Practice Test Geeks(CMA) Certified Mortgage Advisor Practice Test
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Advisor Ethics and Communication Flashcards

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

Read the first 7 Advisor Ethics and Communication flashcards as text

  1. A client who is a non-English speaker receives loan documents only in English. From an ethics standpoint, the advisor should:

    Answer: Offer translated documents or a qualified interpreter to ensure comprehension

    Ensuring a client understands loan terms is an ethical obligation regardless of language barriers, and CFPB guidance supports providing translated materials.

  2. The Truth in Lending Act (TILA) requires that the Annual Percentage Rate (APR) be disclosed to borrowers primarily to:

    Answer: Allow borrowers to meaningfully compare the true cost of credit across loan offers

    APR disclosure under TILA standardizes cost representation so consumers can make informed comparisons between competing loan offers.

  3. An advisor is pressured by a real estate agent to approve a client's loan quickly to meet a closing date, even though the file has outstanding verification issues. The advisor should:

    Answer: Advise the client to renegotiate the closing date and comply with underwriting requirements

    Advisors must not allow external deadlines to compromise underwriting integrity; the proper response is to seek a timeline extension.

  4. Which of the following best describes the ethical principle of 'non-maleficence' as applied to mortgage advising?

    Answer: Avoiding actions that place the client in a harmful financial position

    Non-maleficence in financial advising means avoiding recommendations or actions that could cause foreseeable financial harm to the client.

  5. A mortgage advisor is approached by a developer offering a bonus for every buyer referred to their new construction project. Accepting this arrangement would most directly violate:

    Answer: RESPA's prohibition on kickbacks and unearned fees

    RESPA Section 8 prohibits giving or receiving fees, kickbacks, or things of value in exchange for referrals of settlement service business.

  6. When a borrower's application is denied, ethical communication requires the advisor to:

    Answer: Provide a written adverse action notice stating the specific reasons for denial

    ECOA and the Fair Credit Reporting Act require a written adverse action notice citing specific denial reasons so borrowers can understand and address deficiencies.

  7. A client asks their advisor to provide a 'pre-approval letter' but the advisor has not yet verified the client's income or assets. The ethical course of action is to:

    Answer: Issue a pre-qualification letter with clear language indicating it is unverified

    Using accurate terminology (pre-qualification vs. pre-approval) prevents misleading clients and sellers about the borrower's verified creditworthiness.