Practice Test Geeks(CMC) Certified Mortgage Consultant Practice Test
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Client Relations and Advisory Flashcards

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

Read the first 7 Client Relations and Advisory flashcards as text

  1. A first-time homebuyer is overwhelmed by the mortgage process. What is the most effective first step a CMC should take?

    Answer: Conduct a structured financial education session to set expectations

    Educating first-time buyers about the process reduces anxiety, builds trust, and leads to more accurate information gathering throughout the transaction.

  2. A client reveals they recently had a bankruptcy discharged 18 months ago. Which loan type has the shortest seasoning requirement for this situation?

    Answer: VA

    VA loans require only a 2-year seasoning period after Chapter 7 bankruptcy discharge, which is among the shortest of any loan type.

  3. Which disclosure must a lender provide to a borrower within three business days of receiving a mortgage application?

    Answer: Loan Estimate

    TRID rules under RESPA and TILA require lenders to deliver the Loan Estimate within three business days of application receipt.

  4. A client is considering a cash-out refinance to consolidate high-interest credit card debt. The CMC's ethical responsibility includes:

    Answer: Disclosing that unsecured debt becomes secured by the home, increasing foreclosure risk

    Ethical advisory requires informing clients that converting unsecured debt to home-secured debt puts their property at risk if they cannot make payments.

  5. What does a CMC use a tri-merge credit report for during the advisory process?

    Answer: To review scores from all three bureaus and identify the qualifying middle score

    A tri-merge report pulls Equifax, Experian, and TransUnion scores simultaneously, and lenders use the middle score of the three for qualification decisions.

  6. A client wants to avoid PMI on a conventional loan but only has 10% down. Which strategy should the CMC explore?

    Answer: Use a piggyback (80/10/10) loan structure

    An 80/10/10 structure uses a first mortgage for 80%, a second mortgage for 10%, and 10% down, eliminating the need for PMI on the primary loan.

  7. During a refinance consultation, a client states their primary goal is the lowest possible monthly payment. The CMC should FIRST ask:

    Answer: How long do you plan to stay in the home?

    Knowing the client's intended time horizon helps determine whether extending the loan term makes financial sense or merely defers interest costs without net benefit.