1. Borrower.docx

1. What is the first step when you receive a call from a potential client? A) Ask for their social security number B) Thank them for their interest and introduce yourself C) Immediately ask if they want to purchase or refinance D) Hang up and wait for them to call back Answer: B) Thank them for thei...

1. What is the first step when you receive a call from a potential client? A) Ask for their social security number B) Thank them for their interest and introduce yourself C) Immediately ask if they want to purchase or refinance D) Hang up and wait for them to call back Answer: B) Thank them for their interest and introduce yourself 2. What should you inquire about to understand a client's current financial situation better? A) If they have been pre-qualified for a mortgage B) Their favorite movie C) The name of their first-grade teacher D) Their preferred ice cream flavor Answer: A) If they have been pre-qualified for a mortgage 3. If a client is interested in purchasing a property, what is one of the questions you should ask? A) What is your favorite color? B) How much are you putting down? C) Do you believe in aliens? D) What is your shoe size? Answer: B) How much are you putting down? 4. For a refinance inquiry, what information is crucial to obtain from the client? A) The amount of their current mortgage B) Their favorite vacation spot C) The color of their house D) Their pet's name Answer: A) The amount of their current mortgage 5. What type of identification is required for a mortgage application? A) Library card B) Copy of a Driver's License or other photo ID issued by a State or Federal Government body C) Gym membership card D) University ID card Answer: B) Copy of a Driver's License or other photo ID issued by a State or Federal Government body 6. Which document is necessary to prove the source of an Earnest Money Deposit? A) A selfie at the bank B) A copy of the Earnest Money Deposit canceled check (front & back) C) A handwritten note promising payment D) An email confirmation of deposit Answer: B) A copy of the Earnest Money Deposit canceled check (front & back) 7. For rental properties, what documentation is required? A) A list of potential tenants B) Current Leases for all rental properties C) Photos of the rental properties D) A blueprint of the rental properties Answer: B) Current Leases for all rental properties 8. To assess competitiveness, what should you ask the client regarding other lenders? A) Are there any other lenders that you are considering? B) Do you believe in ghosts? C) How many languages do you speak? D) What is your favorite kind of soup? Answer: A) Are there any other lenders that you are considering? 9. What is a key closing question to gauge the client's timeline and interest? A) How soon will you be making a decision on this transaction? B) When is your birthday? C) How often do you visit the zoo? D) What is your opinion on climate change? Answer: A) How soon will you be making a decision on this transaction? 10. What form numbers are associated with the Uniform Residential Loan Application? A) Form 101 and Form 202 B) Freddie Mac Form 65 & Fannie Mae Form 1003 C) Form 303 & Form 404 D) Freddie Mac Form 75 & Fannie Mae Form 1103 Answer: B) Freddie Mac Form 65 & Fannie Mae Form 1003 11. As of what date is the provided version of the Uniform Residential Loan Application effective? A) 1/2019 B) 1/2020 C) 1/2021 D) 1/2022 Answer: C) 1/2021 12. What section of the application asks about your personal information and income? A) Section 1: Borrower Information B) Section 2: Financial Information C) Section 3: Real Estate Information D) Section 4: Loan and Property Information Answer: A) Section 1: Borrower Information 13. Which section asks about the loan’s purpose and the property you want to purchase or refinance? A) Section 2 B) Section 3 C) Section 4 D) Section 5 Answer: C) Section 4 14. In the Declarations section, what does it ask about borrowing money for the real estate transaction? A) If you are borrowing from a bank only B) If you are borrowing any money not disclosed on this loan application C) If you are borrowing money from family only D) If you are using only your funds Answer: B) If you are borrowing any money not disclosed on this loan application 15. What does Section 5 ask about in relation to past financial history? A) Only about past loans B) About your employment history C) Specific questions about property, funding, and financial history D) Only about your credit score Answer: C) Specific questions about property, funding, and financial history 16. What does the application say about electronic records and signatures? A) They are not as effective as paper records B) They are only used for internal purposes C) They are as effective and enforceable as paper applications signed in writing D) They are discouraged Answer: C) They are as effective and enforceable as paper applications signed in writing 17. What does the application warn about in terms of delinquency? A) It may result in a reward B) It will not affect your credit score C) Late payments may be reflected in your credit report D) It is encouraged in certain situations Answer: C) Late payments may be reflected in your credit report 18. Who does the term "Lender" include according to the loan application? A) Only the individual processing your loan B) The Lender’s agents, service providers, successors, and assigns C) Only the bank's president D) None of the above Answer: B) The Lender’s agents, service providers, successors, and assigns 19. Demographic Information aim to monitor? A) The lender's profitability B) Compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws C) The borrower's creditworthiness D) The lender's market share Answer: B) Compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws 20. What does the application require regarding changes in the information provided before closing the loan? A) Changes do not need to be reported B) Changes must be reported, and the application updated C) Only major changes need to be reported D) Changes should be reported only if they are positive Answer: B) Changes must be reported and the application updated