Term
| 4Cs of Basic Qualification. |
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Definition
| Character, Capacity, Capital, Capability |
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Term
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Definition
| Installment, Revolving, Open Acount |
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Term
| Which score do Loan agents use when determining eligibility? |
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Definition
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Term
| What % of the balance is used if a revolving payment does not have a monthly payment? |
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Definition
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Term
| When do we exclude a co-signed debt? |
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Definition
1. all of the past 12 payments were paid on time by a co-signer
2. prove that 12 payments by the borrower were paid on time. |
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Term
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Definition
| 1 - rent, 2 - medical, 3 - load department |
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Term
| A pay stub must be dated within x days of the application date and expires after x days |
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Definition
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Term
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Definition
| employment, self-employment, non-employment |
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Term
| Commission % required in income for GMAC to require tax returns. |
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Definition
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Term
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Definition
| a form that gives permission to obtain tax forms/transcripts from the borrower. |
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Term
| Do we include a car lease with only 5 payments left? |
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Definition
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Term
| When do we include student loans in liabilities? |
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Definition
| When they are deferred for less than 36 months |
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Term
| Do we include 401ks in liabilities? |
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Definition
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Term
| 3 examples of liquid assets |
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Definition
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Term
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Definition
| stocks, bonds, retirement accounts |
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Term
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Definition
| Any asset totals listed on the application that exceed the required amount to close on the loan |
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Term
| 4 things a gift letter will contain |
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Definition
1. amount
2. date the funds were transferred
3. donor's name, address, telephone #
4. Donor's relationship to the owner |
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Term
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Definition
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Term
| A seller's contribution can be used towards the borrower's... |
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Definition
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Term
| a bank statement expires after x days |
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Definition
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Term
| a bank statement must have |
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Definition
1. bank name
2. borrower's name
3. all pages |
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Term
| DU evaluates the credit risk of all loans based on |
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Definition
| the borrower's income, assets, liabilities |
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Term
| what will you find in the "Summary" section of a DU report |
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Definition
| borrower's name, loan #, date the file was written |
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Term
| 3 times you would re-run DU |
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Definition
1. loan amounts change by more than $500
2. interest rate changes by more than 3 % listed
3. income changes by more than 5% |
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Term
| where do you find the minimum documentation requirements? |
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Definition
| in the verification message section of the DU findings report |
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Term
| Who can run DU on a loan once it is in the processor's pipeline? |
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Definition
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Term
| Verification messages are separated into what categories? |
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Definition
| income, asset, credit, appraisal, title |
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Term
| DU cannot determine certain aspects of the loan that would require additional documentation |
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Definition
1. new employment
2. change in military rank |
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Definition
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Term
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Definition
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Term
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Definition
| Real Estate & Settlement Procedures Act |
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Term
| An application will list a borrower's two year residency and employment history |
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Definition
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Term
| GFE is designed to give the borrower |
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Definition
| an approximation of their total costs |
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Term
| GFE must be issued within x days of the application |
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Definition
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Term
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Definition
| legal doc that sets the conditions for the legal transfer or property from the seller to the buyer. |
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