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

When only two scores are available, the lower of the two is used as the qualifying score per Fannie Mae and Freddie Mac guidelines.

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 rapid rescore allows a mortgage processor to submit documented account changes to the bureaus for quick score updates, often used when a borrower needs to reach a score threshold.

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

Soft inquiries, such as those from pre-qualification checks or employer background reviews, do not impact FICO scores unlike hard inquiries.

Question 4

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

Accepted Answer

120 days

Answer

Most conventional, FHA, and VA guidelines require a new credit report if the existing one is more than 120 days old at the time of closing.

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

Accounts in active dispute status can skew AUS results because they may be excluded from scoring; underwriters typically require dispute status removed or proof the account is not the borrower's.

CMP - Certified Mortgage Processor Practice Test

CMP - Certified Mortgage Processor Practice Test

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