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Loan Origination Process Flashcards

7 cards from real CMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Loan Origination Process flashcards as text

  1. Under RESPA, the Loan Estimate must be delivered to the borrower within how many business days of receiving a completed loan application?

    Answer: 3 business days

    RESPA and TRID require lenders to provide the Loan Estimate within 3 business days of receiving a completed loan application.

  2. Which of the following is NOT one of the six pieces of information that trigger a completed loan application under TRID?

    Answer: Borrower's income

    The six TRID triggers are borrower name, SSN, income, property address, estimated value, and loan amount — income is actually included, but it is the only one that can vary; the trick here is that 'borrower's income' is indeed one of the six pieces.

  3. A loan officer receives a complete application on Monday. What is the latest day the Loan Estimate may be delivered to comply with the 3-business-day rule (assuming no federal holidays)?

    Answer: Thursday

    Business days under TRID include all calendar days except Sundays and federal public holidays, so Monday + 3 business days = Thursday.

  4. During loan origination, what does the term 'pipeline management' primarily refer to?

    Answer: Monitoring and managing all active loan applications from submission to closing

    Pipeline management refers to tracking and managing all active loan files through each stage of the origination process to ensure timely closings.

  5. Which document authorizes a lender to verify a borrower's tax transcripts directly with the IRS?

    Answer: Form 4506-C

    IRS Form 4506-C (Request for Transcript of Tax Return) authorizes the lender to obtain tax transcripts directly from the IRS for income verification.

  6. A borrower's loan application is taken verbally over the phone. Under Regulation B, when must the loan officer provide the applicant with a copy of the right-to-receive-appraisal notice?

    Answer: Within 3 business days of application

    Regulation B (ECOA) requires lenders to notify applicants of their right to receive a copy of the appraisal within 3 business days of receiving the application.

  7. What is the primary purpose of the 1003 Uniform Residential Loan Application?

    Answer: To collect standardized financial and personal information needed to evaluate a mortgage application

    The Fannie Mae Form 1003 (URLA) is the standardized application form used to collect borrower financial, employment, and property information for underwriting evaluation.