Question 1
An investor purchases mortgage loans from lenders so lenders can continue originating loans. Which market is described?
Show answer & explanation
Correct answer: C - Secondary mortgage market
10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The CRMS exam has 155 questions and runs 3 hours.
These 10 free CRMS questions are organized by exam domain, so you can see how each part of the Certified Residential Mortgage Specialist blueprint is tested. Reveal the answer and explanation under each question.
An investor purchases mortgage loans from lenders so lenders can continue originating loans. Which market is described?
Correct answer: C - Secondary mortgage market
An appraiser determines value primarily by comparing recent sales of similar properties. Which approach is used?
Correct answer: C - Market approach
A broker has a financial interest in a company receiving settlement-related business. Which ethical requirement is most relevant?
Correct answer: A - Disclosure of financial interests
A lender obtains property insurance because the borrower failed to maintain required coverage. What type of coverage is this?
Correct answer: C - Force-placed insurance
A borrower receives a Loan Estimate instead of a Good Faith Estimate for a covered mortgage transaction. Which framework explains this change?
Correct answer: A - TRID requirements under TILA-RESPA rules
A mortgage professional discovers altered income documents during application review. What is the appropriate response?
Correct answer: C - Address and report suspected fraud according to procedures
A borrower has strong credit and assets but cannot document stable income sufficient for the proposed payment. Which transaction-analysis factor is the primary concern?
Correct answer: B - Capacity
In an adjustable-rate mortgage, what is the fixed percentage added to the index called?
Correct answer: A - Margin
Which system evaluates mortgage applications using established underwriting rules?
Correct answer: B - Automated underwriting system
Which statement best distinguishes prequalification from preapproval?
Correct answer: A - Prequalification uses preliminary information while preapproval generally involves more review
The full bank has 1,020 more CRMS questions with explanations.
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