Certified Mortgage Consultant (CMC®)

Question 1

A retired couple, both age 69, own their home valued at $600,000 outright. They are seeking a way to access their home equity to supplement their fixed income without incurring a mandatory monthly mortgage payment. Which mortgage product is specifically designed for this situation?

Shared Appreciation Mortgage Graduated Payment Mortgage Home Equity Conversion Mortgage (HECM) Bridge Loan

Correct Answer:

Home Equity Conversion Mortgage (HECM)

Question 2

When underwriting a Debt Service Coverage Ratio (DSCR) loan for an investment property, what is the primary factor used for qualification?

The property's projected rental income compared to its debt obligations (PITI). The borrower's personal debt-to-income ratio. The borrower's verified liquid assets and net worth. The credit score of the primary borrower.

Correct Answer:

The property's projected rental income compared to its debt obligations (PITI).

Question 3

Which of the following is a common characteristic of a Non-Qualified Mortgage (Non-QM)?

It is guaranteed or insured by a federal government agency like FHA or VA. It strictly adheres to the CFPB's 43% debt-to-income (DTI) cap. It must avoid features like interest-only payments or balloon payments. It may use alternative documentation, such as 12 or 24 months of bank statements, to verify income.

Correct Answer:

It may use alternative documentation, such as 12 or 24 months of bank statements, to verify income.

Question 4

A client is planning to build a new primary residence and wants to finance both the construction phase and the subsequent permanent mortgage with a single application and closing process. What type of financing would best achieve this goal?

A second mortgage combined with a construction line of credit. A single-close construction-to-permanent loan. A hard money loan for construction followed by a separate refinance. A blanket mortgage covering the lot and future construction.

Correct Answer:

A single-close construction-to-permanent loan.

Question 5

A mortgage underwriter is using an asset depletion method to qualify a borrower who has significant liquid assets but limited traditional income. How is the qualifying income typically calculated using this method?

By requiring the borrower to purchase an annuity with the assets before closing. By calculating the average monthly capital gains from the asset portfolio. By dividing the total eligible assets by a specified number of months (e.g., 240 or 360) to create a monthly income stream. By multiplying the total asset value by the current 10-year Treasury yield.

Correct Answer:

By dividing the total eligible assets by a specified number of months (e.g., 240 or 360) to create a monthly income stream.

Question 1

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About this Exam

Prepare with the Certified Mortgage Consultant (CMC®) practice quiz. This question bank includes 30 questions covering mortgage, client, financial, income, and home. 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 Consultant (CMC®)

This practice set contains 30 questions from the matching question bank and focuses on mortgage, client, financial, income, and home. 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 Consultant (CMC®)

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