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297 lines
84 KiB
297 lines
84 KiB
4 months ago
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id&qtp&qim&qil&qtx&qca&qia&qrm&qnxt&qprv&qalb&subj&wght&pts&flr&ded&layout&qfixed&qptsbyans&flags
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lcert190.001&tf&0&Y&For loans that are delivered to Freddie Mac as A-minus mortgages, the lender is not required to determine the borrower�s willingness and ability to repay.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.002&tf&0&N&For Accept Mortgages, Loan Prospector has determined that the borrower's credit is sufficient regardless of the number of tradelines established.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.003&mcs&0&Y&The maximum seller contribution on an 80% LTV investor loan is:&2%;&3%;6%;9%;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.004&mcs&0&Y&When is the lender responsible for determining the appropriate MI coverage?&Always, whether the loan is evaluated by LP or manually underwritten&Never;Only when the loan is manually underwritten;Only when LP returns a Caution risk class on the Feedback Certificate;&&&&a&lpprod.0&&&&&1:v&&&N.
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lcert190.005&tf&0&Y&For LP evaluated mortgages, Freddie Mac will review and underwrite only the minimum credit, income, employment and asset documentation required and ignore documentation in the file that is in excess of the minimum requirements. &TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.006&mcs&0&Y&An A-minus mortgage must have the following characteristics, EXCEPT:&May be a 5-year Balloon/Reset mortgage;&A Caution Mortgage with the feedback message ``Freddie Mac Eligible A-minus Offering'' in the Purchase Eligibility section of the Feedback Certificate;Must be documented in accordance with the requirements for Standard documentation;May be an adjustable rate mortgage;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.007&tf&0&Y&For an A-minus mortgage, the lender must warrant that during the prior 12-month period, the borrower was not delinquent over 30 days more than twice and was never delinquent 60 days or more on any mortgage or combination of mortgages that are directly verified.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.008&mcs&0&Y&For an A-minus loan, the borrower may not have had a bankruptcy discharged in the last _____ years. &Two&Seven;Three;Five;&&&&a&lpprod.0&&&&
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lcert190.009&mcs&0&Y&An Alt 97 mortgage must have the following characteristics, EXCEPT:&Borrower(s) must contribute 3% of their own funds to the transaction;<V ratio equal to or greater than 90% but not greater than 97%;Secured by a 1-unit primary residence;All borrowers must occupy the mortgaged premises;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.010&tf&0&Y&An Alt 97 loan is an alternative to an FHA loan, particularly in high housing cost areas.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.011&tf&0&Y&For an Alt 97 mortgage, the mortgage insurance coverage must be equal to 35%. &TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.012&mcs&0&Y&Each Alt 97 mortgage must be: &A manually underwritten mortgage with a minimum Indicator Score of 700 or an Accept mortgage;&An Accept mortgage;A manually underwritten mortgage with a minimum Indicator Score of 700;;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.013&mcs&0&Y&Loan products that are designed for borrowers with a less than perfect credit history or questionable capacity include the following except:&A-minus;&Alt 97;Affordable Gold 5;Affordable Gold 5 and Alt 97;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.014&mcm&0&Y&For an Alt 97 mortgage, the borrower may obtain an unsecured loan from a related person or agency if: (Select all that apply)&The unsecured loan is documented on the loan application, and required payments are included in calculating the monthly debt-payment-to-income ratio;The lender of the unsecured loan is not an interested party to the transaction;The mortgage file contains documentation evidencing the terms of the unsecured loan ;The terms of the unsecured loan from the borrower's employer do not require payment in full in the event the borrower no longer works for the employer ;The unsecured loan is not a credit card advance or unsecured line of credit;&&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.015&tf&0&Y&For Alt 97 Mortgages, where the borrower does not meet income requirements applicable to Affordable Gold Mortgages, secondary financing (not including a Home Equity Line of Credit) is acceptable as long as the LTV does not exceed 92% and the TLTV does not exceed 97%.&TRUE&FALSE&&&&&lpprod.0&&&&
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lcert190.016&mcs&0&Y&An Alt 97 mortgage requires an offering identifier code to be submitted to LP for evaluation:&210;&220;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.017&mcm&0&Y&Affordable Merit Rate mortgages must be: (Select all that apply)&A Caution mortgage with the feedback message <i>Freddie Mac Eligible A-Minus Offering</i>;A purchase or <i>no cash-out</i> refinance;A fixed-rate mortgage that fully amortizes over a 30-year period;Secured by a 1- or 2-unit primary residence;&&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.018&mcs&0&Y&Affordable Merit Rate Mortgages must NOT be a:&Mortgage with a temporary subsidy buy down plan;Seasoned mortgage;Prepayment Protection mortgage;&None of the above;&deleted&&&a&lpprod.0&&&&
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lcert190.019&tf&0&Y&For an Affordable Merit Rate mortgage, the lender must verify and document that during the prior 12-month period, the borrower was not delinquent over 30 days more than twice and was never delinquent 60 days or more on any mortgage or combination of mortgages that are directly verified. Direct verification is required only when the debt is not verified or does not contain a 12-month payment history on the LP in-file credit reports.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.020&mcm&0&Y&What special features does an Affordable Merit Rate mortgage have? (Select all that apply)&There is no post-settlement delivery fee for A-Minus eligible mortgages delivered as Affordable Merit Rate mortgages;The loan is subject to the quality control requirements for a Loan Prospector Accept mortgage;The borrower is eligible for a note rate reduction during the first 48 months of the mortgage if certain qualifications are met;&&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.021&tf&0&Y&A Caution mortgage that receives an A-minus eligible feedback message will be assessed an A-minus mortgage post settlement delivery fee if it is delivered as an Affordable Merit Rate mortgage.&FALSE&TRUE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.022&mcs&0&Y&Which product type does <u>not</u> allow a Financed Permanent Buydown:&3/1 ARM;&Fixed-rate, level-payment mortgage;5/1 ARM;10/1 ARM ;7/1 ARM;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.023&mcs&0&Y&deleted - you may reuse this for a new question if you like.&None of the above;&B;A;P;Z;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.024&mcs&0&Y&The maximum amount a borrower can finance for a permanent buydown is ____ discount points, calculated based upon the base mortgage amount.&3;&5;7;9;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.025&mcm&0&Y&Freddie Mac 100 mortgages: (Select all that apply)&Must be a fixed-rate, level payment purchase transaction;Must be secured by a 1-unit primary residence;Must have an LTV ratios greater than 97% but not greater than 100%;&&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.026&mcs&0&Y&The correct LP offering identifier for the Freddie Mac 100 mortgage is:&220;&210;Alt A;500;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.027&tf&0&Y&Each Freddie Mac 100 mortgage must be either an Accept Mortgage or a Non-Loan Prospector mortgage with a minimum Indicator Score of 700 and there must be no evidence of a bankruptcy, foreclosure or deed-in-lieu of foreclosure in the last seven years.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.028&tf&0&Y&Caution loans are eligible for delivery as Freddie Mac 100 loans?&FALSE&TRUE&&&&&lpprod.0&&&&
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lcert190.029&tf&0&Y&The borrower's monthly debt payment-to-income ratio must not exceed 41% of the borrower's stable monthly income for a Freddie Mac 100 Mortgage regardless of whether the loan is a Loan Prospector Mortgage or a Non-Loan Prospector Mortgage. &TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.030&mcs&0&Y&Even though a down payment is not required for a Freddie Mac 100 Mortgage, the borrower must have at least _____ percent borrower funds in the transaction that may include a gift from a relative.&3%;&0%;2%;5%;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.031&tf&0&Y&For a Freddie Mac 100 Mortgage, the borrower is not required to have sufficient reserves for two monthly payments (total principal, interest, taxes and insurance).&FALSE&TRUE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.032&mcs&0&Y&Freddie Mac 100 Mortgages must have ____ percent mortgage insurance coverage.&40%;&18%;30%;35%;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.033&mcs&0&Y&What Affordable Gold product combines a 95% LTV ratio with 3% of the down payment coming from borrower funds?&Affordable Gold 3/2;&Affordable Gold 5;Affordable Gold 97;Affordable Gold Alt 97;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.034&mcs&0&Y&For purchase transaction Affordable Gold Mortgages, at least one qualifying borrower must participate in a homeownership education program before the Note Date of the Affordable Gold Mortgage, unless at least one qualifying Borrower: &Has previously owned a home;Makes a down payment of at least 5%;Has reserves after closing equal to at least two monthly mortgage payments;&&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.035&tf&0&&Affordable Gold 5 and Affordable Gold 97 Mortgages are the only two Affordable Gold Mortgage products that may be submitted to Loan Prospector.&TRUE&FALSE&&&&&lpprod.0&&&&
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lcert190.036&mcs&0&Y&The maximum conventional conforming loan amount for a 1-unit property in 2002 is:&$300,700&$275,000;$252,700;$300,000;&&&&a&lpprod.0&&&&&1:v&&&N.
