Practice Test Geeks(CMC) Certified Mortgage Consultant Practice Test
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Client Relations and Financial 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 Financial Advisory flashcards as text

  1. A first-time homebuyer has limited savings. Which loan program allows the lowest minimum down payment for a conforming conventional loan?

    Answer: 3%

    Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow conventional loans with as little as 3% down for qualifying borrowers.

  2. A client asks about Private Mortgage Insurance (PMI). When is a borrower legally entitled to request PMI cancellation on a conventional loan?

    Answer: When the loan balance reaches 80% LTV based on original value and the borrower is current

    Under the Homeowners Protection Act, borrowers can request PMI cancellation when the loan-to-value ratio reaches 80% based on the original purchase price or appraised value.

  3. A client is considering a bridge loan to purchase a new home before selling their current one. What is the primary risk the consultant should communicate?

    Answer: The client may carry two mortgage payments if the current home doesn't sell quickly

    The biggest risk of a bridge loan is carrying payments on both the current and new properties if the original home takes longer than expected to sell.

  4. Which component of the FICO score has the greatest weight in the scoring model?

    Answer: Payment history

    Payment history accounts for approximately 35% of a FICO score, making it the single most influential factor in credit scoring.

  5. A client who is a veteran asks about VA loan benefits. Which of the following is a unique advantage of a VA loan?

    Answer: No requirement for mortgage insurance regardless of down payment

    VA loans do not require private mortgage insurance at any loan-to-value ratio, which is a significant financial benefit compared to conventional and FHA loans.

  6. During a client consultation, the client mentions they are going through a divorce. How should this information affect the mortgage consultant's advisory process?

    Answer: It may affect income, assets, and liabilities — all relevant to loan qualification

    Divorce can impact qualifying income (alimony/child support), asset division, and existing joint liabilities, all of which directly affect mortgage qualification.

  7. A client wants to roll closing costs into their mortgage. Which term describes this arrangement?

    Answer: No-closing-cost loan (lender credit structure)

    A no-closing-cost loan uses lender credits (usually via a slightly higher interest rate) to offset closing costs rather than requiring cash at closing.