What is the primary responsibility of a mortgage loan processor?
Mortgage loan processors are responsible for collecting and reviewing documents to ensure applications meet lender and legal guidelines.
Which document shows a borrower’s financial ability to repay a loan?
The loan application includes income, assets, and liabilities, which help assess repayment ability.
What is the purpose of the loan estimate form?
The loan estimate provides borrowers with information on loan terms, projected payments, and closing costs.
What is the main role of underwriting in mortgage processing?
Underwriting involves evaluating the borrower’s financial information and risk to determine loan approval.
Which of the following is considered a red flag in the loan file?
Red flags may indicate potential fraud or discrepancies that require further investigation.
What must happen before a loan is cleared to close?
The underwriter must approve the loan and issue a clear-to-close after all conditions are met.
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What is the function of a title search?
A title search confirms legal ownership and reveals any liens or claims on the property.
What document does the closing disclosure replace?
The closing disclosure replaces the HUD-1 Settlement Statement and final Truth-in-Lending disclosure.
Which of the following is the most accurate description of pre-qualification?
Pre-qualification is an initial assessment of the borrower’s finances to estimate how much they may borrow.