CMB - Certified Mortgage Banker Technology and Digital Mortgage Solutions Questions and Answers Flashcards
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Read the first 6 CMB - Certified Mortgage Banker Technology and Digital Mortgage Solutions Questions and Answers flashcards as text
What is eClosing in the mortgage industry?
Answer: A closing process that uses electronic documents and signatures, partially or fully replacing paper
eClosing refers to a mortgage closing process where some or all documents are signed electronically, ranging from hybrid (some e-signatures) to fully remote online notarization.
What is Remote Online Notarization (RON) and why is it significant for mortgage closings?
Answer: A process allowing a notary to notarize documents via audio-visual technology without in-person presence
RON allows a notary public to perform notarizations via secure audio-visual technology, enabling fully remote mortgage closings without requiring borrowers to physically appear.
In the context of mortgage technology, what does a Loan Origination System (LOS) primarily manage?
Answer: The end-to-end workflow of originating a mortgage from application through closing
A LOS manages the entire origination workflow including application intake, processing, underwriting, closing preparation, and funding, serving as the system of record for the loan file.
What is a digital mortgage 'decisioning engine' used for?
Answer: Automating credit policy rules to provide real-time loan eligibility decisions
A decisioning engine applies a lender's credit policy rules automatically to loan data, delivering instant eligibility or pricing decisions without manual underwriter review.
Which technology advancement allows borrowers to verify employment and income instantly without providing paper documents?
Answer: Day 1 Certainty / GSE direct data services using payroll data integrations
Fannie Mae's Day 1 Certainty and Freddie Mac's similar programs use direct payroll and bank data integrations to verify income and assets digitally, providing representation and warranty relief.
What cybersecurity threat specifically targets the mortgage industry through fraudulent wire transfer instructions sent via email?
Answer: Business Email Compromise (BEC) / wire fraud
Business Email Compromise (BEC) wire fraud involves criminals intercepting or spoofing email communications to redirect mortgage closing funds to fraudulent accounts.