Credit Reports

Question 1

What is CRA

Answer 1

Credit reporting agency supply credit reports

Question 2

What is In file credit report

Answer 2

report from one credit agency

Question 3

What is tri merged credit report

Answer 3

all 3 agencies on one report

Question 4

What is 3rd type of credit report

Answer 4

factual data report

Question 5

All of the following would be found in a credit report except?
a.) Judgments
b.) Collections
c.) foreclosures
d.) utility records

Answer 5

D.

Question 6

How long do public records show on a credit report

Answer 6

7 years

Question 7

How long does chapter 7 bankruptcy stay on credit report

Answer 7

10 years

Question 8

What is chapter 7 bankruptcy

Answer 8

personal - wipes out all debts

Question 9

What is chapter 13 bankruptcy

Answer 9

personal pay back creditors through court

Question 10

What is chapter 11 bankruptcy

Answer 10

Business bankruptcy

Question 11

How long does chapter 13 stay on report

Answer 11

7 years

Question 12

How long does chapter 11 Bankruptcy stay on a credit report
.A. 7 years
B. 10 years
C. Chapter 11 is not reported on all credit reports
D. Until it is discharged

Answer 12

C.

Question 13

What is the credit score range?

Answer 13

300 -850

Question 14

What is the purpose of credit score

Answer 14

Predicts whether or not the borrower will default based on past history

Question 15

All of the following documents would show the Name of Company and MLO’s NMLS number except
A. Credit Report
B. Loan estimate
26
C. 1003
D. Closing disclosure

Answer 15

A.

Question 16

What is VOE

Answer 16

Verficiation of employment

Question 17

What is VOR

Answer 17

Verification of rent

Question 18

What is VOM

Answer 18

Verification of mortgage
- payoffs not provided on form

Question 19

What is VOD

Answer 19

Verification OF deposit

Question 20

What is VOG

Answer 20

Verification of gift

Question 21

What is VVOE

Answer 21

Verbal verification of employment

Question 22

3 things to tell client when meeting them

Answer 22

dont quit job, do not buy anything and continue to make your monthly payments

Question 23

You can’t count these items as income unless they meet guidelines

Answer 23

1. parttime/overtime/bonuses/self employment / rental income - 2 years

Question 24

Does a raise count as income

Answer 24

Yes if it is given prior to a loan closing

Question 25

Which of the following types of income cannot be used or is reason to decline an applicant for a mortgage?
A. Annuity
B Part time income last 24 months
C. Social security and or public income source
D. Intermittent or seasonal income

Answer 25

D.

Question 26

What is child support and alimony counted as?

Answer 26

Debt

Question 27

A borrower who is employed as a waiter applied for a mortgage loan. He told the MLO that he did not report all his tip income on his tax return. What step should the MLO take?
a.) Contact the employer to verify the tip income
b.) Tell the borrower to re-do his taxes correctly
c.) If sufficient use the income on the tax return
d.) Use the tip income anyway

Answer 27

C.

Question 28

How much in % does rental income count as income

Answer 28

75%

Question 29

How much does fixed income count?

Answer 29

Gross up to 125%

Question 30

What is needed to prove business income?

Answer 30

25%

Question 31

How do you calculate income

Answer 31

Calculated to monthly amt to determine ratio
ex: Hourly wage x # of hours x 52 weeks / 12 months = Monthly Income
Bi - Weekly : Amount per pay period x 26 / 12 = Monthly Income
Bi Monthly: (1st and the 15th) pay per period x 2 = Monthly Income