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

Question 1

Which credit scoring model is most commonly used by mortgage lenders to evaluate borrower creditworthiness?

Accepted Answer

FICO Score

Answer

VantageScore 3.0

Answer

TransUnion CreditVision

Answer

Equifax Risk Score

Question 2

When a mortgage processor pulls a tri-merge credit report, which three credit bureaus are included?

Accepted Answer

Experian, TransUnion, and Equifax

Answer

Equifax, TransUnion, and Innovis

Answer

FICO, Experian, and TransUnion

Answer

Equifax, LexisNexis, and Experian

Question 3

How is the qualifying credit score determined when there are three scores from a tri-merge credit report for a single borrower?

Accepted Answer

The middle score is used

Answer

The highest score is used

Answer

The average of all three scores is used

Answer

The lowest score is used

Question 4

What is the minimum credit score typically required for a conventional conforming loan backed by Fannie Mae?

Accepted Answer

620

Answer

580

Answer

500

Answer

660

Question 5

A mortgage credit report shows a collection account for $150. According to standard guidelines, how should the processor treat this when calculating qualifying ratios?

Accepted Answer

It can typically be ignored for conventional loans if it meets the de minimis threshold

Answer

It must always be paid off before closing

Answer

It must be disputed before closing

Answer

It automatically disqualifies the borrower

Question 6

What does a 'credit supplement' accomplish in the mortgage processing workflow?

Accepted Answer

It updates the credit report with recent account activity or corrections

Answer

It replaces the original credit report entirely

Answer

It adds an additional hard inquiry to the borrower's credit

Answer

It removes all derogatory items from the report