CMB Cheat Sheet 2026

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

1. When must a servicer credit a full periodic payment received from a borrower? → As of the date of receipt
2. What does the option-adjusted spread (OAS) on a mortgage asset represent? → Spread over the benchmark curve after removing the cost of the embedded prepayment option
3. Which of the following is a sign that food may have been time-temperature abused? → Food is warm to the touch.
4. Which situation would most likely trigger an early payment default (EPD) repurchase or indemnification request from an investor? → The borrower becomes seriously delinquent within the first few payments after the sale
5. Under Regulation X, the maximum cushion a servicer may hold in an escrow account is: → One-sixth of annual disbursements
6. Under the general Qualified Mortgage definition (post-2021 revision), what test replaced the 43% DTI limit? → A price-based test comparing APR to APOR
7. A loan originator is structuring a compensation plan. According to Regulation Z, which of the following methods is permissible? → A commission that is a fixed percentage of the loan amount for all transactions.
8. Why is it important to label and date data products upon receipt? → To track when the product was received.
9. When interest rates fall sharply, holders of premium-priced MBS experience: → Faster prepayments that reduce returns
10. Under HMDA, how do covered institutions report their mortgage application data each year? → On the Loan/Application Register, by March 1 for the prior calendar year
11. The revised General QM definition replaced the 43% DTI limit with which test? → A price-based limit comparing the loan's APR to the Average Prime Offer Rate
12. Under the SAFE Act, how many hours of NMLS-approved pre-licensing education must a state-licensed MLO complete? → 20 hours
13. Under ECOA/Regulation B, how soon must a creditor notify an applicant of adverse action on a completed application? → Within 30 days
14. Which instrument do mortgage bankers most commonly use to hedge a pipeline of locked conforming fixed-rate loans? → Forward sales of TBA agency MBS
15. Which piece of information is NOT one of the six items that make up a TRID 'application'? → Employer's phone number
16. Why does the value of a mortgage servicing right (MSR) typically decline when interest rates fall? → Prepayments accelerate, shortening the expected servicing fee stream
17. A property appraised at $400,000 is purchased for $380,000 with a first mortgage of $304,000 and a second lien of $38,000. What is the CLTV? → 90%
18. A hurricane takes a lender's main operations center offline. Which plan should keep loan closings and servicing running? → The business continuity and disaster recovery plan
19. A borrower sends a written request for the identity of the loan owner. How long does the servicer generally have to respond to this request? → 10 business days
20. When a complete application is received 90 or more days before a foreclosure sale and a loan modification is denied, how long does the borrower have to appeal? → 14 days
21. RESPA Section 8 primarily prohibits which practice? → Giving or accepting kickbacks and unearned fees for settlement service referrals
22. Which loss mitigation option allows a borrower to transfer title to the servicer/investor voluntarily in satisfaction of the debt, avoiding foreclosure? → Deed-in-lieu of foreclosure
23. Under Regulation B, a creditor must notify an applicant of action taken on a completed application within how many days? → 30 days
24. Which product category has grown as borrowers with low-rate first mortgages seek to tap equity without refinancing? → HELOCs and closed-end second liens
25. Which statement best describes a warehouse line's 'aging' or dwell-time limit? → Loans that stay on the line beyond a set number of days must be paid down or removed
26. Why do mortgage servicing rights (MSRs) often serve as a natural hedge to a lender's origination business? → MSR values rise when rates rise, while origination volume falls
27. Under Regulation B (ECOA), a creditor who requests information about a spouse or former spouse NOT applying for joint credit is doing so improperly UNLESS: → The applicant lives in a community property state and the income is relied upon
28. For a self-employed borrower, how many years of tax returns do conventional underwriting guidelines typically require? → Two years, though one may be allowed with strong AUS findings
29. How does the value of a mortgage servicing right (MSR) usually react when interest rates fall sharply? → It falls because expected prepayments rise and shorten the fee stream
30. A home is purchased for $400,000 and appraises at $410,000. The borrower takes a $360,000 loan. What LTV does the lender use? → 90.0%