CMP - Certified Mortgage Processor Government Loan Programs (FHA/VA) Questions and Answers

Question 1

A veteran applying for a VA loan is receiving compensation for a service-connected disability. How does this status affect the VA Funding Fee?

Accepted Answer

The veteran is exempt from paying the funding fee.

Answer

The fee is reduced by 50%.

Answer

The fee is deferred until the loan is paid off.

Answer

The fee is financed into the loan at a lower interest rate.

Question 2

What is the primary purpose of the Certificate of Eligibility (COE) in the VA loan process?

Accepted Answer

It verifies to the lender that the applicant has the required service history for a VA loan.

Answer

It guarantees the lender against any loss on the loan.

Answer

It specifies the maximum loan amount the veteran is approved for.

Answer

It serves as the official appraisal of the subject property.

Question 3

When processing an FHA loan, the processor notes that the Upfront Mortgage Insurance Premium (UFMIP) needs to be paid. Which of the following is the most common way this premium is handled?

Accepted Answer

It is financed into the total loan amount.

Answer

It is paid directly by the seller as a concession.

Answer

It is paid out-of-pocket by the real estate agents.

Answer

It is waived for all first-time homebuyers.

Question 4

A borrower is purchasing a home with an FHA loan. The sales contract is for $250,000, but the appraisal values the property at $245,000. Which FHA-specific document protects the borrower's earnest money in this situation?

Accepted Answer

FHA Amendatory Clause / Real Estate Certification

Answer

Notice to Homebuyer

Answer

Informed Consumer Choice Disclosure

Answer

Good Faith Estimate

Question 5

A loan processor is qualifying a borrower for a VA loan. In addition to the standard debt-to-income (DTI) ratio, what unique VA calculation must be performed to determine if the borrower has sufficient income to cover living expenses after their mortgage and other debts are paid?

Accepted Answer

Residual Income Analysis

Answer

Housing Expense Ratio

Answer

Net Tangible Benefit Test

Answer

Asset Depletion Calculation

Question 6

A loan applicant has a FICO score of 590 and has saved enough for a 4% down payment. They were denied for a conventional loan. Which government loan program would be the most suitable alternative for this borrower?

Accepted Answer

FHA Loan

Answer

USDA Rural Development Loan

Answer

VA Loan

Answer

Conventional High-Balance Loan

A veteran applying for a VA loan is receiving compensation for a service-connected disability.How does this status affect the VA Funding Fee?

A veteran applying for a VA loan is receiving compensation for a service-connected disability.
How does this status affect the VA Funding Fee?