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lcert190.037&mcm&0&Y&Borrowers must qualify at the maximum second-year rate for all ARMs with the following characteristics: (select all that apply)<V is above 80% and the initial period discount is 2% or less;Loan term is greater than 15 years;&;LTV is above 75% and the initial period discount is 2% or less;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.038&mcs&0&Y&What does the Purchase Eligibility feedback message �500 Freddie Mac Eligible A-Minus Offering� indicate?&A-minus offering&Acceptable to Freddie Mac for purchase;Eligible for evaluation by Freddie Mac;Conventional conforming loan;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.039&tf&0&&A loan that is eligible for custom MI must have an LTV greater than 85% up to 95%.&TRUE&FALSE&&&&&lpprod.0&&&&
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lcert190.040&mcs&0&Y&deleted - you may reuse this for a new question if you like.&None of the above;&Either an Accept or A-minus or be manually underwritten mortgage with a minimum Indicator Score of 720;Be a manually underwritten mortgage with a minimum Indicator Score of 720;Be an Accept or eligible for delivery as an A-minus mortgage;&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.041&tf&0&Y&Loan Prospector evaluates the income limit requirements for Affordable Gold products.&FALSE&TRUE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.042&tf&0&Y&Freddie Mac will purchase a 1-unit, primary residence, fixed-rate, cashout refinance mortgage without secondary financing up to 90% LTV, subject to a delivery fee.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.043&mcm&0&Y&Which of the following data field(s) does Loan Prospector evaluate as a total? (Select all that apply)&Total monthly debt;Total income for all borrowers;Reserves;&&&&&a&lpdata.0&&&&&1&&&N.
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lcert190.044&tf&0&N&Loan Prospector assesses all data provided on the loan application.&FALSE&TRUE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.045&tf&0&Y&If you ordered merged credit reports from Loan Prospector, you must resubmit the loan in order to view the in-file credit reports.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.046&mcs&0&Y&The minimum number of data fields required for LP to evaluate a mortgage are: &45;&100;75;&&&&a&lpdata.0&&&&&1&&&N.
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lcert190.047&mcs&0&Y&Data errors in Loan Prospector may be indicated by: &A red "X" or an "invalid" evaluation status;A feedback message on the Feedback Certificate informing you of what you need to correct;&A red line through the field;&&&&a&lpdata.0&&&&&1&&&N.
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lcert190.048&tf&0&Y&You are logging into Loan Prospector on the Internet for the first time. Loan Prospector will prompt you to change your password before allowing you to access the website.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.049&mcs&0&Y&Which of the following is required for Standard documentation for a conventional mortgage that receives a Caution risk class?&Verification of mortgage debt when the mortgage debt is not adequately shown on the credit reports&Proof of liquidation when the asset being sold is exchange traded;Explanation for employment gaps shorter than 60 days;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.050&mcs&0&Y&Which of the following documentation requirements are waived for conventional mortgages evaluated through Loan Prospector?&A gift letter signed by the donor and evidence that the gift funds will be transferred into the borrower�s account when the gift is already in the borrower�s account;Explanation for derogatory credit on an Accept loan;Rental verification/history for the most recent 12 months on Accept mortgages;&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.051&mcs&0&Y&Which case does NOT require resubmission to Loan Prospector?&The borrower�s income increases&The appraisal report indicates a different value from the original estimate of value;You correct a typo in the subject property address;The date on the in-file credit report pulled by Loan Prospector is greater than 120 days;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.052&tf&0&N&If a borrower owns 25% or more of a business, the lender must indicate the borrower is self-employed in Loan Prospector and on the loan application, even if the income is not used for qualification.&TRUE&FALSE&&&&&lpdoc.0&&&&
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lcert190.053&tf&0&Y&Loan Prospector on the Internet can evaluate a borrower who has lived outside the United States during the past two years as long as the borrower has a current U.S. address and a sufficient credit history.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.054&mcs&0&Y&When will Loan Prospector pull new credit reports for ALL borrowers?&On a resubmission that is greater than 120 days from the date of the current in-file credit report pulled by Loan Prospector&On every resubmission of the loan;When you add a trade line to the loan application;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.055&mcs&0&Y&When using Loan Prospector, which of the following debts would you exclude from the total liabilities?&Payment for loans against a secured financial asset (i.e., stock, 401k, etc.)&Alimony or child support;Negative rent;Separate maintenance;Any debts listed on the application that do not appear on the credit report;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.056&mcs&0&Y&There are three income classifications used by Freddie Mac: employed income, self-employed income and non-employed (other) income. Employed income is described as:&Base pay income reported on pay stubs or salary vouchers supported by W2 earnings.&Other income sources such as from a pension, social security, dividends and interest and/or trust income;Income reported on federal income tax returns from self-employment when 25% or more ownership of the business is indicated;Income sources from alimony or child support;Income sources from rental property;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.057&mcs&0&Y&There are three income classifications used by Freddie Mac: employed income, self-employed income and non-employed (other) income. Self-employed income is described as: &Income from a business in which the borrower has 25% or more ownership&Base pay income reported on pay stubs or salary vouchers supported by W2 earnings;Other income sources such as from a pension, social security, dividends and interest and/or trust income;Income sources from alimony or child support;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.058&mcs&0&Y&There are three income classifications used by Freddie Mac, employed income, self-employed income and non-employed (other) income. Non-employed (other) income is defined as:&Other income sources like a pension, social security, dividends and interest and/or trust income, alimony and child support, and rental property income&Base pay income reported on pay stubs or salary vouchers supported by W2 earnings.;Income reported on federal income tax returns from self-employment when 25% or more ownership of the business is indicated;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.059&mcs&0&Y&All loans sold to Freddie Mac must have a loan amount that is:&Neither rounded up or down;&Rounded down to the nearest $100.00;Rounded up to the nearest $50.00;Rounded down to the nearest $50.00;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.060&tf&0&N&For loans that receive an Accept, the lender is NOT required to determine if the borrower has an acceptable credit reputation.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.061&mcs&0&N&The lender must always obtain direct mortgage verification for:&Caution, A-minus and non-Loan Prospector mortgages, if the credit report does not show the mortgages listed on the loan application.;&Accept mortgages;Any mortgage when the debt-to-income ratio exceeds 50%;Mortgages delivered under the A-minus eligible program where significant debts are not reflected on the credit report;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.062&mcs&0&N&For self-employed borrowers, profit and loss statements are: &Not required for a conventional mortgage&Required if the borrower has been self-employed for less than two years;Always required for self-employed borrowers;Required if the borrower reported a net loss the prior year;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.063&mcs&0&Y&Business tax returns may be required for self-employed borrowers on conventional loans in the following circumstances: &Only Standard documentation mortgages;&All conventional loans, including all Loan Prospector and non-Loan Prospector mortgages;Only Caution loans;Only non-Loan Prospector loans;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.064&mcs&0&N&Individual federal income tax returns are required for the most recent two years for self-employed borrowers who receive a _________ documentation level through Loan Prospector.&Standard&Accept Plus;Streamlined Accept;Both Streamlined Accept and Standard;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.065&tf&0&Y&Borrowers are NOT required to have 5% of their own funds in the transaction on an 80/10/10 mortgage.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.066&mcs&0&Y&On all loans, the borrower's alimony, child support and/or separate maintenance income must be documented with selected pages from the divorce decree and proof of receipt for:&3 months&24 months;12 months;6 months;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.067&tf&0&&Funds to close must be verified on a no-cash out refinance transaction.&FALSE&TRUE&&&&&lpdoc.0&&&&
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lcert190.068&tf&0&N&Gift funds cannot be used for down payments and closing costs on investment property transactions.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.069&mcm&0&Y&A 12-month mortgage payment history is required if a mortgage(s) does NOT appear on the credit report or if the credit report does NOT contain a current 12-month mortgage history on loans evaluated through Loan Prospector that receive a: (Check all that apply)&Caution risk class;A-minus eligibility;&Accept risk class;All loans require verification of mortgage;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.070&mcs&0&Y&For conventional mortgages that receive an Accept Plus documentation class through Loan Prospector:&The lender is required to document only the primary (largest) source of income unless the self-employed income is more than 25% of the total stated income&The lender is not required to document income because stated income is used to qualify;The lender must document all income with a verbal VOE, or most recent pay stub or written VOE;The lender must document all income with a verbal VOE only;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.071&mcs&0&N&For conventional mortgages that receive an Accept Plus documentation level through Loan Prospector, the lender is required to document self-employment as follows.&If income from self-employment is more than 25% of the borrower�s total income, provide signed pages 1 and 2 of the most recent individual federal income tax return&Always provide pages 1 and 2 of the most recent individual federal income tax return;No verification is required as stated income is used to qualify;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.072&tf&0&Y&For conventional mortgages that receive an Accept Plus documentation class through Loan Prospector, the lender must use the documented income to qualify if it is less than the stated income.&FALSE&TRUE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.073&mcs&0&Y&For conventional mortgages that receive a Streamlined Accept documentation class through Loan Prospector, employed income can be verified with the:&Most recent YTD pay stub covering one full month of earnings and W2s covering the most recent tax year;&Most recent YTD pay stub covering one full month of earnings and verbal VOE;Most recent YTD pay stub covering one full month of earnings, verbal VOE, and W2s covering the most recent tax year;Verbal verification only if the borrower has been on the job for over one year;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.074&mcs&0&Y&When is the self-employed borrower required to sign the IRS Form 4506/8821?