CMPS Client Assessment & Loan Structuring 3

Question 1

A married couple files taxes jointly and one spouse has significant student loan debt in income-driven repayment. How should the planner calculate the monthly debt obligation for DTI purposes?

Accepted Answer

Use the actual IDR payment shown on credit report

Answer

Use 1% of the student loan balance

Answer

Ignore deferred student loans entirely

Answer

Use 2% of the student loan balance

Question 2

What is the primary purpose of conducting a financial needs analysis before recommending a mortgage product?

Accepted Answer

To understand the client's complete financial picture and recommend the most suitable product

Answer

To meet compliance requirements for loan origination

Answer

To determine the maximum loan amount the client qualifies for

Answer

To satisfy underwriting documentation requirements

Question 3

A borrower receives annual bonuses that represent 30% of their total compensation. How should this income be treated for qualification?

Accepted Answer

Average the bonus income over 2 years if it has a 2-year history and is likely to continue

Answer

Exclude bonus income entirely as it is not guaranteed

Answer

Include 100% of the most recent year's bonus

Answer

Use 50% of the most recent bonus only

Question 4

Which of the following is a key indicator that a client may benefit from a cash-out refinance rather than a HELOC?

Accepted Answer

The client wants a fixed rate and a lump sum for a specific one-time expense

Answer

The client needs ongoing access to funds over several years

Answer

The client prefers interest-only payments initially

Answer

The client's home has appreciated significantly but they have no specific use for the funds

Question 5

A client's net worth statement shows significant assets but low documented income. Which loan option is most appropriate to explore?

Accepted Answer

Asset depletion or asset-based income qualification

Answer

FHA loan with gift funds

Answer

VA loan with co-borrower

Answer

USDA guaranteed loan

Question 6

When reviewing a client's credit report, which factor has the greatest weight in FICO score calculation?

Accepted Answer

Payment history

Answer

Length of credit history

Answer

Credit mix

Answer

New credit inquiries

Question 7

A borrower has two mortgages: a primary residence and a rental property. How should the rental income be treated in a new loan application?

Accepted Answer

Rental income may be used if documented on Schedule E with a 2-year history, net of expenses

Answer

Rental income is always excluded from qualifying income

Answer

100% of rental income shown on the lease agreement can be used

Answer

Rental income can only be used if the property has no mortgage