Free CMP Mortgage Loan Origination & Processing Questions and Answers

Question 1

What is the primary responsibility of a mortgage loan processor?

Accepted Answer

Verifying documentation and preparing files for underwriting

Answer

Setting interest rates

Answer

Providing investment advice

Answer

Selling insurance policies

Question 2

Which document shows a borrower’s financial ability to repay a loan?

Accepted Answer

Uniform Residential Loan Application (URLA)

Answer

Loan estimate

Answer

Title report

Answer

Home inspection report

Question 3

What is the purpose of the loan estimate form?

Accepted Answer

To disclose loan terms and costs

Answer

To verify employment

Answer

To report income to the IRS

Answer

To authorize a property appraisal

Question 4

What is the main role of underwriting in mortgage processing?

Accepted Answer

Assessing risk and loan eligibility

Answer

Scheduling closings

Answer

Collecting signatures

Answer

Filing tax documents

Question 5

Which of the following is considered a red flag in the loan file?

Accepted Answer

Conflicting social security numbers

Answer

Consistent employment history

Answer

Matching income documents

Answer

Timely submitted application

Question 6

What must happen before a loan is cleared to close?

Accepted Answer

All underwriting conditions are satisfied

Answer

The borrower selects a moving date

Answer

The loan processor orders new documents

Answer

The appraisal is waived

Question 7

What is the function of a title search?

Accepted Answer

To uncover title defects or encumbrances

Answer

To determine the home’s market value

Answer

To list previous owners

Answer

To appraise the home

Question 8

What document does the closing disclosure replace?

Accepted Answer

HUD-1 Settlement Statement

Answer

Loan estimate

Answer

Loan application

Answer

Credit report

Question 9

Which of the following is the most accurate description of pre-qualification?

Accepted Answer

An informal estimate of borrowing potential

Answer

A guaranteed loan approval

Answer

A formal underwriting review

Answer

A closing appointment