Interview Questions

CREDIT

1. What is Fair/Derogatory credit?

2. Credit Report Expiration date?
3. Which section of credit report explains new credit accounts?
4. What items would be reported under public records?
5. Name the type of accounts that J, I, A and C represent?
6. What type of payment history does the code R3 represent?
7. What does MR indicate on tradeline?
8. What are the 2 forms of additional credit documents used to verify the housing payment?
9. Comment few red flags in credit report.
10. What is the difference between the codes “9” or a series of “99999999999” in the history field?
11. Explain the type of alerts in the credit Report.
12. List the credit repositories and their scoring model.

CAPACITY

1. Qualifying income should meet what 4 R criteria?

2. List few types of other income.
3. Name the 3 types of payroll deductions.
4. Should a loan from a borrower’s 401K be considered as part of their liabilities?
5. Explain unreimbursed business expenses
6. For OT and bonus income the continuance of the income should be verified from which
document?
7. What is Temporary/Contractor worker income?
8. Explain the items BAH and BAS on LES.
9. Explain Teacher/Nurse income calculation.
10. When handwritten pay stubs are submitted what additional documents are required?
11. When an Underwriter would request a WVOE?
12. Difference between VA Benefits and VA educational benefits?
13. Explain Foster care / Trust income and the document requirements.
14. List the documents required for rental income/loss calculation.
15. List the unacceptable income.
16. When Lease agreement will be used and how the gross rents will be calculated?
17. List the red flags in W, Pay stub, tax returns and VOE.

CAPITAL

1. List the type of Assets

2. What is the purpose of receiving a bank statement and how to review it?
3. What is Mattress money?
4. Is there a chance of discovering undisclosed debts from bank statements?
5. Reserves required liquidation of funds or not?
 6. List the document requirements for a gift of equity.
7. Explain the gift letter items to be reviewed.
8. What is the difference between Gifts and Grants?
9. How to calculate the real estate proceeds from 1003?
10. What % value may be used on vested balance for an IRA to determine the funds towards
closing?
11. List the unacceptable sources of funds.
12. What is the purpose of bridge loan?
13. Define Shortage.
14. Explain VOD.
15. What are the possibilities of red flags in bank statements?

COLLATERAL

1. The owner of public record on the Appraisal should be consistent with what other loan
documents?
2. The APN# should be consistent with what document?
3. What items on the Appraisal can require the PITI(A) to be updated?
4. List the Appraisal Form Numbers for Condo and Single-family PUD.
5. An appraisal can be dated before the sales contract?
6. What should be reviewed in the contract section of the Appraisal?
7. What are the acceptable tolerances for single, net and gross adjustments?
8. What are the two purposes of a 1004D?
9. If appraisal is expired at closing a __________is required?
10. Which photos are required with an URAR?
11. What needs to be included in the location Map?
12. With which appraisal form the 1004MC addendum is required?
13. What are the required exhibits for reduced appraisal?
14. What is PIW and when can it be used?
15. List few red flags in Appraisal form.