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CRU Final Exam Study Questions And 100% Correct Answers Latest Update
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CRU Final Exam Study Questions And 100% CorrectAnswers Latest Update
Which of the following is an unacceptable appraisal practice? Answer From data
provided by a person who has an interest in the selling of the property; in subjective
wording; without physically viewing the exterior of comparable sales
Select all of those that are appropriate. To create a mortgage to be sold to Fannie Mae
or Freddie Mac, the lender would have to determine: Answer Acceptable credit history;
acceptable collateral; ability
Which of the following underwriting components would this question correspond to?
"Will the borrower make the payments if the loan is approved?" - Credit
Which of the following is the most appropriate way to verify how long child support has
been received? - Request at least six months' history of receipt and: - Answer A copy of
a legal agreement showing payment, amount, and length of time to be paid
Select all that apply. Which of the following would be considered subjective phrases? -
Answer
What is not included in the appraisal report? - Answer The Narrative on crime within the
neighborhood
If a borrower wants to pay down the balance of a credit card in order to qualify, the
underwriter should continue to use the monthly card payment in the DTI ratio. - Answer
True
The current acceptable industry range for debt-to-income (DTI) ratios is: Answer
36-43%
,Select all that apply. Which of the following are ability-to-repay (ATR) requirements? -
Answer Loan term not exceeding 30 years; regular periodic payments that are
substantially equal and o not result in an increase in the principal balance or allow
deferment of repayment of principal; total points and fees do not exceed 3% of total loan
amount
appraisal When choosing comparables for a subject home, the appraiser should look
first to: - Answer Houses that have sold in the immediate neighborhood and have closed
within a recent time frame
If a borrower claims unreimbursed business expenses, the underwriter should: - Answer
Only deduct the expenses if commission income exceeds 25% of total income
If a borrower has less than 24 months but not less than 12 months of overtime income,
the income can be used to qualify the borrower if it can be documented that the income
is: - Answer Likely to continue
Select all that apply. Why is it important to understand the frequency in which variable
income is received? - Answer To prove history of receipt; so the frequency can be used
to look at the trend of the income; so you an property calculate qualifying income
NOT: TO IDENTIFY FRAUDULENT TRANSACTIONS
What does the acronym UMDP stand for? - Answer Uniform Mortgage Data Program
AUS systems, such as Desktop Underwriter and Loan Product Advisor, do NOT take into
consideration primary risk factors in their evaluation of a loan. -Answer False
Which of the following transactions carries the greatest amount of risk for the lender?
-Answer Subordinate financing
,Can a borrower who frequently changes jobs have stable income? -Answer Yes, so long
as the borrower's income has proven consistent
A borrower is purchasing an income property that has existing long-term leases that will
be conveyed with the sale. Because the borrower did not own the subject income
property during the prior tax year, the underwriter should take the rent of the current
leases and multiply by: Answer 75%
Which of the following type of business ownership does the owner have to report the
income of the business on a schedule in his personal tax returns? - Answer Sole
proprietorship
Which of the following ways may minimum liquid reserve requirements vary? - Answer
Occupancy status; LTV ratio; investor requirements
Second homes are those properties that - Answer Must be suitable for year-round
occupancy
Why should one be cautious using secondary income to qualify borrowers? - Answer
Secondary income may not be sustainable.
If the credit report contains a number of recent inquiries, the underwriter should: -
Answer Request a letter from the creditor or borrower to verify no additional credit was
obtained
True or False: Utility payments are included in the monthly housing payment when
calculating ratios - Answer False
Which of the following pays maintenance to common areas of a condominium? - Answer
HOA
Assume the comparable property has some feature that is better than the
corresponding feature of the subject property. What type of adjustment to value should
, occur? - Answer Negative adjustment
Which of the following is NOT part of the definition of market value as used for Fannie
Mae and Freddie Mac? Answer Property need not be listed on the open market.
Choose the best answer. Must the lender provide a copy of the appraisal to the
borrower under the Appraiser Independence Requirements? - Answer Yes, at no
additional cost and no less than three days prior to closing
Projected bonus for the current year can be considered in qualifying if borrower has 11
months history of receiving bonuses. - Answer False
If the transaction is a refinance, what amount is placed in line "a" (Purchase Price) of
the Details of Transaction section of the loan application? - Answer
Check all that apply. When a bankruptcy has been discharged, it: - Answer
What document is used to verify cash on deposit in a financial institution? - Answer VOD
The presence of more than one sale of the subject property within the past 12 months
may indicate the following: A flip sale scheme
The eligibility requirements are the same for any investor, and they do not change over
time. - False
Which of the following is ARE part of the definition of market value as used for Fannie
Mae and Freddie Mac? - Answer The probable price, as of a specific date, which a
property should bring in a competitive and open market under all conditions to a fair
scale, assuming price is not affected by undue stimulus
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