CHCP Cheat Sheet 2026

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

1. Which of the following statements is TRUE about a 'chain of title'? → It is a chronological history of all recorded instruments affecting a property
2. In the context of CHCP certification, what is the most important consideration when implementing mortgage processing & underwriting? → Ensuring alignment with established standards, stakeholder needs, and best practices
3. A property appraisal comes in $15,000 below the purchase price. How does this typically affect underwriting? → The loan is based on the appraised value, requiring the borrower to cover the shortfall
4. Which type of title insurance policy is designed specifically to protect the lender's interest in the property? → Loan policy (mortgagee's policy)
5. A seller credit of $3,000 toward closing costs is entered on the Closing Disclosure as: → A debit to the seller and a credit to the buyer
6. A title search reveals a 15-year-old federal tax lien against a prior owner who conveyed the property 12 years ago. What is the typical resolution? → Require a release or discharge from the IRS before insuring
7. Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of a loan application? → TILA-RESPA Integrated Disclosure (TRID)
8. Which behavior most undermines client trust during the closing process? → Making promises about outcomes you cannot guarantee
9. When wiring seller proceeds after closing, what is the MOST critical verification step to prevent fraud? → Verify wire instructions verbally with the seller using a known phone number on file
10. Which party typically pays the owner's title insurance premium in states where there is no established custom? → It is negotiable between buyer and seller
11. What is 'SMART Doc' technology in the context of digital mortgage documents? → An XML-based document format that embeds data within the document itself
12. What is the purpose of the Fair Housing Act? → Prohibit housing discrimination
13. Which form of property ownership gives the owner the most complete bundle of rights with no conditions or limitations? → Fee simple absolute
14. In escrow, the term 'proration' at closing most commonly applies to: → Dividing ongoing expenses like property taxes and HOA dues based on closing date
15. Private Mortgage Insurance (PMI) is typically required when a conventional loan has a loan-to-value ratio exceeding what percentage? → 80%
16. An IRS Form 1099-S is required at closing primarily to report: → Proceeds from real estate transactions to the IRS
17. A notice of lis pendens provides constructive notice that: → Litigation is pending that may affect title to the property
18. A buyer's lender requires a specific dollar amount of hazard insurance coverage. What minimum coverage amount is typically required? → At least 100% of the replacement cost of improvements
19. When communicating closing timelines to clients, which approach builds the most trust? → Provide a realistic range with identified contingencies and commit to regular updates
20. Which endorsement added to an owner's title policy would protect against a zoning law violation existing at the date of policy? → ALTA 3 Zoning endorsement
21. Which line on the seller's settlement statement shows money the seller receives after all debits and credits are calculated? → Net proceeds to seller
22. Which of the following best describes a key competency required for property survey & boundary issues in CHCP practice? → Strong analytical skills combined with effective communication and ethical judgment
23. The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against applicants based on all of the following EXCEPT: → Credit score and payment history
24. When a couple holds property as joint tenants with right of survivorship, what happens upon the death of one joint tenant? → The surviving joint tenant automatically inherits the deceased's share outside of probate
25. Which party typically pays for the lender's title insurance policy in a standard US residential transaction? → The buyer, as a condition of obtaining the mortgage loan
26. Under state usury laws, what do lenders risk if they charge interest rates exceeding the legal maximum? → The loan may be voided and the lender may forfeit interest collected
27. Recording fees for the deed are customarily charged to which party on the settlement statement? → The buyer
28. A client sends an angry email late at night about a closing error. When is the appropriate time to respond? → The next business morning, with a prompt, professional, and solution-focused reply
29. Which deed is most commonly used between family members or to resolve title defects? → Quitclaim deed
30. At closing, the 'right of rescission' under TILA allows a borrower to cancel which type of loan within three business days? → A refinance or home equity loan on a primary residence