Podcast
Questions and Answers
What is the main purpose of a credit report for lenders?
What is the main purpose of a credit report for lenders?
- To evaluate the borrower's payment practices and credit management (correct)
- To analyze the borrower's social media activity
- To assess the borrower's favorite food
- To determine the borrower's favorite color
Which ratio compares total monthly housing expenses to gross monthly income?
Which ratio compares total monthly housing expenses to gross monthly income?
- Total Debt Ratio
- Income-to-Expense Ratio
- Capacity Ratio
- Housing Ratio (correct)
Which is NOT one of the five C's of credit?
Which is NOT one of the five C's of credit?
- Collateral
- Character
- Capacity
- Color (correct)
What is the maximum back-end ratio generally preferred by FNMA for 1st Mortgages?
What is the maximum back-end ratio generally preferred by FNMA for 1st Mortgages?
What does LTV stand for in mortgage and loan terms?
What does LTV stand for in mortgage and loan terms?
Which type of loan does NOT require mortgage insurance because it is guaranteed?
Which type of loan does NOT require mortgage insurance because it is guaranteed?
What is a good practice for determining a borrower's ability to repay a loan?
What is a good practice for determining a borrower's ability to repay a loan?
What is the critical document that lenders review to understand a borrower's credit management?
What is the critical document that lenders review to understand a borrower's credit management?
Which loans do NOT follow FNMA or FHLMC guidelines?
Which loans do NOT follow FNMA or FHLMC guidelines?
What does PMI stand for?
What does PMI stand for?
What is the term for the ratio that compares a borrower's total monthly debts to their gross monthly income?
What is the term for the ratio that compares a borrower's total monthly debts to their gross monthly income?
What does FHA stand for?
What does FHA stand for?
Which of the following is a factor in assessing a borrower's creditworthiness?
Which of the following is a factor in assessing a borrower's creditworthiness?
What does the term 'non-traditional credit sources' refer to?
What does the term 'non-traditional credit sources' refer to?
