Written Assignment #3 – Analyzing a Residential Loan Application Form 1003 This

Written Assignment #3 – Analyzing a Residential Loan Application Form 1003
This Assignment will give you the opportunity to review a Uniform Residential Loan Application Form 1003 for a Single-Family Residential Home Loan Purchase. The goal of this exercise is to get you familiar with the overall structure and general content of these documents.
Read the Purchase Transaction Scenario with the supporting document thoroughly; using the links in the Canvas Assignment page to access the file Loan Application 1003 Example
. Then review and answer all the Questions below. Please provide answers that include further support of your initial answer in your own words based on your understanding of the concept being asked. As this is a Written Assignment meant for you to express your understanding of these concepts, please go beyond just a simple copy and paste of the course materials in your answers to get full credit for your submission (see Rubric for grading criteria). Make sure you clearly indicate within your answer which question or part(s) of question you are answering.
Make sure to save your work when completed. Upload your work into the Work Assignment Page on Canvas prior to the due date posted in Canvas. Submitting your work submission as a Text only, picture file, IOS Pages, or a PDF document is also acceptable.
MS Word version of this Assignment (FILE ATTACHED)
Purchase Mortgage Loan Transaction Scenario:
Mortgage Banker is arranging the Mortgage Loan for client Sam Borrower (the Buyer) of a residential property. Through their Real Estate Agent at Omega Brokerage their desired Property was located and their purchase offer which was accepted. Escrow has been opened on this transaction. In the following days after Escrow opening, The Lender has completed the Residential Loan Application Form 1003 and collected the current financial statement documents requested from the Borrower. The Loan interest rate has been locked. A Loan Estimate has been issued, reviewed, and accepted. The Property Appraisal and Title Preliminary Report have been ordered. During this time, the Loan Officer is going over their checklist to make sure all the required components of the Loan File are being assembled so the file can be submitted to their Underwriting Department for Final Loan Approval.
You have been asked as Assistant to the Loan Officer to review the completed Loan Application to make sure things look in order and to answer any questions that may come up regarding the application’s information.
Although the Loan Application does not display electronic signatures, assume these documents were fully executed via electronic signatures which is typical modern practice. Also keep in mind the data shown is only for example purposes only and that the cost figures shown are not necessarily accurate representations of actual costs or totals incurred for current transactions.
Questions Regarding the Loan Application documents file:
Is the Borrower applying for the loan on their own or is there a co applicant? How (where) did you determine this?
How long has the Borrower lived at their current address and do they own or rent this property they currently live in? What is their current housing cost per month?
Has the Borrower’s length of current employment exceeded 2 years? Are they currently Self-employed? What is their current Gross Monthly Income total?
What types of Assets and what types of Liabilities did they state on their application? Does the Borrower have sufficient Assets to cover their existing Liabilities?
What is the indicated Property Value (Purchase Price) and Loan Amount for the Property?
Is the Indicated property on the loan application a multi-unit (multifamily) property? Is the property going to be used as a primary residence? How (where) did you determine this?
Is there anything marked under the Section 5 (Declarations 5A and 5B) that would be a concern for the Underwriter in approving this loan?
After reading Section 8 of the Application, why do you think there is an option to either elect to state the borrower’s Ethnicity and Race or to mark it so as not to provide that information? How do you think this part of the application ties into Fair Housing Laws?
What is the Loan Type, Interest rate, and Monthly payment indicated for this purchase?
Based on the Loan amount and Sales price, what is the Loan to Value (LTV) percentage? What is the estimated amount of closing costs the Buyer is expected to be charged?
Are there any credits being provided to the Borrower, if so from whom and how much?
Based on these indicated calculation figures in section L4, if the loan were to close under these terms, how much Cash would the Borrower need to bring to Escrow to close the transaction? Do they currently have sufficient funds available to cover their down payment and closing costs? How (where) did you determine this?
Based on what you have learned so far in this course and from this document regarding the Loan Application Process, what information did you find useful that could help you or someone you may help/service in the future?
End of Assignment
Written Assignment Rubric 2021
Written Assignment Rubric 2021
Criteria Ratings Pts
This criterion is linked to a Learning OutcomeAssignment Submission Accuracy
15 pts
Full Points
15 Points awarded – Assignment accurately completed with correct calculations and accurate written answers to all parts of all the questions,
10 pts
Partial points
10 Points awarded – Assignment overall completed with correct calculations and written answers but have 1 or 2 missing or incorrect elements, answers, or calculations not to exceed 50% of assignment content.
0 pts
No Points
Submission answers were significantly deficient OR that exceeds more than 50% of assignment content based on the Assignment requirements.
15 pts
This criterion is linked to a Learning OutcomeAssignment Submission Student answer enhancement
10 pts
Full Points
10 Points awarded – Written answers containing explanations and additional perspective or detail to display understanding of the course material content, beyond providing only the simple answer or just a restatement of the course material.
0 pts
No Points
Assignment answer provided were simple statements or were direct re-statements from the course materials without any further explanation or support of the relevant topics to demonstrate understanding of the course material.
10 pts
This criterion is linked to a Learning OutcomeAssignment Submission meeting deadline
5 pts
Full Points
5 Points awarded – Assignment was turned in by the Due date and time OR allowed past due date with a satisfactory reason provided AND Instructor consent.
0 pts
No Points
Assignment not turned in by the due date and time.
5 pts

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