CMP Cheat Sheet 2026

The 30 highest-yield CMP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A borrower is purchasing a home and the lender requires title insurance. What is the primary purpose of the lender's title insurance policy? → To protect the lender's financial interest against past title defects.
2. A veteran applying for a VA loan is receiving compensation for a service-connected disability. How does this status affect the VA Funding Fee? → The veteran is exempt from paying the funding fee.
3. What is the function of the Loan Estimate form? → To disclose estimated loan terms and costs
4. When analyzing a borrower's bank statements, which of the following would be the BIGGEST red flag for an underwriter? → Several non-sufficient funds (NSF) fees within the last 60 days
5. Which of the following is the most accurate description of pre-qualification? → An informal estimate of borrowing potential
6. Which of the following is a core responsibility of a mortgage loan processor? → Ordering and reviewing the property appraisal.
7. What is the main role of underwriting in mortgage processing? → Assessing risk and loan eligibility
8. Which automated underwriting system (AUS) is operated by Fannie Mae? → Desktop Underwriter (DU)
9. Which property classification describes a single-family home that the borrower plans to occupy as their primary residence? → Owner-occupied primary residence
10. Which communication method is most effective for urgent loan updates? → Phone or secure real-time messaging
11. Under the Fair Credit Reporting Act (FCRA), how long can a Chapter 7 bankruptcy remain on a consumer's credit report? → 10 years from filing date
12. Which credit score factor carries the most weight in the FICO scoring model? → Payment history
13. When a mortgage processor pulls a tri-merge credit report, which three credit bureaus are included? → Experian, TransUnion, and Equifax
14. What is one key requirement of the Truth in Lending Act (TILA)? → Disclose loan costs and APR to the borrower
15. What is the standard validity period for a residential mortgage credit report before it must be refreshed? → 120 days
16. Under Fannie Mae guidelines, how long must a borrower wait to qualify for a new conventional loan after a foreclosure is completed? → 7 years
17. What is the function of a title search? → To uncover title defects or encumbrances
18. Which property condition would most likely make a home ineligible for FHA financing? → The home has peeling paint, a leaking roof, or exposed electrical hazards
19. What is a mortgage-backed security (MBS) in the context of the secondary mortgage market? → A bond-like investment backed by a pool of mortgage loans
20. Which of the following is NOT a protected class under the Equal Credit Opportunity Act (ECOA)? → Credit Score
21. Which document confirms property value for the loan? → Appraisal report
22. Freddie Mac's automated underwriting system is called: → Loan Product Advisor (LPA)
23. Under Fannie Mae guidelines, which of the following is an acceptable source of gift funds for a conventional loan down payment? → A blood relative of the borrower
24. What does a Verification of Employment (VOE) document provide? → Proof of borrower’s job and salary
25. Which agency enforces mortgage lending regulations in the U.S.? → CFPB
26. What is the primary function of the secondary mortgage market? → To purchase existing mortgage loans from lenders, freeing up capital for new loans
27. When a conventional loan is sold to Fannie Mae, the originating lender typically retains the right to: → Service the loan and collect monthly payments on Fannie Mae's behalf
28. What is the minimum down payment allowed on a conventional loan for a primary residence under Fannie Mae's HomeReady program? → 3%
29. Under Fannie Mae guidelines, what is the maximum number of units allowed for a residential conforming mortgage? → 4
30. How should mortgage professionals handle client concerns? → Address issues professionally and respectfully