Practice Test Geeks(CMC) Certified Mortgage Consultant Practice Test
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Professional Ethics and Conduct Flashcards

7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Professional Ethics and Conduct flashcards as text

  1. A borrower from a protected class is quoted a higher interest rate than similarly qualified non-protected borrowers. This practice is known as:

    Answer: Disparate pricing or pricing discrimination

    Charging higher rates to borrowers based on protected class characteristics is pricing discrimination, prohibited under the Fair Housing Act and ECOA.

  2. Under the Gramm-Leach-Bliley Act, a mortgage consultant must provide clients with a privacy notice:

    Answer: At the time of establishing the customer relationship

    GLB requires financial institutions to provide an initial privacy notice at the time the customer relationship is established.

  3. A CMC who discovers a colleague has been submitting fraudulent loan applications should:

    Answer: Report the conduct to appropriate authorities or supervisors per firm policy

    Professional ethics and many state laws require reporting known fraudulent conduct to supervisors or appropriate regulatory bodies.

  4. The practice of steering borrowers who qualify for prime loans into subprime products to earn higher commissions is:

    Answer: An ethical and potentially legal violation

    Steering qualified borrowers into higher-cost products for personal gain violates ethical standards and fair lending laws.

  5. When a CMC provides a Loan Estimate, federal law requires it be delivered to the applicant within:

    Answer: 3 business days of receiving a completed application

    TRID (TILA-RESPA Integrated Disclosure) requires the Loan Estimate to be delivered within 3 business days of receiving a completed loan application.

  6. A mortgage consultant who collects advance fees from borrowers before completing any services may be violating:

    Answer: The Mortgage Assistance Relief Services (MARS) Rule

    The MARS Rule prohibits collecting advance fees before successfully completing promised mortgage relief services.

  7. Ethical record-keeping for a CMC requires retaining loan application files for a minimum period mandated by:

    Answer: Federal and state regulatory requirements

    Federal and state laws specify minimum record retention periods (commonly 3–5 years) for mortgage-related documents.