CMPS CMPS Credit Analysis and Underwriting Standards Questions and Answers

Question 1

What is the maximum debt-to-income (DTI) ratio typically allowed for a conventional conforming loan under standard Fannie Mae guidelines?

Accepted Answer

50%

Answer

36%

Answer

43%

Answer

45%

Question 2

Which credit score model is most commonly used by mortgage lenders when evaluating a borrower's creditworthiness?

Accepted Answer

FICO Score 2/4/5 (Classic)

Answer

VantageScore 3.0

Answer

FICO Score 8

Answer

Experian PLUS Score

Question 3

When a lender uses the 'middle score' rule for a joint mortgage application, which score is selected?

Accepted Answer

The middle of each borrower's three bureau scores, then the lowest of those middles

Answer

The highest score among all borrowers

Answer

The average of all six bureau scores

Answer

The primary borrower's highest score

Question 4

A borrower has a 30-day late payment on a credit card 14 months ago. Under standard FHA underwriting guidelines, this will most likely:

Accepted Answer

Require a letter of explanation but not disqualify

Answer

Automatically disqualify the borrower

Answer

Add 50 basis points to the rate

Answer

Require 12 months of perfect payment history before approval

Question 5

What does a 'tri-merge' credit report provide that a single-bureau report does not?

Accepted Answer

Trade lines from all three major bureaus combined into one report

Answer

Higher credit scores due to averaging

Answer

Access to FICO Score 10

Answer

Insurance risk scores alongside credit scores

Question 6

Which factor carries the greatest weight in calculating a FICO credit score?

Accepted Answer

Payment history (35%)

Answer

Length of credit history (15%)

Answer

Credit mix (10%)

Answer

Amounts owed (30%)