CMA - Certified Mortgage Advisor Loan Origination Process Questions and Answers

Question 1

A borrower receives a Closing Disclosure (CD) from their lender.
Three days later, but before closing, the lender discovers a tolerance violation that requires a refund to the borrower.
Which of the following is the correct procedure for the lender to follow?

Accepted Answer

A new 3-day waiting period is not required, and the correction can be shown on a revised CD provided at closing.

Answer

Issue a revised Closing Disclosure with the correction and proceed to closing as scheduled.

Answer

Delay the closing, issue a new CD, and start a new 3-day waiting period.

Answer

Cancel the loan and require the borrower to re-apply.

Question 2

During the loan origination process, which professional is primarily responsible for evaluating the borrower's risk profile, verifying application data, and making the final credit decision?

Accepted Answer

Loan Underwriter

Answer

Loan Processor

Answer

Appraiser

Answer

Mortgage Loan Originator

Question 3

A self-employed borrower is applying for a mortgage. In addition to the standard documentation like bank statements and photo ID, which of the following documents would a lender most likely require to verify their income?

Accepted Answer

Two years of personal and business tax returns, along with a current profit and loss statement.

Answer

A letter from their previous employer.

Answer

Copies of their business marketing materials.

Answer

Their most recent 30 days of client invoices.

Question 4

Which of the following represents the correct sequence of major milestones in the typical mortgage loan origination process?

Accepted Answer

Pre-approval, Application, Underwriting, Closing

Answer

Closing, Underwriting, Application, Pre-approval

Answer

Application, Closing, Processing, Underwriting

Answer

Processing, Pre-approval, Closing, Application

Question 5

A first-time homebuyer is working with a Certified Mortgage Advisor (CMA). They find a home and submit a complete loan application on Monday. According to the Real Estate Settlement Procedures Act (RESPA), by which day must the lender provide the borrower with a Loan Estimate?

Accepted Answer

Thursday of the same week

Answer

Tuesday of the same week

Answer

Monday of the following week

Answer

At the time of closing

Question 6

During loan processing, the lender orders a title search. What is the primary purpose of this action?

Accepted Answer

To ensure the seller has the legal right to sell the property and to identify any liens or claims.

Answer

To determine the property's market value.

Answer

To verify the borrower's credit history.

Answer

To calculate the borrower's debt-to-income ratio.