Consolidated Analytics Interview Questions and Answers

The three C's of underwriting are Credit, Capacity, and Collateral, essential for assessing borrower risk.

• Credit: Evaluates the borrower's credit history and score. For example, a higher credit score indicates lower risk.

• Capacity: Assesses the borrower's ability to repay the loan based on income and debt-to-income ratio. For instance, a DTI ratio below 36% is favorable.

• Collateral: Refers to the value of the property be...read more

DTI ratio measures a borrower's monthly debt payments against their gross monthly income.

• DTI is calculated by dividing total monthly debt payments by gross monthly income.

• Total monthly debt includes mortgage payment, credit cards, car loans, etc.

• For example, if total monthly debts are $2,000 and gross income is $6,000, DTI = $2,000 / $6,000 = 0.33 or 33%.

• Lenders typically prefer a DTI ratio below 43% for mortgage appro...read more

Yes, I am familiar with key mortgage documents in a loan package, essential for underwriting decisions.

• Uniform Underwriting Application (Form 1003) - collects borrower information.

• Appraisal Report - assesses property value and condition.

• Credit Report - evaluates borrower's creditworthiness.

• Loan Estimate - outlines loan terms and costs.

• Title Report - verifies property ownership and any liens.

Yes, I have experience with various Loan Review Software that streamline the underwriting process and enhance accuracy.

• Familiar with software like Encompass and Calyx, which help in managing loan applications efficiently.

• Utilized automated underwriting systems to assess borrower risk and streamline decision-making.

• Experience in integrating loan review software with CRM systems for better client management.

• Regularly tra...read more

I have underwritten over 500 mortgage files, ensuring compliance and risk assessment for each application.

• Volume of Files: In my previous role, I underwrote approximately 600 mortgage files, ranging from conventional to FHA loans.

• Diverse Loan Types: I handled various loan types, including first-time homebuyer programs and investment properties, ensuring tailored assessments.

• Risk Assessment: Each file underwent thorough...read more

The loan to value (LTV) ratio measures the loan amount against the appraised value of the property, indicating risk for lenders.

• LTV Calculation: LTV is calculated by dividing the loan amount by the appraised value of the property and multiplying by 100.

• Example: If a borrower wants a loan of $200,000 for a home valued at $250,000, the LTV is (200,000 / 250,000) * 100 = 80%.

• Risk Assessment: A higher LTV ratio indicates h...read more

I have experience in both origination and closed loan underwriting, focusing on risk assessment and compliance.

• Origination underwriting: Evaluated borrower applications for initial loan approval, assessing creditworthiness and financial stability.

• Closed loan underwriting: Reviewed final loan documents to ensure compliance with regulations and accuracy before funding.

• Default underwriting: Analyzed loans in default to de...read more

The accounting process involves recording, classifying, and summarizing financial transactions to provide accurate financial information.

• 1. Transaction Identification: Recognizing financial transactions, such as sales or purchases.

• 2. Journal Entries: Recording transactions in journals, e.g., sales journal for sales transactions.

• 3. Ledger Posting: Transferring journal entries to the general ledger, categorizing them by ...read more

The end-to-end Accounts Payable process involves invoice receipt, approval, payment, and reconciliation.

• 1. Invoice Receipt: Collect invoices from vendors, ensuring they are properly formatted and contain necessary details.

• 2. Invoice Verification: Match invoices with purchase orders and delivery receipts to confirm accuracy.

• 3. Approval Process: Route invoices for approval based on company policies, often requiring multi...read more

Accounts payable journal entries record liabilities for goods/services received but not yet paid.

• When goods/services are received, debit the expense or asset account and credit accounts payable.

• Example: Purchasing inventory for $1,000: Debit Inventory $1,000, Credit Accounts Payable $1,000.

• When payment is made, debit accounts payable and credit cash/bank.

• Example: Paying off the $1,000 payable: Debit Accounts Payable $1...read more