Client Relations and Advisory Flashcards
7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Client Relations and Advisory flashcards as text
A client relocating for work must close within 21 days. Which CMC action is most critical to meeting this timeline?
Answer: Immediately submitting a complete application package to avoid underwriting delays
Submitting a fully complete application upfront eliminates conditions requests, which are the most common cause of underwriting delays on compressed timelines.
A client is torn between paying discount points to lower their rate or keeping cash for home improvements. What framework should the CMC use to advise them?
Answer: Calculate the break-even period and compare it to the client's expected loan life
The break-even calculation divides the point cost by the monthly payment savings; if the client stays beyond that period, paying points is financially beneficial.
Under the Fair Housing Act, a CMC must NOT vary loan terms based on a borrower's:
Answer: National origin
The Fair Housing Act prohibits discrimination in mortgage lending based on national origin, race, color, religion, sex, disability, or familial status.
A veteran client wants to purchase a $650,000 home with no down payment. Which loan type should the CMC explore first?
Answer: VA loan using full entitlement
Eligible veterans can use their full VA entitlement to purchase a home with zero down payment and no loan limit (post-2020), subject to lender and county guidelines.
What is the significance of the three-day waiting period after delivery of the Closing Disclosure?
Answer: It gives the borrower time to review final terms before being legally bound to close
The mandatory three-business-day review period under TRID ensures borrowers can identify discrepancies between estimated and final costs before signing.
A client's file shows a large deposit in their bank account two months ago. Underwriting flags it as an 'untraceable large deposit.' The CMC should advise the client to:
Answer: Provide a written explanation and sourcing documentation for the deposit
Underwriters require a paper trail for large non-payroll deposits; a letter of explanation with supporting documents (gift letter, sale receipt, etc.) resolves the condition.
A long-term client refers a friend who ultimately does not qualify for a loan. How should the CMC handle the relationship going forward?
Answer: Provide a decline explanation, a credit improvement roadmap, and schedule a follow-up in 6 months
Treating declined applicants with care and a future action plan preserves the relationship, demonstrates professionalism, and often converts them into future clients.