Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 415

In a one-time construction close taking over 4 months, FNMA requires the borrower to do what?

Provide new information about income, credit, and assets.

In a one-time construction close scenario that extends beyond four months, FNMA (Federal National Mortgage Association) mandates that the borrower must provide new information regarding their income, credit, and assets. This requirement is in place to ensure that the borrower's financial situation remains stable and meets the lending criteria under which they qualified initially.

The dynamic nature of financial conditions means that a borrower's income or credit profile may change significantly over an extended period. By requiring updated documentation, FNMA can verify that the borrower is still in a position to repay the loan, mitigating risks for both the lender and the borrower.

The other options do not capture the essence of FNMA's requirements in this situation. While some scenarios may involve extension fees or increased down payments based on changes in loan terms or conditions, the specific focus in this case is on ensuring that the borrower's current financial profile is accurately represented through updated information.

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Pay a rate lock extension fee.

Submit additional documentation.

Increase the down payment.

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