CRU Cheat Sheet 2026

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

1. A home inspection reveals galvanized steel pipes throughout the plumbing system. Why is this a concern for underwriters? → Galvanized pipes corrode from the inside, leading to reduced flow and eventual leaks
2. Which of the following retirement income sources is considered most stable for underwriting purposes? → Monthly pension benefit from a defined benefit plan
3. Which documentation practice best supports legal defensibility? → Objective, factual entries with specific measurements and timestamps
4. Why is payment history critical in credit scoring? → It shows repayment behavior
5. A lender has a large portfolio of adjustable-rate mortgages set to reprice next year. Rising interest rates would most likely cause: → Payment shock for borrowers if their income has not kept pace with rate increases
6. For a salaried borrower, how many years of W-2s does Fannie Mae typically require to document employment income? → Two years
7. When a market exhibits high price volatility with wide standard deviation in sales prices, an underwriter should respond by: → Requiring a larger number of comparable sales for analysis
8. A borrower had a short sale 4 years ago with a deficiency balance that was forgiven. Under standard Fannie Mae guidelines, what is the waiting period? → 4 years from the date of the short sale
9. Which form is most commonly used by appraisers for a standard single-family residential appraisal on a conventional loan? → Form 1004
10. In a rapidly appreciating market, an underwriter should be most concerned about which appraisal risk? → Comparables that lag actual market conditions
11. Under TRID (TILA-RESPA Integrated Disclosure) rules, how many business days before consummation must the Closing Disclosure be received by the borrower? → 3 business days
12. A borrower applies for a VA IRRRL (Interest Rate Reduction Refinance Loan). Which of the following is a requirement specific to this product? → The loan must reduce the borrower's monthly payment or move from an ARM to a fixed rate
13. A borrower is purchasing a 4-unit property as their primary residence using an FHA loan. What is the minimum required down payment? → 3.5%
14. How should a CRU-designated underwriter handle a conflict of interest when a close relative applies for a mortgage at their institution? → Recuse themselves and refer the file to another underwriter
15. A residential property sits on an expansive clay soil in a region known for significant seasonal soil movement. The primary underwriting concern is: → Foundation damage from soil expansion and contraction cycles
16. A VA loan's funding fee for a first-time use, active-duty veteran with a 5% down payment on a purchase transaction is: → 1.65%
17. What does a debt-to-income (DTI) ratio help determine? → Borrower's ability to repay debts
18. Under Fannie Mae guidelines, a market trend analysis must cover a minimum look-back period of: → 12 months
19. A borrower's file shows a 12-month history of on-time payments but a prior 120-day late from 3 years ago. How should the underwriter handle this? → Consider the late as a major derogatory and require a written explanation
20. What is the primary obligation of a certified professional regarding patient/client confidentiality? → Protect all personal information and disclose only with proper authorization
21. Which condition may lead to loan denial during underwriting? → Low credit score
22. What does a loan approval typically require? → Verified income, creditworthiness, and acceptable appraisal
23. Which document is used to verify a borrower's employment and income when the employer cannot be reached by phone and the borrower is a W-2 employee? → Written Verification of Employment (VOE) signed by the employer
24. Which of the following loan features would disqualify a mortgage from Qualified Mortgage (QM) status under Dodd-Frank? → Negative amortization
25. A financial institution that detects suspicious activity must file a Suspicious Activity Report (SAR) with FinCEN within: → 30 calendar days
26. Under the Fair Housing Act, which underwriting practice is explicitly prohibited? → Applying different credit standards based on the racial composition of the neighborhood
27. Which of the following is considered a red flag in credit risk assessment? → Multiple recent credit inquiries
28. An underwriter notices the appraiser used comparables located more than one mile from the subject in a dense urban neighborhood. What concern should this raise? → The distance may indicate the appraiser could not find truly comparable local sales
29. A non-occupant co-borrower is added to a conventional loan to supplement qualifying income. Which guideline restriction typically applies? → LTV may be capped at 90% when non-occupant co-borrower income is needed to qualify
30. When underwriting a home in a wildfire-prone area, the 'defensible space' around a property refers to: → A vegetation-cleared buffer zone that slows fire spread to the structure