Practice Test Geeks(CMC) Certified Mortgage Consultant Practice Test
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Ethics and Professional Conduct 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 Ethics and Professional Conduct flashcards as text

  1. A CMC discovers that a competing mortgage consultant is steering clients toward high-cost loans. What is the ethical obligation?

    Answer: Report the misconduct to the appropriate regulatory authority

    CMCs have an ethical duty to report known misconduct to regulators to protect consumers and the integrity of the profession.

  2. Under RESPA, which of the following constitutes an illegal kickback in the mortgage industry?

    Answer: Referring a client to a title company in exchange for a fee

    RESPA prohibits receiving fees, kickbacks, or anything of value in exchange for referrals of settlement service business.

  3. A client asks a CMC to help them qualify for a loan by slightly overstating their income. The ethical response is to:

    Answer: Decline and explain the legal and ethical consequences of mortgage fraud

    Misrepresenting income on a mortgage application constitutes fraud; a CMC must decline and educate the client about the consequences.

  4. Which ethical principle requires a CMC to recommend the loan product that best meets the client's needs rather than the one with the highest commission?

    Answer: Fiduciary duty

    Fiduciary duty obligates the CMC to act in the client's best interest, placing the client's financial welfare above personal gain.

  5. A CMC is offered tickets to a sporting event by a lender representative. At what threshold does CFPB guidance generally consider such gifts problematic?

    Answer: Any gift regardless of value raises a conflict of interest concern

    Regulatory guidance treats any gift from a lender to a referral source as potentially problematic because it may influence recommendations to consumers.

  6. Which of the following best describes the 'duty of confidentiality' for a CMC?

    Answer: Keeping client information private unless required by law or with client consent

    CMCs must protect client information and only disclose it when legally required or when the client has given informed consent.

  7. An applicant discloses they are pregnant. Under the Equal Credit Opportunity Act (ECOA), the CMC must:

    Answer: Disregard this information entirely in the credit decision

    ECOA prohibits using pregnancy or any protected characteristic as a factor in credit decisions; the CMC must ignore such information.