CMC Client Relations and Advisory 2

Question 1

A client with a 580 credit score wants to purchase a home with 3% down. Which loan program is most appropriate to recommend?

Accepted Answer

FHA loan

Answer

Conventional loan with PMI

Answer

VA loan

Answer

USDA Rural Development loan

Question 2

During a needs assessment, a client mentions they plan to sell their home in 3–4 years. Which mortgage structure best serves this client?

Accepted Answer

5/1 ARM

Answer

30-year fixed rate

Answer

15-year fixed rate

Answer

Interest-only loan for 10 years

Question 3

A self-employed borrower cannot document income through W-2s. What alternative documentation strategy should a CMC explore first?

Accepted Answer

Bank statement loan program

Answer

State income loan application

Answer

No-doc loan

Answer

Co-signer addition

Question 4

A client asks why their Loan Estimate shows a higher APR than the stated interest rate. The CMC should explain that:

Accepted Answer

APR includes fees and costs spread over the loan term, making it higher

Answer

The lender made a calculation error

Answer

APR only reflects the lender's profit margin

Answer

The interest rate will adjust to match the APR at closing

Question 5

Which technique helps a CMC uncover unstated client concerns during an advisory meeting?

Accepted Answer

Asking open-ended discovery questions

Answer

Presenting product brochures immediately

Answer

Quoting rates before assessing needs

Answer

Limiting the meeting to 15 minutes

Question 6

A client's debt-to-income ratio is 47% on a conventional loan application. The CMC should FIRST suggest:

Accepted Answer

Paying down a revolving debt before closing to lower the DTI

Answer

Applying for a larger loan to get a better rate

Answer

Switching to a stated-income program

Answer

Adding a non-occupant co-borrower immediately

Question 7

When a client compares two loan offers with identical rates but different origination fees, the CMC should help them evaluate using:

Accepted Answer

Break-even analysis on the fee savings vs. time in home

Answer

Only the monthly payment difference

Answer

The lender with the larger company size

Answer

The loan with the higher APR