&At application and have the borrower sign another form on the note date to be used in the post-funding quality control process;At application and send the form to the IRS during the processing of the mortgage;&On the note date;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.075&mcs&0&Y&For conventional mortgages that receive a Streamlined Accept documentation class through Loan Prospector, non-employed income should be documented (when applicable) with: &An award letter;A pension statement;Most recent, complete, one-year individual federal income tax returns;An IRS Form 1099;&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.076&tf&0&N&For conventional mortgages that receive an Accept Plus documentation level through Loan Prospector, the HUD-1 (closing statement) is still required to document the sale of real property when the proceeds are to be used for closing.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.077&mcm&0&Y&Which documentation class requires you to verify proceeds from the sale of an asset (other than real property or exchange traded securities) with a bill of sale and proof of receipt, or document the existence, ownership and value of the asset through a third party and a letter of intent or contract? (Select all that apply)&Accept Plus;Streamlined Accept;Standard;&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.078&mcs&0&Y&Inquiries within the last 90 days appearing on the credit report must be addressed on mortgages sold to Freddie Mac that receive:&All mortgages, regardless of the risk class;&Caution risk class;Accept risk class;Accept or Caution risk class;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.079&mcs&0&N&On a conventional mortgage, if the borrower�s credit report contains significant inaccurate information, you must:&Disregard the FICO score&Downgrade the risk class to Caution;Attempt to adjust the FICO score;Reject the loan;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.080&mcm&0&N&Freddie Mac requires which of the following debts to be paid off prior to closing for conventional mortgages. (Select all that apply)&Judgments that affect the first lien position;Tax liens that affect the first lien position;&Collection accounts over $500;;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.081&mcs&0&Y&Explanation of derogatory credit information is required on all conventional mortgages evaluated through Loan Prospector: &As determined by the seller for all Caution risk class mortgages or any transactions that receive Invalid, Incomplete or Ineligible from LP;&Regardless of risk or documentation class;That receive a Standard documentation class;For all Caution mortgages, including those delivered to Freddie Mac as A-minus mortgages;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.082&mcs&0&Y&When underwriting with FICO scores, the lender may use the following factor(s) as offsets for weaknesses in the borrower's credit reputation:&Isolated incidences that are outside of the borrower�s control and render the borrower unable to pay the debt(s);&The absence of, or age of, derogatory information;The number/proportion of accounts paid as agreed versus delinquent;The account types paid as agreed versus the account types that are delinquent ;Recent pay-down or consolidation of account balances by the borrower;The timeframe of the borrower�s credit history;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.083&tf&0&N&If a borrower's credit history includes both tradelines and noncredit payment references, the noncredit payment references cannot be used to offset derogatory credit in a tradeline reference.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.084&mcs&0&Y&Derogatory credit information is NOT considered significant when it consists only of isolated late payments, even if several accounts show sporadic late payments, provided the following exist:&The late payments are not recent;The late payment does not extend beyond one month;The number and size of delinquent accounts is not large in relation to the overall credit and all other credit has been paid as agreed;The rest of the credit history does not show multiple revolving accounts with high balances-to-limits or high overall utilization of revolving credit;&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.085&mcs&0&Y&Derogatory credit information is considered significant in which of the following circumstances?&There are several accounts showing recent late payments;There are multiple 60- or 90-day late payments;The number and size of the delinquent accounts are large in relation to the overall credit;The credit history shows derogatory credit information within the two most recent years combined with multiple revolving accounts with high balances-to-limits;&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.086&tf&0&Y&For mortgages that receive an Accept evaluation through Loan Prospector, it is not necessary to document a bankruptcy with a credit explanation, bankruptcy filing, and list of creditors or copy of the discharge.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.087&mcm&0&Y&When the credit report reflects a contingent mortgage debt due to divorce, the following documentation is required in order to exclude this debt from the borrower�s total liabilities. (Select all that apply)&Document the �transfer of title� with a copy of the appropriate legal document;Provide a copy of the appropriate legal document indicating the ex-spouse is required to make the payments.;&Canceled checks showing the ex-spouse is actually making the payments;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.088&mcm&0&N&Reserves are required on a variety of mortgage transactions. Which of the following examples would require reserves? (Select all that apply)&Whenever rental income on the subject property is used in qualifying;Whenever a bridge loan payment exists but is not used in the qualifying ratios;Investment property mortgages;&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.089&mcs&0&Y&Which of the following warranties are relieved when the sellers receive an Accept risk class with "No Appraisal" MAF from Loan Prospector, provided the amount of stable monthly income used by Loan Prospector is correct?&Determining if the borrower�s monthly housing and monthly debt ratios meet Freddie Mac requirements.;Determining if the borrower�s exhibit a willingness to repay and an acceptable credit reputation is evidenced;Determining if the value, marketability and condition of the subject property meet Freddie Mac requirements;&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.090&tf&0&Y&A non-U.S. citizen who is lawfully residing in the U.S. as a non-permanent resident alien is eligible for a mortgage under the same terms as a U.S. citizen.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.091&mcs&0&&An employment gap letter is required on Standard documentation loans if the gap is over _____ days.&60 days&30 days;90 days;120 days;&&&&a&lpdoc.0&&&&
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lcert190.092&mcs&0&N&Gift letters are not required as long as certain information regarding the donor is captured on the application. Which item listed is NOT required?&Donor�s telephone number&Donor�s name;Donor�s mailing address;Donor�s relationship to the borrower;Dollar amount of the gift;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.093&mcs&0&Y&For an investment property, how many properties does Freddie Mac allow the borrower to currently carry financing:&10;&unlimited;6;4;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.094&tf&0&N&For loan-to-value (LTV) ratios greater than 80%, borrowers exhibit minimum required contribution of their own funds (for non-occupant co-borrower transactions, funds must be from occupant borrower).&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.095&mcs&0&N&For all mortgages in which the borrower is self-employed, Freddie Mac:&Recommends a two-year history of self-employment to ensure stability&Requires a two-year history of self-employment;Requires a 12-month history of self-employment;Recommends a 12-month history of self-employment to ensure stability;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.096&mcs&0&Y&Borrowers who are involved in hobby businesses such as Avon or Tupperware may be considered:&Commissioned wage earners;&Self-employed;This income is not considered as it is not stable;W2 wage-earners;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.097&mcm&0&N&Which of following data is required on a paystub for it to be acceptable to Freddie Mac. (Select all that apply)&Computer-generated or typed by the employer;The time period covered;Both the current period and year-to-date earnings;The borrower�s identification (name, employee ID, etc.);&&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.098&tf&0&N&The appraisal report indicates a value of $157,000, but the estimated value entered into Loan Prospector was $155,000. In this case, the lender needs to resubmit the mortgage to Loan Prospector.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.099&tf&0&Y&The borrower has decided to change the mortgage from a 15-year to a 30-year term. In this case, the lender needs to resubmit the loan to Loan Prospector.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.100&mcs&0&Y&Resubmission of a mortgage to LP is NOT required if the income for any borrower decreases, and the total difference does not change the total debt-to-income by more than _____. &3%;&2%;5%;10%;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.101&tf&0&Y&The borrower informs the lender that the previous contract fell through on the home he planned to buy, so he put the current contract on the home down the street for the same price. He is closing on the new mortgage the next day and it has received an Accept risk class through Loan Prospector. The lender needs to resubmit the mortgage to Loan Prospector?&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.102&mcs&0&Y&The lender submitted a mortgage to Loan Prospector with $18,000 in reserves but the bank statement shows the borrower will only have $15,000 in reserves. Why does the lender need to resubmit the mortgage to Loan Prospector?&The amount of verified reserves decreased by more than 10%&Any decrease in reserves requires resubmission;The reserves amount exceeded $10,000;&&&&a&lpdoc.0&&&&&1:v&&&N.
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lcert190.103&mcs&0&Y&The contract indicates a sales price of $100,000, a mortgage amount of $95,000 and the seller is paying $4,000 toward the borrowers' closing costs and pre-paids. Is this acceptable?&No - the maximum contribution is 3% on a 95% LTV;&No - contributions are not allowed on a 95% LTV;Yes - the maximum contribution is 6% on a 95% LTV;Yes - the maxium contribution is 5% on a 95% LTV;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.104&tf&0&Y&The borrower is purchasing an investment property. He is short of funds to close and wants to get a gift from a relative. This is an acceptable source of funds for this transaction.&FALSE&TRUE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.105&tf&0&Y&A mortgage with a non-occupying borrower was submitted to Loan Prospector and receives an Accept/Streamlined Accept. However, the ratios for the occupying borrower are 40% and 47%. Is this acceptable?&YES&NO&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.106&tf&0&N&The borrower took out a loan of $7,000 against her stock account for funds to close. She did not disclose the stock on her application and provides a document indicating the payment on the debt is $204 per month. This debt must be considered for qualification purposes.&FALSE&TRUE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.107&mcs&0&Y&You must resubmit a mortgage to Loan Prospector if the income for any borrower decreases, and/or an increase in monthly debts causes the total debt ratio to increase more than 3% from the previous transaction submitted, if the total debt ratio in the most recent transaction is greater than:&45%;&38%;50%;40%;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.108&mcs&0&Y&The risk classes for conventional/conforming mortgages evaluated by Loan Prospector are:&Accept and Caution&Accept, Refer and Caution;Accept Plus, Standard, Streamlined Accept and Caution;Approve Eligible, Refer Ineligible, Refer, Refer with Caution;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.109&mcs&0&Y&What component of Loan Prospector's feedback indicates if the risk profile of the proposed mortgage is acceptable to Freddie Mac?&Risk class;&Purchase eligibility;Documentation class;LP Key Number;&&&&a&lpfback.0&&&&&1&&&N.
