Qualified and Non-Qualified Mortgage Essentials Practice Test

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• According to QM Rule points and fees limits, which statement is true about HUD-insured loans?
• What is described by the USDA Loan Guarantee Fee?
• FHA stands for which federal agency?
• Which verification method is associated with a common Non-QM loan type known as a bank statement loan?
• Which statement about FHA Mortgage Insurance Components is true?
• Borrowers with credit scores in the 500-579 range are eligible for FHA financing up to which LTV?
• Which Non-QM loan type uses monthly payments derived from available assets?
• For loans larger than $144,000, what is the maximum VA guaranty percentage?
• Which statement best describes an asset-depletion loan?
• Under VA fixed-rate loan programs, which statement is true about term lengths?
• What does IRRRL stand for in VA loan programs?
• What is the primary purpose of the Closing Disclosure?
• Which item is associated with VA loan terminology as part of the value assessment process?
• Which statement best describes conclusive presumption of compliance in QM?
• FHFA Authority and Origin: Created under which law?
• What components prove a borrower's ability to repay in underwriting?
• Which statement about FHA mortgage insurance is true?
• If points and fees exceed the 3% cap, what is the loan's status with respect to QM?
• How is Fannie Mae's corporate structure described?
• TRID's three-business-day rule concerns what?
• When can a borrower request PMI cancellation?
• The organization abbreviated as FHLMC is commonly known as
• Which of the following is most likely to have higher costs: QM loan or Non-QM loan?
• For FHA loans with LTV 90% or less, MIP duration is:
• What is the minimum credit score required for the maximum FHA loan-to-value ratio of 96.5% (3.5% down)?
• Is a no-doc loan allowed under QM?
• What does full documentation mean in ATR underwriting?
• Are refinancing loans subject to QM criteria?
• Qualified Mortgage APR limit: The APR cannot exceed APOR by more than what percentage?
• For borrowers with credit scores of 500-579, FHA financing is up to what LTV?
• How do FHA annual MIP rate thresholds vary?
• How do lenders determine "monthly living expenses" for ATR?
• Under General QM, can a borrower with high DTI qualify?
• What does ATR stand for in mortgage lending?
• Which term describes a Non-QM loan where income is verified using bank statements?
• Which description best defines a conforming conventional loan?
• Which item is included in back-end DTI but not front-end DTI?
• Which features are permitted under non-QM features?
• Direct RHS Loans may have which loan term options?
• Which statement about ATR underwriting is true?
• Which statement best describes the underwriting difference between QM and Non-QM?
• Who is exempt from VA funding fees?
• Which factor best describes a Non-QM loan due to balloon payments or similar features?
• A Nonconforming Loan is best described as?
• FHA fixed-rate loans are available in which fixed-term options?
• Which agency administers the FHA mortgage insurance program?
• Are 'stated income' loans typically QM or Non-QM?
• Which agency is responsible for enforcing ATR and QM rules?
• Which loan type uses a residual income analysis as part of underwriting?
• Qualified Mortgage Rule Scope applies to which property types?
• FHA Annual MIP Rate Threshold
• Under Non-Qualified Mortgage (Non-QM) underwriting, the analysis of borrower repayment ability is:
• Back-end DTI is defined as which of the following?
• What is the maximum term permitted for a Qualified Mortgage?
• What is the significance of escrow accounts in mortgage lending?
• Which statement defines jumbo loan classification?
• Which factor is most critical in determining a mortgage's qualification as a QM?
• What does 'residual income' refer to in ATR analysis?
• Are VA fixed-rate loan terms allowed to include 40-year terms?
• Why might an investor prefer QM status for a loan pool?
• What is the typical back-end debt-to-income (DTI) limit used to define a General QM?
• What is the abbreviation for Loan Estimate?
• Which of the following is a 'risky feature' that would prevent QM status?
• When must the Loan Estimate be provided under TRID?
• What does fully amortizing mean in mortgage loans?
• Which option best defines Seasoned QM?
• Under ATR underwriting, lenders must do what before extending credit?
• FHA Loan Mortgage Insurance Requirement
• What is the cap on points and fees for a QM?
• Are loans with negative amortization considered QM?
• What is the effect of the conclusive presumption of compliance on underwriting for eligible loans?
• Which loan characteristic is typically not allowed in QM but common in Non-QM?
• Conventional mortgages are divided into which subcategories?
• Under ATR requirements, lenders must do what before extending credit?
• The conclusive presumption of compliance qualification is tied to meeting which standard?
• Which statement describes VA loan Qualified Mortgage classification?
• When is a QM prepayment penalty permitted?
• Which of the following statements accurately describes the conclusive presumption of compliance?
• Does a 30-year fixed-rate loan automatically qualify as a QM?
• For FHA loans with LTV greater than 90%, how long is MIP required?
• Which statement about the VA loan assumability feature is true?
• Which factor would cause a loan to be Non-QM due to non-traditional income?
• How do bank statement loans compute monthly payments when income is documented differently?
• Under FHA rules, UFMIP is typically what?
• What are safe harbor protections in the context of QM?
• What fixed-rate term options are permissible for VA loans?
• Which statement best describes the relationship between balloon QM portfolio requirements and small creditors?
• True or False: A loan that has a balloon payment can still be a Qualified Mortgage.
• Which loan characteristic is necessary for the conclusive presumption of QM compliance to apply?
• What does ATR stand for in mortgage regulation?
