CMC Cheat Sheet 2026

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

1. A borrower obtains a piggyback loan structure (80-10-10). What does each number represent? → First mortgage 80%, second mortgage 10%, down payment 10%
2. Which statement about interest-only (IO) loans is accurate? → The borrower builds no equity through payments during the IO period
3. When a CMC provides a Loan Estimate, federal law requires it be delivered to the applicant within: → 3 business days of receiving a completed application
4. What does the term 'seasoning' refer to in the context of mortgage lending? → The length of time assets or credit history have been established
5. A borrower's monthly PITI is $2,100 and gross monthly income is $7,000. What is their front-end ratio? → 30%
6. Which type of mortgage allows the borrower to pay only interest for an initial period before principal and interest payments begin? → Interest-only mortgage
7. Which of the following best characterizes a HELOC compared to a traditional home equity loan? → HELOC is a revolving line of credit with a variable rate
8. What distinguishes a 'portfolio loan' from a conventional conforming loan? → Portfolio loans are held by the originating lender and not sold to the secondary market
9. What is the maximum back-end DTI ratio generally permitted under standard Fannie Mae guidelines without compensating factors? → 45%
10. Which agency enforces most consumer financial protection laws? → CFPB
11. A borrower has a $500 monthly student loan currently in deferment. Under FHA guidelines, how should the underwriter treat this debt? → Include 1% of the outstanding balance as a monthly payment
12. Under RESPA, which of the following constitutes an illegal kickback in the mortgage industry? → Referring a client to a title company in exchange for a fee
13. Under TRID (TILA-RESPA Integrated Disclosures), the Closing Disclosure must be provided to the borrower at least how many business days before consummation? → 3 business days
14. What document is used to verify a borrower's employment and income directly with the IRS? → IRS Form 4506-C
15. When a CMC identifies a potential error in the loan estimate provided by the lender, the ethical duty is to: → Immediately notify the client and lender so the error can be properly corrected
16. A client wants to roll closing costs into their mortgage. Which term describes this arrangement? → No-closing-cost loan (lender credit structure)
17. The Home Mortgage Disclosure Act (HMDA) requires mortgage lenders to collect and report data primarily to: → Identify potential discriminatory lending patterns
18. A lender that offers better loan terms to a borrower in exchange for using the lender's affiliated title company, without proper disclosure, violates which law? → Real Estate Settlement Procedures Act
19. A client's loan application contains an inadvertent clerical error that would cause the client to qualify for a lower loan amount. Ethically, the CMC should: → Correct the error and resubmit accurate information
20. A property's gross rent multiplier (GRM) is 12, and the annual gross rent is $96,000. What is the estimated property value? → $1,152,000
21. Under the Dodd-Frank Act, a mortgage loan originator's compensation may NOT be based on: → The interest rate or other loan terms
22. Which of the following actions by a loan officer would constitute 'steering' under Regulation Z? → Directing a creditworthy borrower to a subprime loan because it pays higher compensation
23. Which loan type is most appropriate for a borrower purchasing a 4-unit property and planning to live in one unit? → FHA loan
24. What is the purpose of the Real Estate Settlement Procedures Act (RESPA)? → To ensure transparency in mortgage settlement processes
25. A mortgage consultant who collects advance fees from borrowers before completing any services may be violating: → The Mortgage Assistance Relief Services (MARS) Rule
26. A CMC is pressured by a real estate agent to approve a marginal borrower to save a deal. The ethical response is to: → Deny or condition the loan based solely on objective underwriting criteria
27. What is a key skill in financial advising? → Active listening and empathy
28. Which technique helps a CMC uncover unstated client concerns during an advisory meeting? → Asking open-ended discovery questions
29. A CMC's license has lapsed but a client urgently needs to close on a purchase. The ethical course of action is to: → Refer the client to a licensed colleague and immediately renew the license
30. When a lender offers a 'hybrid ARM,' what does the 'hybrid' designation specifically refer to? → A fixed-rate period at the start followed by an adjustable-rate period