Each question in this quiz is timed.
What is the correct thought process flow when evaluating credit? Choose the correct sequence.
Does credit meet satisfactory credit standards? Is the overall credit acceptable? Is borrower information accurate (Name, address & SSN)? Does a LESA need to be applied? Is an LOE required? Is an extenuating circumstance required? Are there collections and/or charge off accounts that affect satisfactory credit? Are their judgments and liens that need to be addressed?
Is borrower information accurate (Name, address & SSN)? Does credit meet satisfactory credit standards? Are there collections and/or charge off accounts that affect satisfactory credit? Is the overall credit acceptable? Are their judgments and liens that need to be addressed? Is an LOE required? Is an extenuating circumstance required? Does a LESA need to be applied?
Does a LESA need to be applied? Is an LOE required? Are there collections and/or charge off accounts that affect satisfactory credit? Is the overall credit acceptable? Are their judgments and liens that need to be addressed? Is an extenuating circumstance required? Does credit meet satisfactory credit standards? Is borrower information accurate (Name, address & SSN)?
Upon review of the loan transaction you determine that the borrower has acceptable credit and RI of 62%. After applying all compensating factors you are now at RI of 83%. Which of following actions are required?
You decline the loan, it does not meet RI requirement.
You apply a LESA and obtain a credit exception for RI.
You obtain extenuating circumstances and waive the LESA.
You approve the loan.
You apply a LESA, approve the loan.
When is the underwriter required to complete the Sustainability Worksheet?
On every loan whether they like it or not.
When RI is less than 100%.
When there is something outside the box that requires explaining.
When they have time and it is not month end.
After a file is submitted into underwriting, one of the borrower’s decides they want to be removed from the loan transaction. What must be done next?
An LOE from the borrower being removed must be in file explaining this was done at their request.
A new Case Assignment must be obtained removing the borrower
The loan must be adversed and a new application and loan number created with only the remaining borrower
A new credit report must be ran with only the existing borrower left and loan re-qualified.
A loan for a husband and wife is in processing nearing CTC and one of the borrower’s dies. What must be done in order for this loan to close?
The remaining conditions must be cleared before CTC.
A death certificate must be provided and a new Quit Claim/Grant Deed prepared.
The loan must be adversed and a new application and loan number created with only the remaining borrower.
When a loan is "re-app’d" what has to happen?
A new application is signed and all previously ordered services can be used (provided services haven’t expired).
A new application and loan # are created and all previously ordered services can be used (provided services haven’t expired).
You can never re-app an existing loan.
A new loan # is created and the application and previously ordered services remain the same (provided services haven’t expired).
A loan has been underwritten and during the processing of the loan the appraisal expires. What happens next?
The loan must be "re-app’d" and the process started all over.
The borrower must be re-counseled and then a 2nd appraisal can be ordered.
A new case number must be obtained and then a 2nd appraisal can be ordered.
A 2nd appraisal is ordered.
A loan has been underwritten and during the processing of the loan the Case Assignment expires. What happens next?
The borrower must be re-counseled and the loan can proceed.
A new case number must be obtained and then a new appraisal obtained.
As long as the case assignment was obtained after counseling the loan can still close as-is .
A loan has been underwritten and during the processing of the loan the Counseling expires. What happens next?
The borrower must be re-counseled and the loan can close as-is.
As long as the case assignment and appraisal are active you can close the loan as-is.
The borrower must be re-counseled and a new case assignment ordered.
