General Lending

Question 1

What is the default closing time?

Answer 1

9:00am

Question 2

What is ALWAYS the answer to “is early wire required?”

Answer 2

Yes

Question 3

What do you put for first payment?

Answer 3

First day of the month following closing or within 45 days after closing.

Question 4

What is a great resource for loan procedures?

Answer 4

Intranet —> Loan Submission Procedures

Question 5

What are the two places you can pull a KROLL report?

Answer 5

Platform or KROLL Website (www.factualdata.com)

Question 6

What is a term sheet?

Answer 6

A non binding letter of intent

Question 7

If a loan is below the loan amount for a jumbo what is it considered?

Answer 7

Conforming

Question 8

What must be documented when calling on maturing or past due loans?

Answer 8

Must log conversation notes

Question 9

Right to Cure for loans gives customer _________ days to make payment before action by the bank is taken.

Answer 9

20

Question 10

Where can you look for more information regarding credit reports and alerts on them?

Answer 10

Procedures and Manuals —> Accounts —> Transunion Guides

Question 11

For bridge loans what should be included in the “loan purpose comments” section?

Answer 11

Whether the loan will be followed by permanent financing.

Question 12

On a FIRM5 and FIRM7 what must be done in regards to interest rates?

Answer 12

They must be adjusted to the fully indexed rate

Question 13

How are fully indexed rates obtained?

Answer 13

By taking the 1 yr CMT and adding it to the current set margin.

Question 14

Where are margins and FIRM5 and 7 rate adjustments found?

Answer 14

Intranet—> Investment Property Mortgages Excel Sheet

Question 15

What must we do with a FIRM 5 OR FIRM7 rate when underwriting?

Answer 15

Calculate the fully indexed rate

Question 16

How is a fully indexed rate calculated?

Answer 16

Adding the 1 year CMT and Current Margin

Question 17

What is the 1 year CMT?

Answer 17

The current 10 year treasury bill

Question 18

Where can you find the current margin?

Answer 18

Investment property mortgages excel sheet on the intranet

Question 19

How much can interest rate increase the first year after a FIRM5 moves to variable?

Answer 19

2%

Question 20

How much can an interest rate increase the first year after moving to variable in a FIRM7?

Answer 20

3%

Question 21

How much can an interest rate increase over the life of the loan on a FIRM5 or FIRM7?

Answer 21

5%

Question 22

What is the cost for a modification?

Answer 22

1% of current loan amount

Question 23

What is the doc prep fee on a modification?

Answer 23

$200

Question 24

What is an interest long term rate?

Answer 24

10 year T Bill

Question 25

What is a short term interest rate?

Answer 25

Prime

Question 26

What is different between the APR and the Stated Rate on loan docs?

Answer 26

APR is ‘wholeistic’ while stated rate is just the rate. This means APR includes all fees throughout the loan. This gives an ‘actual’ payment feel.