T or F: cash-out loans require additional debts to be paid at closing.
FALSE. Many times additional debts are paid, but it is not REQUIRED.
10
T or F: cash-out loans typically have lender credits/lender-paid fees
FALSE. Be sure to check your loan comments to find out how the loan was sold.
15
T or F: the entire appraisal fee - including the appraisal management portion - should be listed on fee line #803
TRUE. The appraisal management amount also gets broken out into its own fee line.
15
What is the maximum cash out limit on a conventional cash-out refinance loan?
There is no limit to how much the borrower can get back.
10
Name three inspections you might find in EDMS on a VA cash-out refinance loan.
Septic, Water, Pest, Termite are all acceptable answers.
15
Name three types of debt that might be paid using the proceeds from a cash-out refinance loan.
Revolving debt (credit cards), installment loans (car), judgements, mortgage loans are all acceptable answers.
15
What does the acronym POC mean?
Paid Outside of Closing, which may apply to invoices for items such as appraisals.
5
On cash-out refinance loans, how much does Freedom charge for a credit report?
Whatever amount is listed on the credit report, or zero if there is no charge listed.
10
T or F: the "List of Payees for Full Docs" needs to be filled out and uploaded to EDMS for a cash-out refinance loan that is just paying off one mortgage.
False.
15
T or F: creditor abbreviations are allowed to be used when closing cash-out refinance loans.
False.
10
If you are using the "List of Payees for Full Docs" in your loan closing, what EDMS category should you upload it to?
The Payoff category.
15
Which EDMS document will show you if a VA borrower is exempt or non-exempt from the VA funding fee?
Certificate of Eligibility (COE)
15
When working on a cash-out refinance loan, how will you know if an appraisal fee was Paid Outside of Closing (POC) by the borrower?
You should find notes about it in your loan comments.
15
A credit supplement is acceptable documentation for which type of debt on a cash-out refinance loan?
Revolving - or credit card - debt.
20
How do you calculate the payoff for a second mortgage or Home Equity Line of Credit (HELOC)?
The same way you calculate the payoff for a first mortgage.
15
When your loan has a Paid Outside of Closing (POC) fee, which Lakewood screen do you use to document the payment was received?