CMA Cheat Sheet 2026

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

1. What is the purpose of a 4506-C (formerly 4506-T) form in mortgage underwriting? → To authorize the IRS to release tax transcripts to the lender for income verification
2. Which of the following is a key characteristic of a private-label mortgage-backed security (PLS) when compared to an agency MBS? → They typically carry a higher degree of credit risk for the investor.
3. Under the Americans with Disabilities Act (ADA) and fair lending laws, a lender may NOT deny a mortgage application because a borrower's income is derived from: → Social Security Disability Insurance (SSDI) benefits
4. When Fannie Mae or Freddie Mac purchases a mortgage from a lender, the lender typically retains the right to continue servicing that loan under a: → Servicing retained agreement
5. Under TRID, the Loan Estimate must be delivered to the applicant within how many business days of receiving a complete application? → 3 business days
6. How many business days before closing must a lender provide the Closing Disclosure to the borrower? → Three business days
7. What is the primary distinction between a mortgage servicer and a mortgage lender? → The lender funds the loan, while the servicer manages it after origination
8. An underwriter is evaluating a loan application using the 'Three C's' of underwriting. Which of the following best represents the 'Capacity' component? → The borrower's debt-to-income ratio and employment stability.
9. Which law requires mortgage servicers to maintain escrow accounts for taxes and insurance when the LTV exceeds 80% on conventional loans? → RESPA
10. Which Federal Reserve tool most directly influences short-term interest rates in the US? → Federal funds rate target
11. The 'margin' in an adjustable-rate mortgage is best described as: → The lender's fixed markup added to the index to determine the interest rate
12. A mortgage loan originator is required to provide the Loan Estimate to a borrower within how many business days of receiving a completed application? → 3 business days
13. What is a jumbo loan? → A loan exceeding the conforming loan limit
14. What is a 'funding fee' specific to VA loans, and when is it collected? → A one-time fee paid at closing, which can be financed into the loan amount
15. Under the SAFE Act, which of the following individuals is required to obtain an NMLS license as a Mortgage Loan Originator? → An independent mortgage broker who takes residential loan applications for compensation
16. How does mortgage interest deductibility primarily benefit a real estate investor's wealth-building strategy? → It reduces taxable rental income, improving after-tax cash flow
17. What is the significance of maintaining confidentiality in client communication? → To build trust and ensure client information is kept secure
18. Which of the following is MOST closely tied to the movement of 30-year fixed mortgage rates? → The yield on 10-year Treasury notes.
19. What does the PSA prepayment model assume about prepayment speeds in the first 30 months of a mortgage pool? → Prepayments ramp up from 0% CPR to 6% CPR linearly
20. What role does a co-borrower play in mortgage underwriting? → They help improve the borrower's loan approval chances
21. Under RESPA, when a mortgage servicing transfer occurs, the borrower must receive written notice at least how many days before the effective transfer date? → 15 days
22. Why is clear communication crucial when explaining mortgage terms to clients? → To ensure clients understand the loan terms and avoid future misunderstandings
23. The Federal Open Market Committee (FOMC) meets approximately how many times per year to set monetary policy? → 8
24. A homeowner with significant equity takes out a HELOC to invest in index funds. Which factor most increases the risk of this strategy? → The HELOC has a variable interest rate that could rise
25. What is a risk analysis in mortgage underwriting? → Evaluating the borrower's financial health and loan type
26. What is the purpose of the Home Mortgage Disclosure Act (HMDA)? → To ensure transparency and monitor for discrimination
27. A loan officer collects a $500 application fee before providing the Loan Estimate. Under TRID rules, this practice is: → Permitted only for credit report fees
28. Which of the following income types requires a two-year history and continuation for at least three years to be used in qualifying? → Self-employment income
29. What is a 'dry closing'? → A closing where documents are signed but funds are disbursed at a later date
30. Under the SAFE Act, which entity maintains the Nationwide Multistate Licensing System (NMLS)? → The Conference of State Bank Supervisors (CSBS)