a closing-readiness check, a risk reviewer sees facts tied to TILA Truth in Advertising. What should the file reflect?

Before the team acts on a servicing handoff check, a policy analyst must address LTV and CLTV Ratios. Which response is most defensible?

A pre-closing checklist raises a Closing Process question for a compliance analyst. What answer should guide the file?

An operations lead is resolving Secondary Market GSEs during an internal audit sample. Which action best fits the rule?

Before the team acts on a production meeting, an operations lead must address GSE Purchase Programs. Which response is most defensible?

An audit analyst is resolving ARM Features and Caps during an internal audit sample. Which action best fits the rule?

In a training scenario, a trainee asks which official source controls FHA single-family origination policy. What action best follows the rule?

Before the team acts on a branch training session, an audit analyst must address FHA Loan Programs. Which response is most defensible?

During a post-application update, the MLO encounters a Qualifying Ratios issue. Which response should confirm the rule-based response?

The MLO is resolving Secondary Market GSEs during a quality-control sample. Which action best fits the rule?

The supervisor compares the file facts with Reverse Mortgage Payment Options during a borrower follow-up call. Which conclusion is accurate?

A processor handoff raises an FHA Mortgage Insurance question for a risk reviewer. What answer should guide the file?

A compliance analyst compares the file facts with LTV Ratio Calculation during a licensing team review. Which conclusion is accurate?

During a training quiz scenario, the branch manager encounters an RESPA Settlement Procedures issue. Which response should apply the requirement without relying on borrower preference?

Before the team acts on a branch training session, the supervisor must address Refinance Types. Which response is most defensible?

In a file escalation meeting, a training manager sees facts tied to DTI Ratio Calculations. What should the file reflect?

A team member asks about LTV CLTV Calculations in an investor-delivery review while trying to confirm the rule-based response. Which response should a compliance analyst use?

A compliance review finds that a trainee asks which official source controls FHA single-family origination policy. What should the MLO do next?

A branch manager asks about a loan file because a trainee asks which official source controls FHA single-family origination policy. What should happen?

The loan team compares the file facts with ARM Cap Structures during a borrower follow-up call. Which conclusion is accurate?

A borrower has a 30-year fixed-rate mortgage with monthly principal and interest of $1,450. Property taxes increase, and taxes are paid through escrow. What can happen to the total monthly payment?

A fixed-rate loan is amortized over 30 years but requires the remaining balance after 7 years. What feature does it contain?

An audit analyst is resolving LTV CLTV Calculations during a quality-control sample. Which action best fits the rule?

A loan has an outstanding principal balance of $240,000 and a 6% annual interest rate. Using simple monthly accrual, how much interest accrues for one month?

A borrower wants the lowest total scheduled interest and can afford a higher payment. Comparing fixed-rate loans with the same amount and rate, which term generally best meets that goal?

A fully amortizing fixed-rate payment is $1,500. The interest due for the month is $1,100, and there are no fees or escrow items in that payment. How much reduces principal?

Which change causes negative amortization?

Two fully amortizing fixed-rate loans have the same amount and interest rate, but one has a 15-year term and the other a 30-year term. Which statement is generally true?

A loan requires monthly interest-only payments for five years and then begins fully amortizing. Which statement is accurate?

A $300,000 loan carries a 5% annual fixed rate. Approximately how much simple interest accrues in the first month before considering the payment?

Which feature is fixed on a standard fixed-rate mortgage?

What does an amortization schedule show for each scheduled payment?

A borrower reviews an amortization schedule and sees that the balance reaches zero after the final scheduled payment. What does this indicate?

A borrower's fixed monthly principal-and-interest payment is $1,600, and the escrow deposit is $450. What total amount is collected for the scheduled monthly payment?

A monthly principal-and-interest payment is $1,800, of which $1,250 is interest. How much principal is paid that month?

A borrower chooses between two otherwise identical 30-year fixed-rate loans: one at 6.0% and one at 6.5%. Which loan generally has the lower scheduled principal-and-interest payment?

A homeowner replaces an existing mortgage with a new loan, receives no cash beyond closing adjustments, and uses all proceeds to pay off the old lien and refinance costs. How is the transaction best classified?

A fully amortizing loan has a principal balance of $100,000 immediately before a $900 principal-and-interest payment. If $500 of the payment is interest, what is the new principal balance?

A consumer obtains a loan from a new creditor to purchase the consumer's principal dwelling, and the loan is secured by that dwelling. Does the federal three-business-day right of rescission generally apply?