CRU EXAM 1 ACTUAL TEST PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
⩥ Select three. Which of the following GSEs, federal agencies, and
private companies provide various tools and information to help
mortgage lenders detect, track, and prevent fraud? Answer: FBI
Fannie Mae
Lexus Nexus
⩥ Collusion Answer: "A secret agreement or cooperation especially for
an illegal or deceitful purpose."
⩥ Non-arm's length transactions Answer: purchase transactions in which
there is a relationship or business affiliation between the seller and the
buyer of the property
⩥ Straw buyers Answer: loan applicants that are paid by the fraud
"ringleader" to obtain mortgages, thereby disguising the real identity of
the perpetrator.
⩥ Select three. How are legitimate flip sales different from fraudulent
flip sales? Answer: In fraudulent flip transactions, the perpetrator has no
intention of paying back the loan.
,Fraudulent flips involve the transfer of the property in order to increase
loan proceeds.
Loan files from legitimate flippers generally contain true financial
information.
⩥ Select two. Which of the following are red flags for builder bailouts?
Answer: Source of funds in the loan file is questionable
Marketing materials advertise "no money down"
⩥ A "buy and bail" fraud can occur when a borrower: Answer: Decides
to default on payments because of the value of the home
⩥ In most cases, how do foreclosure specialists track down their
"targets"? Answer: By reading the "Notice of Defaults" listed in the
public records
⩥ If a file contains inconsistencies such as a mismatch between the
buyer's age and professional level, an unrealistic commuting distance, or
contradictory income/asset information, it may indicate that: Answer:
There is a straw buyer applying for the loan
⩥ The sales contract should always be compared to the: Answer:
Appraisal
,⩥ What would an illegal credit cleaning company suggest that a
consumer do to improve his or her credit? Answer: Rent a seasoned
"trade line" with a strong history to make the report look better
⩥ Select two. You have a verification of employment form with an
illegible signature and no listed title for the person who signed it.
Additionally the address for the employer is a P.O. box. What are some
things you can do to further verify employment? Answer: Check the
phone directory for a physical address of the employer
Perform a verbal verification of employment by using the phone number
listed in the phone book and asking for the Human Resources
department
⩥ What is one red flag on asset documentation that might indicate the
borrower is a straw buyer? Answer: Bank statements reflect automatic
payroll deposits that are not consistent with employment listed on the
loan application
⩥ Why is careful review of the appraisal imperative to fraud deterrence?
Answer: Because most fraud for profit schemes rely on fraudulent
appraisals
⩥ Select two. Lenders should perform background checks on which of
the following? Answer: Branch managers
Loan officers
, ⩥ Select two. When a borrower provides information to a loan
originator, the loan originator should: Answer: Not accept
documentation that cannot be verified as coming directly from the
borrower.
Share all information with your processing and underwriting team,
especially if there are concerns about the file.
⩥ Select three. Fannie Mae recommends that lenders focus quality
control checks on the following common areas of loan defects: Answer:
Appraisal/value
Occupancy status
Income verification
⩥ Select two. Which of the following websites can help you review a
property description? Answer: Zillow
Realtor.com
⩥ One way to identify transactions that involve straw buyers is to:
Answer:
⩥ When reviewing a borrower's assets, which of the following would be
considered a red flag? Answer: Large deposits inconsistent with earnings
⩥ Which of the below best describes a forensic loan audit with regard to
foreclosure rescue schemes? Answer: A company offers a borrower help
QUESTIONS WITH ANSWERS GRADED A+
⩥ Select three. Which of the following GSEs, federal agencies, and
private companies provide various tools and information to help
mortgage lenders detect, track, and prevent fraud? Answer: FBI
Fannie Mae
Lexus Nexus
⩥ Collusion Answer: "A secret agreement or cooperation especially for
an illegal or deceitful purpose."
⩥ Non-arm's length transactions Answer: purchase transactions in which
there is a relationship or business affiliation between the seller and the
buyer of the property
⩥ Straw buyers Answer: loan applicants that are paid by the fraud
"ringleader" to obtain mortgages, thereby disguising the real identity of
the perpetrator.
⩥ Select three. How are legitimate flip sales different from fraudulent
flip sales? Answer: In fraudulent flip transactions, the perpetrator has no
intention of paying back the loan.
,Fraudulent flips involve the transfer of the property in order to increase
loan proceeds.
Loan files from legitimate flippers generally contain true financial
information.
⩥ Select two. Which of the following are red flags for builder bailouts?
Answer: Source of funds in the loan file is questionable
Marketing materials advertise "no money down"
⩥ A "buy and bail" fraud can occur when a borrower: Answer: Decides
to default on payments because of the value of the home
⩥ In most cases, how do foreclosure specialists track down their
"targets"? Answer: By reading the "Notice of Defaults" listed in the
public records
⩥ If a file contains inconsistencies such as a mismatch between the
buyer's age and professional level, an unrealistic commuting distance, or
contradictory income/asset information, it may indicate that: Answer:
There is a straw buyer applying for the loan
⩥ The sales contract should always be compared to the: Answer:
Appraisal
,⩥ What would an illegal credit cleaning company suggest that a
consumer do to improve his or her credit? Answer: Rent a seasoned
"trade line" with a strong history to make the report look better
⩥ Select two. You have a verification of employment form with an
illegible signature and no listed title for the person who signed it.
Additionally the address for the employer is a P.O. box. What are some
things you can do to further verify employment? Answer: Check the
phone directory for a physical address of the employer
Perform a verbal verification of employment by using the phone number
listed in the phone book and asking for the Human Resources
department
⩥ What is one red flag on asset documentation that might indicate the
borrower is a straw buyer? Answer: Bank statements reflect automatic
payroll deposits that are not consistent with employment listed on the
loan application
⩥ Why is careful review of the appraisal imperative to fraud deterrence?
Answer: Because most fraud for profit schemes rely on fraudulent
appraisals
⩥ Select two. Lenders should perform background checks on which of
the following? Answer: Branch managers
Loan officers
, ⩥ Select two. When a borrower provides information to a loan
originator, the loan originator should: Answer: Not accept
documentation that cannot be verified as coming directly from the
borrower.
Share all information with your processing and underwriting team,
especially if there are concerns about the file.
⩥ Select three. Fannie Mae recommends that lenders focus quality
control checks on the following common areas of loan defects: Answer:
Appraisal/value
Occupancy status
Income verification
⩥ Select two. Which of the following websites can help you review a
property description? Answer: Zillow
Realtor.com
⩥ One way to identify transactions that involve straw buyers is to:
Answer:
⩥ When reviewing a borrower's assets, which of the following would be
considered a red flag? Answer: Large deposits inconsistent with earnings
⩥ Which of the below best describes a forensic loan audit with regard to
foreclosure rescue schemes? Answer: A company offers a borrower help
