Preview Questions Loan Officer | Role Specific Skill

Question 1: How does a fannie mae loan differ from a freddie mac loan?

Which action should you take?

Choose only one option

Fannie Mae deals primarily with conforming loans, while Freddie Mac purchases loans from smaller banks

Fannie Mae offers more flexible repayment terms than Freddie Mac

Freddie Mac loans are more secure than Fannie Mae loans

Freddie Mac deals with conventional loans only, while Fannie Mae works with both conventional and government loans

Question 2: What is the maximum amount a financial institution can charge for a late fee under the TILA regulation?

Which action should you take?

Choose only one option

There is no specific limit

? 25

? 50

? 100

Question 3: What is the purpose of a convertible bond?

Which action should you take?

Choose only one option

It offers a fixed interest rate with no option for early redemption

It guarantees a fixed return on investment, with no additional risks to the bondholder

It can be redeemed at face value only if the bondholder agrees to accept a lower interest rate

It allows the bondholder to convert the bond into a specified number of shares of the issuing company

Question 4: In a loan modification, which of the following may be modified to help the borrower?

Which action should you take?

Choose only one option

The down payment requirement is reduced

The interest rate, payment amount, and loan term

The loan type from fixed to adjustable

The loan amount to reflect the current market value

Question 5: Which of the following scenarios would not require additional documentation during loan origination?

Which action should you take?

Choose only one option

A borrower applying for a loan with multiple co-signers

A borrower with a recent bankruptcy on their record

A borrower with a high credit score and stable income

A borrower with insufficient income documentation

Question 6: In the loan origination process, what is the purpose of a pre-qualification letter?

Which action should you take?

Choose only one option

To legally bind the borrower to accept the loan terms

To confirm the borrower's creditworthiness after completing full underwriting

To give the borrower an indication of the loan amount they may be eligible for, based on preliminary information

To lock in the interest rate before completing the loan application process