Certified Mortgage Advisor (CMA)

Question 1

A client is struggling to meet the income requirements for a loan. They tell their Certified Mortgage Advisor (CMA) that they plan to temporarily deposit a large sum of money from a personal loan into their bank account and have a relative sign a gift letter stating it does not need to be repaid. What is the CMA's most ethical and legally sound response?

Advise the client that misrepresenting the source of funds constitutes mortgage fraud and refuse to proceed with the application in that manner. Suggest the client wait until the funds have been 'seasoned' in their bank account for at least 60 days before applying. Proceed with the application but make a private note in the file about the source of the funds for internal records only. Provide the client with a standard gift letter template and advise them to have the relative sign it.

Correct Answer:

Advise the client that misrepresenting the source of funds constitutes mortgage fraud and refuse to proceed with the application in that manner.

Question 2

The ethical framework for a Certified Mortgage Advisor is built on a primary commitment to act in the client's best interest, placing their needs above the advisor's own. This principle is best described as:

A transactional duty A fiduciary responsibility A profit-maximization objective A regulatory compliance standard

Correct Answer:

A fiduciary responsibility

Question 3

Which of the following marketing communication arrangements between a mortgage advisor and a real estate agent is MOST likely to violate RESPA Section 8?

Co-hosting an educational homebuyer seminar where costs are split proportionally based on each party's advertising space. The advisor paying for a box of donuts for the agent's office after a successful closing. The advisor paying the real estate agent a monthly fee to be featured as the 'exclusive preferred lender' on the agent's website. The advisor sponsoring a hole at a charity golf tournament hosted by the real estate brokerage.

Correct Answer:

The advisor paying the real estate agent a monthly fee to be featured as the 'exclusive preferred lender' on the agent's website.

Question 4

A loan application is denied by underwriting due to the applicant's high debt-to-income ratio. When communicating this to the applicant, what is the most appropriate and ethical action for the Certified Mortgage Advisor to take?

Avoid providing a specific reason to prevent a potential argument or confrontation. Inform the applicant that the lender's decision is final and cannot be appealed. Suggest the applicant immediately apply with a different lender who might have more lenient guidelines. Clearly explain the reason for the denial and inform them they will receive a formal Adverse Action Notice with specific details and their rights.

Correct Answer:

Clearly explain the reason for the denial and inform them they will receive a formal Adverse Action Notice with specific details and their rights.

Question 5

A Certified Mortgage Advisor creates a social media post that prominently features the phrase "30-year fixed rates as low as 5.25%!" To comply with the Truth in Lending Act (TILA), what other information must the advertisement also clearly and conspicuously state?

The advisor's NMLS license number. The Annual Percentage Rate (APR) and other triggered loan terms. A disclaimer that rates are subject to change. The name and address of the primary lender funding the loan.

Correct Answer:

The Annual Percentage Rate (APR) and other triggered loan terms.

Question 1

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About this Exam

Prepare with the Certified Mortgage Advisor (CMA) practice quiz. This question bank includes 30 questions covering mortgage, loan, advisor, client, and rates. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Certified Mortgage Advisor (CMA)

This practice set contains 30 questions from the matching question bank and focuses on mortgage, loan, advisor, client, and rates. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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Certified Mortgage Advisor (CMA)

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