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lcert190.110&mcs&0&Y&In Loan Prospector, the evaluation status �Invalid� indicates:&Information in specific data fields is incorrect or data is missing&Loan Prospector processed the transaction and returned a risk class;Loan Prospector is unable to acquire necessary credit data to perform the evaluation;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.111&mcs&0&Y&In Loan Prospector, the evaluation status �Ineligible� indicates:&Loan Prospector cannot evaluate the transaction and the mortgage must be manually underwritten and delivered as a Non-Loan Prospector mortgage&Information in specific data fields is invalid or data is missing;Loan Prospector is unable to acquire necessary credit data to perform the evaluation;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.112&mcs&0&Y&In Loan Prospector, the evaluation status �Incomplete� indicates:&Loan Prospector is unable to acquire necessary credit data to perform the evaluation and the mortgage must be manually underwritten and delivered as a Non-Loan Prospector mortgage& Loan Prospector processed the transaction and returned a risk class;Information in specific data fields is invalid or data is missing;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.113&mcs&0&Y&In Loan Prospector, the evaluation status �Complete� indicates: &Loan Prospector processed the transaction and returned a risk class&Loan Prospector cannot evaluate the transaction;Loan Prospector is unable to acquire necessary credit data to perform the evaluation;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.114&tf&0&Y&A �Transaction Number� is a number assigned to the mortgage at initial submission and changes with each resubmission.&TRUE&FALSE&&&&&lpfback.0&&&&&1&&&N.
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lcert190.115&tf&0&Y&The �LP Key Number� is a unique number assigned to a mortgage by Loan Prospector when the mortgage is first submitted to Loan Prospector and does not change upon resubmission.&TRUE&FALSE&&&&&lpfback.0&&&&&1&&&N.
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lcert190.116&tf&0&N&The Accept risk class indicates the lender is relieved of credit and ratio warranties.&TRUE&FALSE&&&&&lpfback.0&&&&
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lcert190.117&tf&0&Y&The Caution risk class indicates that the layering of risk is excessive and that acceptability with Freddie Mac standards is unlikely. The lender must analyze all risk factors present in the mortgage file.&TRUE&FALSE&&&&&lpfback.0&&&&&1&&&N.
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lcert190.118&mcs&0&Y&What is the conventional conforming documentation class for loans evaluated by Loan Prospector that uses stated income and stated debt?&Accept Plus&Streamlined Accept;Standard;Refer;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.119&mcs&0&Y&What is the conventional documentation class for mortgages evaluated by Loan Prospector that allows the lender to take advantage of fewer documentation requirements than traditionally underwritten mortgages?&Streamlined Accept&Standard;Refer;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.120&mcs&0&Y&What is the conventional documentation class for mortgages evaluated by Loan Prospector that represents higher-risk Accept mortgages, all Caution mortgages, all A-minus mortgages and all Non-Loan Prospector mortgages? &Standard&Accept Plus;Streamlined Accept;Refer;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.121&mcs&0&N&The Accept Plus documentation level allows the lender to base the lending decision on: &Stated income and debts&Stated income and debts, provided income source is �employed�;Stated income and debts, unless 100% commission;Stated income and debts, provided all mortgage debt is verified on the credit report;&&&&a&lpfback.0&&&&&1:v&&&N.
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lcert190.122&mcs&0&Y&You submit a mortgage to Loan Prospector but the credit repositories are down and cannot be accessed. What is the evaluation status indicated on the Feedback Certificate?&Incomplete;&Invalid;Ineligible;&&&&a&lpfback.0&&&&&1&&&N.
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lcert190.123&tf&0&Y&You submit a mortgage to Loan Prospector and the credit risk class is Accept, the documentation class is Accept Plus and the mortgage received a Purchase Restriction. You can deliver this mortgage to Freddie Mac. &FALSE&TRUE&&&&&lpfback.0&&&&&1&&&N.
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lcert190.124&mcs&0&Y&The correct risk classes for FHA and VA mortgages evaluated by Loan Prospector are Accept and Refer. The Accept risk class indicates:&FHA will endorse with reduced documentation;VA will guarantee with reduced documentation;The mortgage is not required to meet published FHA or VA, as applicable, credit and capacity guidelines;&&&&&a&lploan.0&&&&&1&&&N.
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lcert190.125&tf&0&Y&The correct credit risk classes for FHA loans evaluated by Loan Prospector are Accept and Refer. The Refer risk class indicates the application has risks that must be evaluated and requires full credit evaluation by your FHA Direct Endorsement underwriter.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.126&mcm&0&Y&What are the FHA and VA documentation classes for mortgages evaluated by Loan Prospector that allows the lender to reduce documentation requirements? (Select all that apply)&Accept;Refer;&Standard;Caution;&&&&a&lploan.0&&&&&1&&&N.
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lcert190.127&mcs&0&Y&What is the FHA and VA documentation class for mortgages evaluated by Loan Prospector that allows the lender to take advantage of fewer documentation requirements than traditionally underwritten mortgages?&Refer;&Accept;Standard;Caution;&&&&a&lploan.0&&&&&1&&&N.
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lcert190.128&mcs&0&N&Loan Prospector�s CHUMS ID number for FHA is:&ZFHA&LPOTI;FHLMC;FMAC;&&&&a&lploan.0&&&&&1:v&&&N.
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lcert190.129&tf&0&Y&FHA and VA Accept mortgages minimize the documentation you need to obtain from your borrowers because both documentation classes under this risk class have waivers for verifying income/employment, ratios, and assets for all loan types.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.130&tf&0&Y&On an FHA or VA mortgage evaluated through Loan Prospector, if the borrower�s credit report contains significant inaccurate information, you must reclassify the mortgage to a Refer and document accordingly.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.131&mcs&0&Y&For FHA and VA mortgages, an Accept risk class does not require the underwriter�s signature on the credit package unless: &The risk class is reclassified to a Refer due to significant inaccurate information on the Loan Prospector in-file credit reports;&The back ratio exceeds 40%;The mortgage program is 203K;The mortgage program is a VA ARM;&&&&a&lploan.0&&&&&1&&&N.
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lcert190.132&mcs&0&N&For an FHA mortgage, a DE underwriter is required to sign the 92900PUR, 92900WS or 92900A if the Loan Prospector evaluation is:&Refer only;&Refer and Accept;Accept only;;&&&&a&lploan.0&&&&&1&&&N.
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lcert190.133&mcs&0&N&A VA-approved automatic underwriter must sign the VA Form 6393, Loan Analysis if the Loan Prospector evaluation is:&Refer only;&Refer and Accept;Accept only;;&&&&a&lploan.0&&&&&1&&&N.
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lcert190.134&tf&0&Y&On an FHA and VA mortgage, the borrower�s liabilities increase from the most recent transaction in Loan Prospector. The lender needs to resubmit the mortgage to Loan Prospector?&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.135&mcm&0&Y&For Loan Prospector mortgages, Minimum Assessment Feedback (MAF) advises you of the required minimum level of appraisal or inspection, if any. Which of the following are examples of Loan Prospector appraisal/inspection options? (Select all that apply)&2070 exterior;2070 interior;2055 interior/exterior;&No-appraisal MAF;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.136&tf&0&N&A subject property street address is not required when the loan processing stage is pre-qualification.&TRUE&FALSE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.137&mcs&0&Y&Which condition(s) may cause you to ignore the MAF returned by LP?&The lender is aware of physical, functional or environmental issues with the subject property.;The MAF indicates a Form 2070 exterior inspection only and the appraiser is unable to view the property from the street;&The LP selected in-file credit report contains significantly inaccurate information;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.138&tf&0&Y&Assuming the original estimated value submitted to LP is $150,000 and the appraisal report provides a value of $165,000, the lender must resubmit the mortgage to LP. &TRUE&FALSE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.139&mcs&0&Y&Which of the following conditions could impact the MAF returned by LP at resubmission?&Data input incorrectly;Not enough property data in the market area;Purchase price or the borrower�s estimate of value is not supported by model information;&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.140&mcm&0&Y&Which of the following items is a component that Loan Prospector uses to determine MAF. (Select all that apply)&Loan Prospector�s Home Value models;Loan data;Loan Prospector's evaluation of risk profile;&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.141&mcs&0&Y&Select the processing point at which Loan Prospector would NOT return MAF on the Feedback Certificate.&Pre-qualification;&Processing;Underwriting;QC;Both QC and Pre-qualification;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.142&tf&0&Y&You may apply for or cancel the No-appraisal MAF option request on any submission.