Exam (elaborations)
Chapter 12: Mortgage Brokerage questions with correct answers
- Course
- Institution
Chapter 12: Mortgage Brokerage questions with correct answers
[Show more]
Content preview
Chapter 12: Mortgage BrokerageMortgage Broker - correct answer ✔✔An individual who acts as an intermediary between lenders and
borrowers for a fee.
Fee Agreement - correct answer ✔✔A compensation agreement that a borrower will enter into with a
mortgage broker.
Preapplication - correct answer ✔✔The process of preapproval of the borrower.
Mortgage Bankers - correct answer ✔✔Companies that are licensed to make real estate loans that are
sold to investors.
Mortgage Commitment - correct answer ✔✔The process in which a lender issues a loan commitment
letter to the borrower to demonstrate willingness to fund the loan.
Nonconforming Loans - correct answer ✔✔Any loan that does not conform to or meet the requirements
for purchase on the secondary market by either Fannie Mae or Freddie Mac.
Pre approval Loan - correct answer ✔✔A pending loan in which all of the underlying documents are in
file and there is a strong probability that there are no credit or income issues stopping the loan from
closing.
Prequalification - correct answer ✔✔Refers to a pending loan in which a mortgage broker believes that,
based on a preliminary interview and a credit report, the borrower will probably (subject to verification)
be able to meet the loan requirements of a lender - assuming the borrower is telling the truth about his
or her financial situation and income status.
Underwriting - correct answer ✔✔The process by which a lender evaluates a prospective borrower's
application through verification of employment and financial information and analysis of credit and
appraisal reports.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Sakayobako30. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72964 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
