Loan Officer Practice Exam

In the "About Your Finances" section of the URLA, how many years must a borrower indicate if they have conveyed title to any property in lieu of foreclosure?

1. seven

2. ten

3. five

4. three

The correct answer is: seven

In the "About Your Finances" section of the Uniform Residential Loan Application (URLA), borrowers are required to disclose any circumstances that might impact their ability to repay a loan. When it comes to conveying title to any property in lieu of foreclosure, the borrower must indicate such information for a period of seven years. This requirement is in place to provide lenders with insight into the borrower’s financial history and stability. Lenders consider this period significant because it allows them to evaluate the borrower's past financial behavior and the potential risk involved in extending credit. The seven-year disclosure aligns with the reporting period for foreclosures on a credit report, ensuring that lenders have a complete view of the borrower's financial background.