CMP CMP - Certified Mortgage Processor Credit Analysis and Credit Reports Questions and Answers 2

Question 1

A borrower has two scores from the tri-merge report because one bureau returned no score. Which score is used to qualify?

Accepted Answer

The lower of the two scores

Answer

The higher of the two scores

Answer

The average of the two scores

Answer

A new credit report must be ordered

Question 2

What is a 'rapid rescore' and when would a mortgage processor request one?

Accepted Answer

An expedited update to credit bureau records that reflects recent payoffs or corrections, improving the score quickly

Answer

A process to dispute fraudulent accounts across all three bureaus simultaneously

Answer

A request to the lender to waive minimum credit score requirements

Answer

An automatic score recalculation done every 30 days by FICO

Question 3

Which type of inquiry on a credit report does NOT affect a borrower's FICO score?

Accepted Answer

A soft inquiry from a pre-qualification check

Answer

A mortgage application inquiry

Answer

A hard inquiry from an auto loan application

Answer

A hard inquiry from a credit card application

Question 4

What is the standard validity period for a residential mortgage credit report before it must be refreshed?

Accepted Answer

120 days

Answer

30 days

Answer

60 days

Answer

90 days

Question 5

A borrower disputes a derogatory account on their credit report during loan processing. How should the processor handle this?

Accepted Answer

Follow AUS and lender guidelines — disputed accounts may need to be removed from dispute status for accurate underwriting

Answer

Proceed with the disputed account included in the qualifying decision

Answer

Cancel the application until the dispute is resolved

Answer

Ignore the dispute and close the loan

Question 6

What is the purpose of a Mortgage Only credit report versus a tri-merge report?

Accepted Answer

It is a limited report pulled mid-transaction to verify no new credit has been opened

Answer

It reports only on the current mortgage balance

Answer

It is a single-bureau report used only for refinances

Answer

It shows all tradelines but is issued only after loan approval