• What distinguishes a Non-QM loan from a QM loan in terms of investor protections?
• What is the main risk lenders mitigate by requiring ATR?
• The conclusive presumption of compliance qualification is primarily intended to facilitate underwriting for which category?
• Which description accurately reflects the conclusive presumption of compliance qualification?
• FHA credit score ineligibility cutoff: applicants with scores below what are not eligible for FHA loans?
• Which statement accurately describes front-end and back-end DTI?
• Which loans benefit from the conclusive presumption of QM compliance?
• In practice, conclusive presumption of compliance means: which loans are presumed to comply with QM without further testing?
• Do most QM loans require an escrow account for taxes and insurance?
• Which mortgage category is associated with the phrase not higher-priced mortgage loan?
• Which mortgage category is more likely to require escrow accounts?
• Which of the following best lists the four categories of information central to ATR underwriting?
• Which statement correctly describes MIP vs PMI applications?
• What is the preferred back-end debt-to-income ratio for a VA loan?
• Nontraditional Mortgage Repayment Guidance requires repayment capacity to be based on what?
• The conclusive presumption of compliance qualification applies to which category of loans under general Qualified Mortgage standards?
• What should a borrower expect to see on a Closing Disclosure that differs from the Loan Estimate?
• FHA Loan Limit Authority
• What down payment corresponds to the maximum FHA LTV of 96.5%?
• How is the Conforming Loan Limit Determination established?
• Which agency guidelines define what constitutes a conforming loan?
• <10% Down: What is the maximum seller contribution?
• TRID requires two disclosures: which are they?
• FHA loan product examples include which of the following?
• Which FHA loan product example is a reverse mortgage?
• Under the conclusive presumption of compliance, which loans are presumed compliant with QM rules without additional assessment?
• What does UFMIP stand for in FHA loans?
• If a borrower makes a down payment of 15%, the seller is allowed to contribute up to what percentage of the purchase price?
• Which statement defines a jumbo loan?
• What standard does QM seek to ensure about loan payments?
• Which factors determine FHA annual MIP calculation?
• What portfolio requirement applies to balloon QM for small creditors?
• What description best fits stated income loans?
• Which statement about the 43% DTI in General QM is accurate?
• What are the caps for QM prepayment penalties?
• Which of the following is typically included in monthly debt obligations for DTI calculations?
• TRID's early disclosure is used for what purpose?
• Which statement about Fannie Mae is true?
• For borrowers with credit scores in the 500-579 range, what is the FHA loan-to-value limit?
• What is the scope of the conclusive presumption of compliance qualification?
• In VA underwriting, what does the Residual Income Analysis assess?
• What is the commonly cited DTI cap for General QM?
• In calculating residual income, which item is subtracted from gross income?
• What is the role of points and fees in determining QM status?
• How does the Dodd-Frank Act relate to QM?
• What is the effect of QM status on the sale of loans to investors?
• Which source is used to determine monthly living expenses for ATR analysis?
• In the conclusive presumption framework, what type of loans are covered by this qualification?
• VA loan insurance rule: Does not require mortgage insurance; requires a VA funding fee instead.
• Which of the following best captures the scope of the conclusive presumption of compliance within QM standards?
• TRID stands for which regulatory framework in mortgage lending?
• Under VA loan rules, when is eligibility for using a VA loan restored?
• What is the purpose of FHA insurance?
• What is the maximum seller contribution for loans with 10% to 24.9% down?
• Which describes Non-QM underwriting approach?
• The VA loan guaranty primarily provides lenders protection against which risk?
• What is the purpose of the Conforming Loan Limit Determination?
• In ARM underwriting, the rate used to calculate the borrower's ability to repay is which rate?
• Which features are prohibited in a Qualified Mortgage due to risk concerns?
• What does VA entitlement definition refer to?
• What does Safe Harbor Qualified Mortgage ATR Protection provide?
• VA First-Time Down Payment Requirement
• What is the purpose of the 36-month seasoning requirement for seasoned QM?
• Which statement about VA loans and QM classification is accurate?
• What is residual income in mortgage underwriting?
• In QM, what is fully amortizing and why is it important?
• What is the minimum holding period required for a seasoned QM?
• What is true about Non-QM pricing compared to QM?
• Which statement best describes conforming loan limits?
• UFMIP payment timing: which statement best describes when UFMIP is due?
• Under conclusive presumption, the qualification is granted to loans meeting which criteria?
• In ATR analysis, when residual income is insufficient, what is the likely underwriting outcome?
• Why do Non-QM loans exist in the mortgage market?
• Which statement accurately describes the difference between seller concessions and seller financing?
• In ARM underwriting, the borrower's ability to repay is calculated at which rate?
• Which entities does the FHFA supervise?
• Which loan program uses MIP?
• Can a loan with a 3.5% points and fees be considered a QM?
• What is the maximum term allowed for QM eligibility?
• How does the exam define 'Non-Qualified Mortgage Essentials'?
• Which statement about ATR and QM is most accurate?
• Which of the following statements identifies items included in Unique VA Loan Terminology?
• Conforming loan limits are established by which agency?
• Which loans may legally charge prepayment penalties?
• Regarding FHA UFMIP refundability, which statement is correct?
• What is the typical pricing implication for Non-QM loans?
• Which description best defines risk layering?
• FHLMC Abbreviation
• When does Automatic PMI Cancellation occur?