Practice Test Geeks(CMC) Certified Mortgage Consultant Practice Test
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Professional Ethics and Conduct 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 Professional Ethics and Conduct flashcards as text

  1. A mortgage consultant discovers mid-process that a competing lender offers a significantly better rate for the client's situation. What is the ethical obligation?

    Answer: Disclose the better option to the client and discuss alternatives

    CMC ethics require placing client interests above personal or business interests, which includes disclosing material information like better available rates.

  2. Under RESPA, which of the following is strictly prohibited for a mortgage consultant?

    Answer: Accepting a referral fee from a title company for steering clients

    RESPA Section 8 prohibits kickbacks and unearned fees, including referral fees between settlement service providers.

  3. A client asks a CMC to help them state a higher income on the loan application to qualify for a larger mortgage. The consultant should:

    Answer: Refuse and explain that income misrepresentation is mortgage fraud

    Falsifying income on a mortgage application constitutes mortgage fraud, a federal crime that the consultant must refuse regardless of client pressure.

  4. When a CMC has a personal financial interest in a property a client is purchasing, what must occur?

    Answer: Full disclosure of the conflict must be made to the client in writing

    Material conflicts of interest must be disclosed in writing so clients can make informed decisions about representation.

  5. The Equal Credit Opportunity Act (ECOA) prohibits mortgage consultants from discriminating based on which of the following?

    Answer: Marital status or national origin

    ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.

  6. A client's loan application contains an inadvertent clerical error that would cause the client to qualify for a lower loan amount. Ethically, the CMC should:

    Answer: Correct the error and resubmit accurate information

    Accuracy and integrity require correcting errors regardless of financial impact to the consultant.

  7. Which practice best demonstrates a CMC's commitment to continuing professional competence?

    Answer: Completing ongoing education and staying current on regulatory changes

    Continuous education ensures consultants remain competent as products, regulations, and market conditions evolve.