CMB Ethics and Professional Standards in Mortgage Banking 3

Question 1

A CMB professional who receives confidential client financial information must NOT:

Accepted Answer

Disclose it to third parties for marketing or personal gain

Answer

Using confidential client information for unauthorized marketing or personal gain violates both GLBA privacy requirements and fundamental professional ethics obligations.

Question 2

Under NMLS licensing requirements, a mortgage loan originator must complete how many hours of continuing education annually to maintain licensure?

Accepted Answer

8 hours

Answer

The SAFE Act requires licensed MLOs to complete a minimum of 8 hours of NMLS-approved continuing education annually, covering federal law, ethics, lending standards, and electives.

Question 3

Which of the following scenarios most clearly represents a violation of the MBA's ethical principles regarding competence?

Accepted Answer

An MLO originates a jumbo adjustable-rate mortgage without understanding its terms and pricing

Answer

Originating a product the MLO does not understand violates the professional duty of competence, potentially harming the borrower through unsuitable product placement or inaccurate disclosures.

Question 4

A mortgage banker's duty to maintain confidentiality of borrower information continues:

Accepted Answer

Indefinitely, even after the business relationship ends

Answer

Professional and legal confidentiality obligations survive the end of the client relationship; former clients retain privacy rights over nonpublic personal information shared during the engagement.

Question 5

Under Regulation B (ECOA), a creditor who requests information about a spouse or former spouse NOT applying for joint credit is doing so improperly UNLESS:

Accepted Answer

The applicant lives in a community property state and the income is relied upon

Answer

Reg B permits spousal information requests when the applicant relies on community property income or assets and the property is in a community property state, which affects the lender's rights.

CMB - Certified Mortgage Banker Practice Test

CMB - Certified Mortgage Banker Practice Test

CMB Ethics and Professional Standards in Mortgage Banking 3