&TRUE&FALSE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.143&tf&0&Y&You do not need to supply Form 998, Operating Income Statement, if rental income from the subject property is not considered in qualifying the borrower. &TRUE&FALSE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.144&mcs&0&N&Which of the following collateral assessment options is considered to be the least comprehensive? &No-appraisal MAF&Form 2055 interior;Form 2055 exterior;Form 2070 exterior;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.145&mcs&0&Y&If the property is a manufactured home, you must use the following appraisal/inspection form:&2055 Interior, Form 70 or Form 465;&2070, 2055 or Form 70;Form 2055 only;Form 70 only;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.146&mcm&0&N&No-appraisal MAF is NOT available on the following property types: (Select all that apply)&Manufactured homes;Second home;Log or dome home;Condominium unit;&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.147&mcs&0&Y&No-appraisal MAF is available on the following mortgage types:&An Accept, purchase transaction having a total loan-to-value ratio of 80% or less, secured by a 1-unit primary residence;&A seasoned mortgage;A mortgage having the potential for negative amortization;An A-minus mortgage;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.148&mcm&0&N&For purchase transactions, the seller must maintain a signed copy of the Freddie Mac Form 1149, Notice about Appraisal of Your Property, or similar notice, in the mortgage file whenever you use: (Select all that apply)&No-appraisal MAF;Form 2070;&Form 2055;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.149&mcs&0&Y&To evidence that the mortgaged premises are acceptable for the transaction, each mortgage file must contain one of the following reports:&Any of the above, as required for that loan transaction;&A written appraisal report;A written inspection report;A print-out of the No-appraisal MAF;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.150&mcs&0&Y&The only appraisal/inspection form acceptable for a 1-unit investment property is a:&Form 70, URAR;&Form 2070;Form 2065;Form 2055;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.151&mcs&0&Y&Form 2055 with an interior and exterior inspection is designed to report the results of a limited appraisal process, as defined by USPAP and:&Provides for an abbreviated description of the subject property and immediate neighborhood as well as any indication of adverse or atypical conditions;Contains a section for reporting the results of only the sales comparison approach;May be used for Loan Prospector and Non-Loan Prospector mortgages (Non-LP loans may only use Form 2055 interior);&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.152&mcs&0&&Form 2070 is an appraiser-completed inspection report used in conjunction with Freddie Mac's Home Value models. Form 2070 may NOT be:&Used when the property is a manufactured home&Used for Loan Prospector mortgages;Completed with an interior inspection;Completed with an exterior-only inspection;&&&&a&lpmaf.0&&&&
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lcert190.153&mcs&0&Y&The lender may substitute Fannie Mae Form _____ when the Feedback Certificate specifies that a Form 2070 with an exterior-only inspection is required.&2075;&2055;2065;65;&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.154&mcm&0&Y&The appraiser must upgrade from a Form 2070 in the following instances: (Select all that apply)&When the appraiser is unable to view the subject property adequately from the street;When the condition and marketability factors section on Form 2070 indicates such an upgrade is required;When the appraiser observes any factor that may have an adverse effect on the marketability of the subject property, or its quality or condition appears unacceptable for that area to a typical purchaser;&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.155&tf&0&Y&For mortgages originated using a No-appraisal MAF, the seller is not responsible for the interior and exterior condition or marketability of the mortgaged premises. &FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.156&tf&0&Y&Once MAF is returned on the Feedback Certificate, the MAF will not change even if changes occur to the property address or value.&FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
|
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lcert190.157&tf&0&N&If you receive the feedback message that you may be eligible for the No-appraisal MAF, the mortgage is automatically eligible as a No-appraisal MAF with no additional steps.&FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
|
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lcert190.158&mcm&0&N&A mortgage is ineligible for the No-appraisal MAF if: (Select all that apply)&There is a home inspection report in the file that indicates the presence of adverse conditions and/or marketability factors;The lender is aware of contamination or hazardous substances in the neighborhood;The property is not complete as of closing;The mortgage transaction is a refinance;&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.159&tf&0&N&If the MAF indicates an exterior-only inspection is required, the lender may not upgrade to an interior and exterior inspection.&FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
|
||
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lcert190.160&tf&0&N&A change in the risk class upon resubmission will never affect the MAF.&FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
|
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lcert190.161&tf&0&N&Only conventional/conforming mortgages eligible for sale to Freddie Mac can be processed through Loan Prospector.&FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.162&tf&0&Y&Loan Prospector computes the total debt payments needed to calculate the monthly debt payment-to-income ratio by adding all the monthly payments identified on its three in-files.&FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
|
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lcert190.163&mcs&0&N&The maximum mortgage amount Loan Prospector can evaluate is:&$2,000,000;&$300,700;$1,000,000;$500,000;&&&&a&lpovw.0&&&&&1&&&N.
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lcert190.164&mcs&0&Y&The �Processing Ready� flag on the broker assignment screen is designed to:&Enable the wholesaler to run a report based on this edit to determine the number of mortgages ready for underwriting;&Assign the mortgage to the lender;Submit the mortgage to Loan Prospector;&&&&a&lpovw.0&&&&&1&&&N.
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lcert190.165&mcm&0&Y&Freddie Mac allows the lender to use the following types of credit reports to underwrite the mortgage: (Select all that apply)&In-file credit reports obtained through Loan Prospector or obtained outside of Loan Prospector;Merged/joint merged credit reports obtained through Loan Prospector or obtained outside of Loan Prospector;Residential Mortgage Credit Reports (RMCR) obtained outside of Loan Prospector;&&&&&a&lpovw.0&&&&&1&&&N.
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lcert190.166&mcs&0&Y&To evaluate a mortgage through LP, each borrower must have credit scores from how many credit repositories?&Two;&One;Three;None;&&&&a&lpovw.0&&&&&1&&&N.
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lcert190.167&mcs&0&N&All infile credit reports for an individual borrower must be dated within ___ days of each other.&14&3;10;30;&&&&a&lpovw.0&&&&&1:v&&&N.
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lcert190.168&mcs&0&Y&Where does Loan Prospector obtain the credit history information used to evaluate the mortgage?&In-file credit reports issued by a credit repository&Merged credit reports issued by a credit repository, consumer reporting agency or bureau;Merged credit reports obtained outside of Loan Prospector;An RMCR prepared by a consumer reporting agency;&&&&a&lpovw.0&&&&&1:v&&&N.
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lcert190.169&mcs&0&Y&Loan Prospector can evaluate mortgage amounts as low as:&$1,000;&$10,000;$20,000;$30,000;&&&&a&lpovw.0&&&&&1&&&N.
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lcert190.170&tf&0&Y&Only Freddie Mac approved sellers can submit mortgages to Loan Prospector.&FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.171&tf&0&Y&The LP Key Number is assigned to your specifc application number and may not be reused to process or originate another mortgage for the same borrower.&TRUE&FALSE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.172&tf&0&N&For FHA/VA mortgages, if the Seller determines the repository file used to create the borrower's credit report contains significant inaccurate credit information, the Seller must reclassify an Accept mortgage to a Refer mortgage.&TRUE&FALSE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.173&mcs&0&Y&The correct credit risk classes for Conventional loans evaluated by Loan Prospector are Accept and Caution. The Accept risk class indicates:&500&1;2;3;&&&&a&lpovw.0&&&&
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lcert190.174&mcs&0&Y&The correct credit risk classes for Conventional loans evaluated by Loan Prospector are Accept and Caution. The Caution risk class indicates:&500&1;2;3;&&&&a&lpovw.0&&&&
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lcert190.175&tf&0&Y&A mortgage that receives a purchase eligibility message, indicating the mortgage is eligible for A-minus, shows the Seller is relieved of the credit and ratio representations and warrants. &TRUE&FALSE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.176&tf&0&Y&If you are using a merged credit report from a local supplier, you must also review the LP infile credit reports?&FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.177&mcs&0&Y&A mortgage may be submitted to LP _____ times.&As required up to 16 times;&1 time;5 times;25 times;Unlimited;&&&&a&lpovw.0&&&&&1&&&N.
