Which of the following is NOT a qualifying factor used by lenders when underwriting a residential mortgage loan?
Why Borrower's political affiliation Is Correct
Answer D: Borrower's political affiliation
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related California Questions
- A loan in which the interest rate changes periodically based on a financial index is called a(n):Finance
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on all of the following EXCEPT:Finance
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in lending based on all of the following EXCEPT:Finance
- Under the federal Homeowners Protection Act, when must lenders automatically cancel PMI on a residential mortgage?Finance
- What is the standard appraisal form used for a single-family residential property in a federally related mortgage transaction?Property Valuation
Key Terms to Know
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →