CRU EXAM 1 CERTIFICATION PAPER 2026
FULL ANSWERS GRADED A+
⩥ The opportunity to utilize streamlined appraisal is lost if the lender
fails to submit an accurate address for the subject property to Desktop
Underwriter (DU). Answer: False*
⩥ What is the primary role of the GSEs, Fannie Mae and Freddie Mac?
Answer: Buy mortgages and create mortgage-backed securities
⩥ Cash proceeds from a cash out refinance transaction are an acceptable
source of liquid reserves. Answer: False
⩥ A borrower has a three-year history of overtime, verified by W-2s and
a VOE. The overtime income has risen slightly over the last three years.
The remainder of the file is strong, with a good credit score and all other
eligibility issues met. How would you calculate the overtime income,
unless otherwise stipulated by the AUS findings? Answer: Average the
last two years' overtime
⩥ A profit and loss statement does which of the following? Answer:
Provides a snapshot of the income and expenses of a business during a
calendar or fiscal year.
,⩥ Select two. Unless otherwise indicated by the automated underwriting
findings report, which of the following documents are used to verify
salaried income? Answer: A verification of employment (VOE)
W-2s covering the most recent 2-year period
⩥ Which team in a mortgage banking operation is primarily responsible
for insuring that the investor gets all the documentation necessary when
a loan is sold? Answer: Shipping
⩥ The document published by Fannie Mae that provides comprehensive
LTV, CLTV, and HCLTV ratio requirements for manually underwritten
loans is called the: Answer: Eligibility Matrix
⩥ Select all that apply. An Excessive Value with Valuation Risk message
from Desktop Underwriter (DU) alerts the lender that there is a risk of:
Answer: -Inflated value
-Unsuitable comparables used
-The appraiser not being qualified to project appraisal values accurately
-Excessive value for the local market
1,4*
⩥ Select three. Schedule E includes income from: Answer: Partnerships
Rental properties
, Trusts
⩥ If a borrower's payment matches the coupon amount the payment is
applied to: Answer:
⩥ Choose the best possible answer. When reviewing a borrower's credit
report, the underwriter notices that all accounts have been paid in full
recently. The underwriter recognizes this as a red flag that could indicate
a concern that the borrower has recently: Answer: Opened a new,
undisclosed consolidation loan
⩥ What are loans that are eligible for sale to the GSEs (Fannie Mae and
Freddie Mac) called? Answer: Agency eligible
⩥ The appraiser may provide the final appraised value on the URAR,
noting that the value is subject to repairs or alterations. Answer: True
⩥ A corporation's income is taxed: Answer: On both personal and
corporate rates
⩥ If an appraisal is over 4 months old, what needs to be done? Answer:
Re-inspection of the interior and exterior of the home (1040D)
FULL ANSWERS GRADED A+
⩥ The opportunity to utilize streamlined appraisal is lost if the lender
fails to submit an accurate address for the subject property to Desktop
Underwriter (DU). Answer: False*
⩥ What is the primary role of the GSEs, Fannie Mae and Freddie Mac?
Answer: Buy mortgages and create mortgage-backed securities
⩥ Cash proceeds from a cash out refinance transaction are an acceptable
source of liquid reserves. Answer: False
⩥ A borrower has a three-year history of overtime, verified by W-2s and
a VOE. The overtime income has risen slightly over the last three years.
The remainder of the file is strong, with a good credit score and all other
eligibility issues met. How would you calculate the overtime income,
unless otherwise stipulated by the AUS findings? Answer: Average the
last two years' overtime
⩥ A profit and loss statement does which of the following? Answer:
Provides a snapshot of the income and expenses of a business during a
calendar or fiscal year.
,⩥ Select two. Unless otherwise indicated by the automated underwriting
findings report, which of the following documents are used to verify
salaried income? Answer: A verification of employment (VOE)
W-2s covering the most recent 2-year period
⩥ Which team in a mortgage banking operation is primarily responsible
for insuring that the investor gets all the documentation necessary when
a loan is sold? Answer: Shipping
⩥ The document published by Fannie Mae that provides comprehensive
LTV, CLTV, and HCLTV ratio requirements for manually underwritten
loans is called the: Answer: Eligibility Matrix
⩥ Select all that apply. An Excessive Value with Valuation Risk message
from Desktop Underwriter (DU) alerts the lender that there is a risk of:
Answer: -Inflated value
-Unsuitable comparables used
-The appraiser not being qualified to project appraisal values accurately
-Excessive value for the local market
1,4*
⩥ Select three. Schedule E includes income from: Answer: Partnerships
Rental properties
, Trusts
⩥ If a borrower's payment matches the coupon amount the payment is
applied to: Answer:
⩥ Choose the best possible answer. When reviewing a borrower's credit
report, the underwriter notices that all accounts have been paid in full
recently. The underwriter recognizes this as a red flag that could indicate
a concern that the borrower has recently: Answer: Opened a new,
undisclosed consolidation loan
⩥ What are loans that are eligible for sale to the GSEs (Fannie Mae and
Freddie Mac) called? Answer: Agency eligible
⩥ The appraiser may provide the final appraised value on the URAR,
noting that the value is subject to repairs or alterations. Answer: True
⩥ A corporation's income is taxed: Answer: On both personal and
corporate rates
⩥ If an appraisal is over 4 months old, what needs to be done? Answer:
Re-inspection of the interior and exterior of the home (1040D)