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lcert190.178&tf&0&Y&Changes in the borrower�s name and Social Security Number, or in the property address, do not need to be resubmitted to LP if the lender believes the changes are insignificant. &FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.179&tf&0&N&An Accept risk class means the borrower is creditworthy and the Seller is relieved of the credit and ratio representation and warranties, even if the mortgage file does not contain documentation required by the Feedback Certificate. &FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.180&tf&0&Y&You may use LP to evaluate any product or offering included in the Single Family Seller/Servicer Guide or in your Master Commitment.&FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.181&tf&0&Y&For both Caution and manually underwritten mortgages, when the borrower's monthly debt payment-to-income ratio is over 50%, Freddie Mac will assume the borrower does not have acceptable capacity unless the borrowers can document they have been carrying an equivalent debt payment-to-income ratio for at least one year while maintaining an acceptable credit reputation.&TRUE&FALSE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.182&mcs&0&Y&For conventional mortgages that receive Standard documentation through Loan Prospector, commissioned income should be documented with:&The most recent YTD pay stub, W2 forms covering the most recent two years and the most recent individual federal tax returns for the past two years&A verbal VOE or most recent pay stub;The most recent YTD pay stub, W2 forms covering the most recent tax year and the most recent individual federal tax return;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.183&mcs&0&Y&For conventional mortgages that receive Standard documentation through Loan Prospector, employed borrower income should be documented with:&The most recent YTD pay stub covering one full month of earnings, verbal VOE, and W2 forms covering the most recent two years&The most recent YTD pay stub covering one full month of earnings and a verbal VOE;The most recent YTD pay stub covering one full month of earnings and W2 forms covering the most recent tax year;A verbal verification only if the borrower has been on the job for over one year;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.184&mcs&0&N&When underwriting a Caution mortgage, which of the following scenarios describes extenuating circumstances?&A nonrecurring or isolated situation beyond the borrower�s control that rendered the borrower unable to pay debts&Recent pay-down of account balances;Numerous revolving accounts with high balances to limits ;Recurring missed payments on monthly obligations due to seasonal business demands creating temporary income shortages;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.185&mcm&0&Y&For Caution and manually underwritten mortgages, at least one borrower, whose income or assets are used for qualification, must have a minimum number of payment references comprised of: (Select all that apply)&Three tradelines;Four non-credit payment references, or a total of four tradelines and non-credit payment references established for a minimum of 12 months.;&One tradeline;Two tradelines;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.186&mcs&0&Y&For Caution and manually underwritten mortgages, when a bankruptcy is due to extenuating circumstances, the borrower must have reestablished an acceptable credit reputation for the most recent period ____ months.&24&12;36;48;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.187&mcs&0&N&For Caution and manually underwritten mortgages, when a Chapter 7 bankruptcy is due to financial mismanagement, the borrower must have reestablished an acceptable credit reputation for a period of ____ months.&48&12;24;36;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.188&tf&0&Y&To support the borrower's ability to carry total monthly debt greater than or equal to 50% when the risk class is Caution, the lender need only obtain a statement signed by the borrower in the mortgage file. &FALSE&TRUE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.189&tf&0&Y&The lender must determine on all Caution mortgages that the loan is eligible for sale to Freddie Mac.&FALSE&TRUE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.190&tf&0&Y&When reviewing Caution mortgages, you may use the selected score to determine if the borrower should be evaluated with a basic, comprehensive or cautious review.&TRUE&FALSE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.191&tf&0&Y&Whenever you deliver a loan to Freddie Mac that was evaluated by LP, you are required to deliver the LP Key Number.&TRUE&FALSE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.192&mcs&0&Y&The LP documentation class that will be returned at initial submission with a Caution risk class is:&Standard&Accept Plus;Streamlined Accept;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.193&tf&0&Y&A change in the risk class at resubmission will never affect the documentation class.&FALSE&TRUE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.194&mcs&0&Y&If there is a discrepancy between the information submitted to LP and the documentation in the mortgage file:&Discrepancies are acceptable as long as all discrepancies meet the constraints of the LP resubmission requirements&Freddie Mac will always honor the risk class and documentation class on the LP Feedback Certificate;The Seller must automatically repurchase the mortgage;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.195&mcs&0&Y&For Caution mortgages, if the credit report you are using does not contain a reference for a significant open debt listed on the application, you:&Must verify the payment history and consider the payment in the total obligations;&May ignore the payment history but must consider the payment in the total obligations;May ignore the payment history and the payment;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.196&mcs&0&Y&For all Caution mortgages, when building a case for a borrower who has significant adverse or derogatory credit due to financial mismanagement, what evidence must you use to prove the credit reputation is still acceptable?&The credit report and other documentation showing that all of the borrower�s credit is current;The borrower�s credit history does not contain multiple revolving accounts with high balance-to-limits or high overall utilization of revolving credit;Each borrower with significant adverse or derogatory credit information caused by financial mismanagement has a minimum underwriting score of 680;&The borrower has re-established an acceptable credit reputation for 12 months after discharge of a Chapter 13 bankruptcy;The housing/rental payment doesn�t increase by more than 20% over the existing payment;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.197&mcs&0&N&Each borrower with significant adverse or derogatory credit information caused by financial mismanagement must have a minimum underwriting score of:&680&620;600;640;None required for financial mismanagement;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.198&tf&0&N&An Alt 97 mortgage requires an offering identifier code to be submitted to LP for assessment.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.199&tf&0&N&The Freddie Mac 100 mortgage does not require an offering identifier code be included in the data submitted to LP for evaluation.&FALSE&TRUE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.200&tf&0&Y&Data errors in Loan Prospector may be indicated by a red "X" or an "invalid" evaluation status.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.201&tf&0&N&Documenting an explanation for derogatory credit is waived on an Accept mortgage.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.202&tf&0&N&Documenting rental verificaton/history for the most recent 12 months is waived on an Accept mortgage.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.203&tf&0&N&Business tax returns are not required for self-employed borrowers on conventional mortgages that receive a Streamlined Accept documentation class.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.204&tf&0&N&When documenting self-employed income with tax returns, the IRS Form 4506/8821 must always be signed at the time of application.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.205&tf&0&N&Resubmission of a mortgage to Loan Prospector is not required if the income for any borrower decreases, and the total difference does not change the total debt-to-income by more than 5%.&FALSE&TRUE&&&&&lpdoc.0&&&&&1&&&N.
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lcert190.206&tf&0&Y&The correct risk classes for FHA and VA mortgages evaluated by LP are Accept and Refer. The Accept risk class indicates that VA will guarantee with reduced documentation.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.207&tf&0&Y&The correct risk classes for FHA and VA mortgages evaluated by LP are Accept and Refer. The Accept risk class indicates that FHA will endorse with reduced documentation.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.208&tf&0&Y&The correct credit risk classes for VA loans evaluated by Loan Prospector are Accept and Refer. The Refer risk class indicates the application has risks that must be evaluated and requires full credit evaluation by your VA Automatic underwriter.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.209&tf&0&N&If the property is a manufactured home, you may use the Form 2070 if recommended by LP MAF.&FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.210&tf&0&N&The only appraisal/inspection form acceptable for a 1-unit investment property is a Form 2070.&FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.211&mcs&0&Y&The minimum number of data fields required for LP to evaluate a mortgage are: &45&75;100;25;&&&&a&lpdata.0&&&&&1:v&&&N.
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lcert190.212&mcs&0&N&What is the maximum seller contribution (financing concessions) allowable on a 95% LTV loan per Freddie Mac: &3%&6%;9%;0%;&&&&a&lpdoc.0&&&&&1&&&N.
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lcert190.213&tf&0&N&For loans delivered to Freddie Mac as A-minus mortgages, the lender is not required to determine the borrower�s willingness and ability to repay.&TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.214&mcs&0&N&When is the lender responsible for determining the type and percentage of MI coverage?&Always, whether the loan is assessed by Loan Prospector or manually underwritten&Never;Only when the loan is manually underwritten;Only when Loan Prospector returns a Caution risk class on the Feedback Certificate;&&&&a&lpprod.0&&&&&1:v&&&N.
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lcert190.215&tf&0&N&For Loan Prospector assessed mortgages, Freddie Mac will not require repurchase based on its review of credit, income, employment and asset documentation that exceeds the minimum requirements, even if the additional documentation may be viewed as unfavorable under traditional underwriting practices as long as there is no misrepresentation. &TRUE&FALSE&&&&&lpprod.0&&&&&1&&&N.
|
||
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lcert190.216&mcm&0&N&A Freddie Mac 100 mortgage: (Select all that apply)&Must be a fixed-rate, level payment purchase transaction or no cash-out refinance;Must be secured by a 1-unit primary residence;Must have an LTV ratio greater than 97% but not greater than 100%;&&&&&a&lpprod.0&&&&&1&&&N.
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lcert190.217&mcs&0&N&The maximum conventional conforming loan amount for a 1-unit property in 2004 is:&$333,700&$322,700;$252,700;$300,000;&&&&a&lpprod.0&&&&&1:v&&&N.
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lcert190.218&mcm&0&N&Which of the following data field(s) does Loan Prospector evaluate as a total? (Select all that apply)&Total Monthly Debt;Monthly Income ;Reserves;&&&&&a&lpdata.0&&&&&1&&&N.
|
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lcert190.219&mcs&0&N&Which of the following is required on a conventional loan receiving a Caution risk class and Standard documentation?&Verification of mortgage debt when the mortgage debt is not adequately shown on the credit reports&Proof of liquidation when the asset being sold is exchange traded;Explanation for employment gaps shorter than 60 days;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.220&mcs&0&N&For conventional mortgages, which case does NOT require resubmission to Loan Prospector?&The borrower�s income increases&The appraisal report indicates a different value from the original estimate of value;You correct a typo in the subject property address;The date on the infile credit report pulled by Loan Prospector is greater than 120 days;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.221&mcs&0&N&For conventional mortgages, when will Loan Prospector obtain new infile credit reports for ALL borrowers?&On a resubmission, if the infile credit data is more than 120 days old&On every resubmission of the loan;When you add a trade line to the loan application;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.222&mcs&0&N&Which of the following debts can you exclude from the total liabilities?&Payment for loans against a secured financial asset (i.e., stock, 401k, etc.)&Alimony or child support;Negative rent;Separate maintenance;Any debts listed on the application that do not appear on the credit report;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.223&mcs&0&N&There are three income classifications used by Freddie Mac: employed income, self-employed income and other income (non-employed). Employed income may be described as:&Base pay income reported on pay stubs or salary vouchers supported by W-2 earnings.&Other income sources such as from a pension, social security, dividends and interest and/or trust income;Income reported on federal income tax returns from self-employment when 25% or more ownership of the business is indicated;Income sources from alimony or child support;Income sources from rental property;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.224&mcs&0&N&There are three income classifications used by Freddie Mac: employed income, self-employed income and other income (non-employed). Self-employed income may be described as: &Income from a business in which the borrower has 25% or more ownership&Base pay income reported on pay stubs or salary vouchers supported by W-2 earnings;Other income sources such as from a pension, social security, dividends and interest and/or trust income;Income sources from alimony or child support;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.225&mcs&0&N&There are three income classifications used by Freddie Mac: employed income, self-employed income and other income (non-employed). Other income may be described as:&Other income sources like a pension, social security, dividends and interest and/or trust income, alimony and child support, and rental property income&Base pay income reported on pay stubs or salary vouchers supported by W-2 earnings.;Income reported on federal income tax returns from self-employment when 25% or more ownership of the business is indicated;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.226&mcs&0&N&On all loans, the borrower's alimony, child support and/or separate maintenance income must be documented with selected pages from the divorce decree and proof of receipt for the most recent:&3 months&24 months;12 months;6 months;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.227&mcm&0&N&A 12-month housing payment history is required if a mortgage(s) does NOT appear on the credit report or if the credit report does NOT contain a current 12-month mortgage history on loans assessed by Loan Prospector that receive a: (Select all that apply)&Caution risk class;A-minus eligibility;&Accept risk class;All loans require verification of mortgage;&&&&a&lpdoc.0&&&&&1&&&N.
