CMC Client Relations and Advisory 3

Question 1

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

Accepted Answer

Conduct a structured financial education session to set expectations

Answer

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

Question 2

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

Accepted Answer

VA

Answer

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

Question 3

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

Accepted Answer

Loan Estimate

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(CMC) Certified Mortgage Consultant Practice Test

(CMC) Certified Mortgage Consultant Practice Test

CMC Client Relations and Advisory 3