CMA Cheat Sheet 2026

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

1. Which of the following is a key characteristic of a private-label mortgage-backed security (PLS) when compared to an agency MBS? → They typically carry a higher degree of credit risk for the investor.
2. When Fannie Mae or Freddie Mac purchases a mortgage from a lender, the lender typically retains the right to continue servicing that loan under a: → Servicing retained agreement
3. How many business days before closing must a lender provide the Closing Disclosure to the borrower? → Three business days
4. What is the primary distinction between a mortgage servicer and a mortgage lender? → The lender funds the loan, while the servicer manages it after origination
5. An underwriter is evaluating a loan application using the 'Three C's' of underwriting. Which of the following best represents the 'Capacity' component? → The borrower's debt-to-income ratio and employment stability.
6. What is a jumbo loan? → A loan exceeding the conforming loan limit
7. What is a 'funding fee' specific to VA loans, and when is it collected? → A one-time fee paid at closing, which can be financed into the loan amount
8. What is the significance of maintaining confidentiality in client communication? → To build trust and ensure client information is kept secure
9. Which of the following is MOST closely tied to the movement of 30-year fixed mortgage rates? → The yield on 10-year Treasury notes.
10. What role does a co-borrower play in mortgage underwriting? → They help improve the borrower's loan approval chances
11. Under RESPA, when a mortgage servicing transfer occurs, the borrower must receive written notice at least how many days before the effective transfer date? → 15 days
12. Why is clear communication crucial when explaining mortgage terms to clients? → To ensure clients understand the loan terms and avoid future misunderstandings
13. What is a risk analysis in mortgage underwriting? → Evaluating the borrower's financial health and loan type
14. What is the purpose of the Home Mortgage Disclosure Act (HMDA)? → To ensure transparency and monitor for discrimination
15. What is a 'dry closing'? → A closing where documents are signed but funds are disbursed at a later date
16. What is the purpose of mortgage regulations? → To protect consumers and ensure fair lending
17. What term describes an appraisal that comes in lower than the agreed purchase price? → Appraisal gap
18. What does 'market value' mean in the context of a real estate appraisal? → The most probable price a property would sell for in an arm's-length transaction
19. In a short sale, the proceeds from the sale of the property are: → Less than the outstanding mortgage balance
20. What is the purpose of a settlement statement's 'cash to close' figure? → The net amount the borrower must bring to closing after credits and down payment
21. When analyzing the total return on an investment property financed with a mortgage, the principal paydown from amortization functions as which of the following? → A form of 'forced savings' that systematically increases the owner's equity.
22. What is 'seller concessions' in a mortgage transaction? → Credits the seller pays toward the buyer's closing costs, subject to loan program limits
23. Which appraisal approach is most commonly used for income-producing properties such as apartment buildings? → Income capitalization approach
24. Under RESPA Section 8, which of the following is prohibited? → Paying or receiving kickbacks or referral fees for settlement services
25. A deed in lieu of foreclosure benefits the lender primarily by: → Avoiding the time and expense of the formal foreclosure process
26. Under conventional lending guidelines, what is the maximum back-end DTI ratio typically allowed without compensating factors? → 43%
27. Why is compliance training important in mortgage lending? → It ensures adherence to regulations and ethical standards
28. What is an example of financial advice that a mortgage advisor may provide? → Advise on budgeting for payments and choosing the best mortgage type
29. What is an escrow impound account used for at closing? → Collecting funds for property taxes and insurance payments
30. When a borrower has the right of rescission under TILA, how many business days do they have to cancel a refinance transaction on their primary residence? → 3 business days