|
||
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lcert190.228&mcs&0&N&For conventional mortgages that receive an Accept Plus documentation class through Loan Prospector:&The lender is required to document only the primary (largest) source of income that is expected to continue for the next three years, unless the self-employed income is more than 25% of the total stated income&The lender is not required to document income because stated income is used to qualify;The lender must document all income with a verbal VOE, or most recent pay stub or written VOE;The lender must document all income with a verbal VOE only;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.229&tf&0&N&For conventional mortgages that receive an Accept Plus documentation level, the lender must use the documented income to qualify if it is less than the stated income.&FALSE&TRUE&&&&&lpdoc.0&&&&&1&&&N.
|
||
|
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lcert190.230&mcm&0&N&Which documentation level requires you to verify proceeds from the sale of an asset (other than real property or exchange traded securities) with a bill of sale and proof of receipt, or document the existence, ownership and value of the asset through a third party, and a letter of intent or contract? (Select all that apply)&Accept Plus;Streamlined Accept;Standard;&&&&&a&lpdoc.0&&&&&1&&&N.
|
||
|
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lcert190.231&tf&0&N&For mortgages that receive an Accept risk class, you are not required to document a bankruptcy with a credit explanation, bankruptcy filing, and list of creditors or copy of the discharge.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
|
||
|
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lcert190.232&mcm&0&N&When the credit report reflects a contingent mortgage debt due to divorce, what documentation is required in order to exclude this debt from the borrower�s total liabilities? (Select all that apply)&Document the �transfer of title� with a copy of the appropriate legal document;Provide a copy of the appropriate legal document indicating the ex-spouse is required to make the payments.;Canceled checks for the most recent 12 months showing the ex-spouse is actually making the payments;&&&&&a&lpdoc.0&&&&&1&&&N.
|
||
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lcert190.233&tf&0&N&The borrower has decided to change the mortgage from a 15-year to a 30-year term. In this case, the lender needs to resubmit the mortgage to Loan Prospector.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
|
||
|
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lcert190.234&tf&0&N&The borrower informs the lender that the previous contract fell through on the home he planned to buy, so he put the current contract on the home down the street for the same price. He is closing on the new mortgage the next day and it received an Accept risk class through Loan Prospector. The lender needs to resubmit the mortgage to Loan Prospector.&TRUE&FALSE&&&&&lpdoc.0&&&&&1&&&N.
|
||
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lcert190.235&mcs&0&N&The lender submitted a mortgage to Loan Prospector with $18,000 in reserves, but the bank statement shows the borrower will only have $15,000 in reserves. Why does the lender need to resubmit the mortgage to Loan Prospector?&The amount of verified reserves decreased by more than 10%&Any decrease in reserves requires resubmission;The reserves amount exceeded $10,000;&&&&a&lpdoc.0&&&&&1:v&&&N.
|
||
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lcert190.236&tf&0&N&The borrower is purchasing an investment property. He is short of funds to close and wants to obtain a gift from a relative. This is an acceptable source of funds for this transaction.&FALSE&TRUE&&&&&lpdoc.0&&&&&1&&&N.
|
||
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lcert190.237&mcs&0&N&The risk classes for conventional/conforming mortgages assessed by Loan Prospector are:&Accept and Caution&Accept, Refer and Caution;Accept Plus, Standard, Streamlined Accept and Caution;Approve Eligible, Refer Ineligible, Refer, Refer with Caution;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
|
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lcert190.238&mcs&0&N&In Loan Prospector, the AUS status �Invalid� indicates:&Information in specific data fields is incorrect or data is missing&Loan Prospector processed the transaction and returned a risk class;Loan Prospector is unable to acquire necessary credit data to perform the evaluation;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
|
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lcert190.239&mcs&0&N&In Loan Prospector, the AUS status �Ineligible� indicates:&The assessment request is ineligible for Loan Prospector AUS processing&Information in specific data fields is invalid or data is missing;Loan Prospector is unable to acquire necessary credit data to perform the evaluation;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
|
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lcert190.240&mcs&0&N&In Loan Prospector, the AUS status �Incomplete� indicates:&Loan Prospector is unable to acquire necessary credit data to perform the assessment& Loan Prospector processed the transaction and returned a risk class;Information in specific data fields is invalid or data is missing;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
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lcert190.241&mcs&0&N&In Loan Prospector, the AUS status �Complete� indicates: &Loan Prospector processed the transaction and returned a risk class&Loan Prospector cannot evaluate the transaction;Loan Prospector is unable to acquire necessary credit data to perform the evaluation;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
|
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lcert190.242&tf&0&N&An �AUS Transaction Number� is a number assigned to the mortgage at initial submission and changes with each resubmission.&TRUE&FALSE&&&&&lpfback.0&&&&&1&&&N.
|
||
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lcert190.243&tf&0&N&The �LP AUS Key� is a unique number assigned to a mortgage by Loan Prospector when the mortgage is first submitted to Loan Prospector and does not change upon resubmission.&TRUE&FALSE&&&&&lpfback.0&&&&&1&&&N.
|
||
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lcert190.244&tf&0&N&The Caution risk class indicates that the layering of risk is excessive and that acceptability with Freddie Mac requirements is unlikely. The lender must analyze all risk factors present in the mortgage file.&TRUE&FALSE&&&&&lpfback.0&&&&&1&&&N.
|
||
|
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lcert190.245&mcs&0&N&What is the conventional/conforming documentation level for loans assessed by Loan Prospector that uses stated income and stated debt?&Accept Plus&Streamlined Accept;Standard;Refer;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
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lcert190.246&mcs&0&N&What is the conventional documentation level for mortgages assessed by Loan Prospector that allows the lender to take advantage of fewer documentation requirements than traditionally underwritten mortgages?&Streamlined Accept&Standard;Refer;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
|
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lcert190.247&mcs&0&N&What is the conventional documentation level for mortgages assessed by Loan Prospector that represents higher-risk Accept mortgages, all Caution mortgages, all A-minus mortgages and all Non-Loan Prospector mortgages? &Standard&Accept Plus;Streamlined Accept;Refer;&&&&a&lpfback.0&&&&&1:v&&&N.
|
||
|
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lcert190.248&tf&0&N&The credit risk classes for FHA loans assessed through Loan Prospector are Accept and Refer. The Refer risk class indicates an identified weakness in the borrower's credit reputation and/or capacity that requires further assessment by an FHA Direct Endorsement underwriter.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
|
||
|
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lcert190.249&mcm&0&N&What are the FHA and VA documentation levels for mortgages assessed through Loan Prospector that allows the lender to reduce documentation requirements? (Select all that apply)&Accept;Refer;&Standard;Caution;&&&&a&lploan.0&&&&&1&&&N.
|
||
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lcert190.250&tf&0&N&On an FHA or VA mortgage assessed through Loan Prospector, if the borrower�s credit report contains significant inaccurate information, you must reclassify the mortgage to a Refer and document accordingly.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
|
||
|
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lcert190.251&tf&0&N&On an FHA and VA mortgage, the borrower�s liabilities increase from the most recent transaction in Loan Prospector. The lender needs to resubmit the mortgage to Loan Prospector.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
|
||
|
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lcert190.252&mcm&0&N&For Loan Prospector mortgages, Minimum Assessment Feedback (MAF) advises you of the required minimum level of appraisal or inspection, if any. Which of the following are examples of Loan Prospector appraisal/inspection options? (Select all that apply)&2070 exterior;2070 interior;2055 interior/exterior;No-appraisal MAF;&&&&&a&lpmaf.0&&&&&1&&&N.
|
||
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lcert190.253&tf&0&N&The original estimated value submitted to LP is $150,000 and the appraisal report provides a value of $165,000. The lender must resubmit the mortgage to LP. &TRUE&FALSE&&&&&lpmaf.0&&&&&1&&&N.
|
||
|
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lcert190.254&mcm&0&N&Which of the following items is a component that Loan Prospector uses to determine MAF. (Select all that apply)&Loan Prospector�s Home Value models;Loan data;Loan Prospector's assessment of risk profile;&&&&&a&lpmaf.0&&&&&1&&&N.
|
||
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lcert190.255&tf&0&N&You may apply for or cancel the No-appraisal MAF option request on any submission to Loan Prospector, except "prequalification".&TRUE&FALSE&&&&&lpmaf.0&&&&&1&&&N.
|
||
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lcert190.256&mcm&0&Y&The appraiser must upgrade from a Form 2070 in the following instances: (Select all that apply)&When the appraiser is unable to view the subject property adequately from the street;When the condition and marketability factors section on Form 2070 indicates such an upgrade is required;When the appraiser observes any factor that may have an adverse effect on the marketability of the subject property, or its quality or condition appears unacceptable for that area to a typical purchaser;&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.257&tf&0&N&Once MAF is returned on the Feedback Certificate, the MAF will not change upon resubmission even if changes occur to the property address or value.&FALSE&TRUE&&&&&lpmaf.0&&&&&1&&&N.
