CAC Cheat Sheet 2026

The 30 highest-yield CAC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which document outlines a corporation's commitment to compliance standards? → Compliance policy
2. Under the SCRA, which is generally required before repossessing a servicemember's vehicle financed before entering active duty? → A court order
3. What ethical standard governs applied methods and techniques practice? → Adherence to the profession's code of ethics and applicable laws and regulations
4. Which deal-structuring adjustment most directly lowers LTV on an otherwise acceptable application? → Increasing the cash down payment
5. Why do lenders closely watch rising average loan terms (for example, 72-84 months)? → Longer terms slow equity buildup, raising negative-equity and loss-severity risk
6. Why should loan modifications and deferrals follow a written, consistently applied policy? → To ensure fair treatment and reduce fair lending and UDAAP risk
7. Why is compliance monitoring essential in contract management? → To minimize legal and operational risks
8. A customer has limited English proficiency. What is the best communication approach? → Use a qualified interpreter or translated materials and note this in the account
9. Which situation would most likely trigger a 'risk-based pricing' notice to a consumer? → The consumer receives credit terms materially less favorable based on their credit report
10. Under the Gramm-Leach-Bliley Act, when must a financial institution generally give a customer an initial privacy notice? → No later than when the customer relationship is established
11. Which situation is most likely to qualify a certificant for a temporary CE extension or hardship waiver? → Active military deployment or documented serious illness during the cycle
12. A vehicle has a book value of $15,000 and the amount financed is $18,000. What is the loan-to-value (LTV) ratio? → 120%
13. Two evaluators score the same work samples and get very different results. Which type of reliability is weak? → Inter-rater reliability
14. What is the best practice for handling credit scorecard overrides? → Document the reason and monitor override performance over time
15. Which technique best verifies an applicant's stated income when pay stubs look questionable? → Contact the employer directly using an independently sourced phone number
16. Which applicant characteristic generally signals greater stability and lower credit risk? → Five or more years at the same residence
17. Why are internal audits critical for maintaining compliance? → To detect compliance gaps
18. Under Regulation Z, which disclosure must appear on a retail installment contract for a closed-end auto loan? → The Annual Percentage Rate (APR)
19. Which item is calculated as gross charge-offs minus recoveries? → Net charge-offs
20. Which skip-tracing method is generally the most appropriate first step for locating a borrower who stopped responding? → Review the application's references and contact data, then search permissible databases
21. What ethical standard governs communication and documentation practice? → Adherence to the profession's code of ethics and applicable laws and regulations
22. What quality assurance measure supports safety and compliance? → Regular self-assessment, peer review, and adherence to established standards
23. Which standard is most commonly referenced for establishing sampling procedures and tables for inspection by attributes in US acceptance practices? → ANSI/ASQ Z1.4
24. Which term describes how consistently an assessment produces the same results under the same conditions? → Reliability
25. Under a portfolio-style dealer program, what is a 'dealer holdback'? → Collections retained beyond the advance that may later be paid to the dealer
26. A professional earned CE hours before their initial certification date. Generally, do those hours count toward the first renewal cycle? → No, CE generally must be earned within the active cycle
27. Under the FDCPA, unless the consumer agrees otherwise, which hours are presumed convenient for contacting a consumer? → 8 a.m. to 9 p.m. in the consumer's local time
28. Which financial statement shows a company's assets, liabilities, and equity at a single point in time? → Balance sheet
29. What is a best practice for dealer relationship management at an indirect auto lender? → Screen dealers before onboarding and track their portfolio performance and compliance
30. What does 'UDAAP' stand for in consumer financial regulation? → Unfair, Deceptive, or Abusive Acts or Practices