Credit Assessment

An educational illustration depicting a person analyzing a credit report with graphs and charts in the background, emphasizing financial literacy and mortgage processing.

Credit Assessment Quiz

Test your knowledge about credit assessments and understand the intricacies of credit scores and reports. This quiz is designed for those looking to enhance their understanding of mortgage loan processes.

12 engaging questions
Multiple choice and text-based answers
Learn about credit scores, reports, and the risk assessment process

12 Questions3 MinutesCreated by AssessingCredit101

The representative credit score for the mortgage loan is determined based on

The credit scores of any of the borrower

The credit scores of each borrower

Credit reports must meet the following general requirements:

1) The report must include both credit and public record information for each locality in which the borrower has resided during the most recent two-year period. 2) The report must include both credit and public record information for each locality in which the borrower has resided during the most recent two-year period.

1) The report must include borrower's dependents 2) The report must report all the borrowers source of income including self employed income

Credit scores are not an integral part of DU's risk assessment because DU performs its own analysis of the credit report data.

True

False

Collected credit report information should not be changed. However, it is permissible to delete duplicate information, translate codes to plain language, and make appropriate adjustments to resolve conflicting information to ensure the clarity of the report.

True

False

If the credit report does not include a reference for each significant open debt on the application, the lender must not obtain a separate written verification for each unreported debt.

True

False

Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.

True

False

Open judgments and all outstanding liens that are in the Public Records section of the credit report will be identified in the Underwriting Findings report, and must not be paid off at or prior to closing.

True

False

Credit histories that include revolving accounts with a low balances-to-limits ratio generally represent a lower credit risk, while those that include accounts with a high balances-to-limits ratio represent a higher credit risk.

True

False

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