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lcert190.258&tf&0&N&For conventional loans, Loan Prospector computes the total debt payments needed to calculate the monthly debt payment-to-income ratio by adding all the monthly payments identified on the infiles obtained.&FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.259&mcm&0&N&Freddie Mac allows the lender to use the following types of credit reports to assess the mortgage: (Select all that apply)&Infiles obtained through Loan Prospector or obtained outside of Loan Prospector;Merged/joint merged credit reports obtained through Loan Prospector or obtained outside of Loan Prospector;Residential Mortgage Credit Reports (RMCR) obtained outside of Loan Prospector;&&&&&a&lpovw.0&&&&&1&&&N.
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lcert190.260&mcs&0&N&For conventional mortgages, where does Loan Prospector obtain the credit history information used to assess the mortgage?&Infiles issued by a credit repository&Merged credit reports issued by a credit repository, consumer reporting agency or bureau;Merged credit reports obtained outside of Loan Prospector;An RMCR prepared by a consumer reporting agency;&&&&a&lpovw.0&&&&&1:v&&&N.
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lcert190.261&tf&0&N&The LP AUS Key is assigned to your specifc application number and may not be reused to process or originate another mortgage for the same borrower.&TRUE&FALSE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.262&tf&0&N&If you are using a merged credit report from a local supplier, you must also review the in-files obtained through Loan Prospector.&FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.263&tf&0&N&Changes to the borrower�s name, Social Security Number, or property address do not need to be resubmitted to Loan Prospector if the lender believes the changes are insignificant. &FALSE&TRUE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.264&tf&0&N&For both Caution and manually underwritten mortgages, when the borrower's monthly debt payment-to-income ratio is over 50%, Freddie Mac will assume the borrower does not have acceptable capacity unless the borrower can document they have been carrying an equivalent debt payment-to-income ratio for at least one year while maintaining an acceptable credit reputation.&TRUE&FALSE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.265&mcs&0&N&For conventional mortgages that receive Standard documentation through Loan Prospector, commissioned income should be documented with:&The most recent YTD pay stub, W-2 forms covering the most recent two years, the individual federal tax returns for the most recent two years and a verbal VOE&A verbal VOE or most recent pay stub;The most recent YTD pay stub, W-2 forms covering the most recent tax year and the most recent individual federal tax return;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.266&mcs&0&N&For conventional mortgages that receive Standard documentation through Loan Prospector, employed borrower income should be documented with:&The most recent YTD pay stub covering one full month of earnings, verbal VOE, and W-2 forms covering the most recent two years&The most recent YTD pay stub covering one full month of earnings and a verbal VOE;The most recent YTD pay stub covering one full month of earnings and W-2 forms covering the most recent tax year;A verbal verification only if the borrower has been on the job for over one year;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.267&mcm&0&Y&For Caution and manually underwritten mortgages, at least one borrower, whose income or assets are used for qualification, must have a minimum number of payment references comprised of: (Select all that apply)&Three tradelines;Four non-credit payment references, or a total of four tradelines and non-credit payment references established for a minimum of 12 months.;&One tradeline;Two tradelines;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.268&mcs&0&N&For Caution and manually underwritten mortgages, when a bankruptcy is due to extenuating circumstances, the borrower must have reestablished an acceptable credit reputation for the most recent ____ month period.&24&12;36;48;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.269&tf&0&N&To support the borrower's ability to carry total monthly debt greater than or equal to 50% when the risk class is Caution, the lender needs only to obtain a statement signed by the borrower in the mortgage file. &FALSE&TRUE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.270&tf&0&N&For any Caution mortgage that is not eligible for A-Minus, the lender must determine that the loan is eligible for sale to Freddie Mac.&TRUE&FALSE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.271&tf&0&N&When reviewing Caution mortgages, you may use the underwriting score to determine if the borrower should be assessed with a basic, comprehensive or cautious review.&TRUE&FALSE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.272&tf&0&N&Whenever you deliver a loan to Freddie Mac that was evaluated by Loan Prospector, you are required to deliver the LP AUS Key.&TRUE&FALSE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.273&mcs&0&N&If the first submission to Loan Prospector provides a Caution risk class, the Loan Prospector documentation level will be:&Standard&Accept Plus;Streamlined Accept;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.274&tf&0&Y&A change in the risk class after a resubmission will never affect the documentation class.&FALSE&TRUE&&&&&lpcaut.0&&&&&1&&&N.
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lcert190.275&mcs&0&N&If there is a discrepancy between the information submitted to Loan Prospector and the documentation in the mortgage file:&Discrepancies are acceptable, as long as all discrepancies meet the constraints of the Loan Prospector resubmission requirements&Freddie Mac will always honor the risk class and documentation level on the Loan Prospector Feedback Certificate;The Seller must automatically repurchase the mortgage;&&&&a&lpcaut.0&&&&&1:v&&&N.
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lcert190.276&tf&0&N&Data errors in Loan Prospector may be indicated by a red "X" appearing next to the data field, or an "invalid" AUS status.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.277&tf&0&N&The risk classes for VA mortgages assessed by Loan Prospector are Accept and Refer. The Accept risk class indicates that VA will guarantee with reduced documentation.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.278&tf&0&N&The risk classes for FHA mortgages assessed through Loan Prospector are Accept and Refer. The Accept risk class indicates that FHA will endorse with reduced documentation.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.279&tf&0&N&The credit risk classes for VA loans assessed by Loan Prospector are Accept and Refer. The Refer risk class indicates the application has risks that must be evaluated and requires full credit evaluation by your VA Automatic underwriter.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.280&mcs&0&N&The minimum number of data fields required for Loan Prospector to assess a mortgage is approximately: &45&75;100;25;&&&&a&lpdata.0&&&&&1:v&&&N.
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lcert190.281&mcm&0&N&The appraiser must upgrade from a Form 2070 in the following instances: (Select all that apply)&When the appraiser is unable to view the property adequately from the street;When the condition and marketability factors on Form 2070 indicates such an upgrade is required;When the appraiser observes any factor that may have an adverse effect on the marketability of the subject property, or its quality or condition appears unacceptable for that area to the typical appraiser;When the appraiser identifies the subject property as Manufactured Housing;&&&&&a&lpmaf.0&&&&&1&&&N.
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lcert190.282&mcm&0&N&For Caution and manually underwritten mortgages, at least on borrower, whose income or assets are used for qualification, must have a minimum number of payment references comprised of: (Select all that apply)&Three tradelines;Four non-credit payment references;A total of four tradelines and non-credit payment references established for a minimum of 12 months;&One tradeline;Two tradelines;&&&&a&lpcaut.0&&&&&1&&&N.
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lcert190.283&tf&0&N&An Initial Interest mortgage requires an offering identifier code when submitted to Loan Prospector for assessment.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.284&tf&0&N&For manufactured homes, you must enter either a "Single-wide" or "Multi-wide" property type when submitting to Loan Prospector for an assessment.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.285&tf&0&&When submitting a loan to FHA TOTAL Scorecard for the first time, you must select "Merged credit" prior to submission.&TRUE&FALSE&&&&&lploan.0&&&&&1&&&N.
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lcert190.286&mcs&0&N&For FHA mortgages, where does Loan Prospector obtain the credit history information used to assess the mortgage?&Merged credit reports obtained through Loan Prospector&Infiles issued by a credit repository;An RMCR prepared by a consumer reporting agency;&&&&x&lploan.0&&&&&1:v&&&N.
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lcert190.287&tf&0&N&For conventional loans, the Accept risk class indicates that based upon analysis of the credit and other data submitted, the mortgage is eligible for sale to Freddie Mac with reduced documentation and relief from representation and warranties for credit and ratios, as long as the mortgage is eligible for purchase under your, or your Seller's, Master Agreement and/or Master Commitment and all data in the final Loan Prospector submission is true, complete and accurate.&TRUE&FALSE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.288&tf&0&N&For conventional loans, the risk class of Caution indicates the application has serious risks that you (or the Seller) must evaluate in accordance with the Seller/Servicer Guide to determine if the loan qualifies for sale to Freddie Mac. Acceptable quality is unlikely.&TRUE&FALSE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.289&tf&0&&A purchase eligibility message of "500 Freddie Mac Eligible. LP A-Minus Offering" indicates the mortgage is automatically eligible for sale to Freddie Mac, with waivers of credit and ratio representations and warranties.&FALSE&TRUE&&&&&lpprod.0&&&&&1&&&N.
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lcert190.290&mcs&0&N&This type of assignment allows the selected wholesaler to view the loan data and results, including the credit data, but the originator maintains the ability to modify and/or resubmit loan data&Initial Assignment&Final Assignment;MSP Assignment;&&&&x&lpdata.0&&&&&1:v&&&N.
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lcert190.291&mcs&0&N&This type of assignment transfers the ability to modify and resubmit data to the selected wholesaler or wholesaler/MSP pair. When this assignment is selected, the originating broker or lender may view the loan data and results, but cannot modify the loan data or resubmit the loan application.&Final Assignment&Initial Assignment;MSP Assignment;&&&&x&lpdata.0&&&&&1:v&&&N.
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lcert190.292&tf&0&&With a Modify Release, the loan can only be assigned back to the releasing wholesaler or wholesaler/MSP pair.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.293&tf&0&N&With Full Release, all access (view and modify) to loan data and results is released to the originating broker or lender.&TRUE&FALSE&&&&&lpdata.0&&&&&1&&&N.
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lcert190.294&tf&0&Y&This is a test question&TRUE&FALSE&&&&&lpovw.0&&&&&1&&&N.
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lcert190.295&mcs&0&Y&This is a multiple choice test question&1 good answer&2 wrong answer;3 incredibly wrong answer;&&&&x&lpovw.0&&&&&1:v&&&N.
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