CMA Study Guide 2026

In an economic downturn or recession, the Federal Reserve's typical response is to lower the federal funds rate. This action makes borrowing cheaper for banks, and these savings are generally passed on to consumers and businesses, leading to lower mortgage rates. The goal is to encourage borrowing and spending to stimulate economic growth.

A mortgage is typically reported as delinquent and triggers servicer action protocols when a payment is 30 days past the contractual due date.

Market value is the most probable price a property would fetch in a competitive, open market under fair conditions between informed parties.

A 'clear to close' is issued by the underwriter once all loan conditions and prior-to-close (PTC) conditions have been satisfied.

FHA guidelines require a minimum 580 FICO score for the 3.5% down payment option; scores between 500–579 require 10% down.

According to the TRID rule, a new three-business-day waiting period for the Closing Disclosure is required if there is a change to the loan product, the APR becomes inaccurate (generally a change of more than 1/8 of a percent for fixed-rate loans), or a prepayment penalty is added. A decrease in the loan amount, a seller credit, or a small decrease in the APR would not typically trigger a new waiting period.