FREDDIE MAC - CREDIT SMART EXAM QUESTIONS AND
ANSWERS NEW AND UPDATED 2026 |WITH VERIFIED
QUESTIONS AND ANSWERS!!!
The mortgage loan process occurs in the following order:
Pre-qualification or pre-approval, loan application, loan processing, loan
underwriting, loan approval or denial.
Making pre-payments (also called principal-only payments) can help you pay off
your loan sooner and potentially save you thousands of dollars in interest
payments.
True
If a lender denies your loan, they're required by law to provide the applicant with
an explanation and share the credit score they used to make the lending decision.
True
Select all that apply. If you can't qualify for a loan on your own, you may have
other options, including:
--Finding a co-signer.
--Getting gift funds from a family member.
--Speaking with a HUD-certified housing counselor to create an action plan for
resolving key financial issues.
You should never sign a loan document that has blank lines.
, True
What is negative amortization (select all that apply):
--A predatory lending tactic that consumers should avoid.
--A payment schedule where your monthly payment doesn't cover the entire
interest due, resulting in the interest being added to your principal, which causes
your principal balance to increase instead of decrease.
A pre-payment penalty makes it costlier to pay off your loan early and thus should
be avoided.
True
The seven protected classes under the Fair Housing Law are race, color, national
origin, religion, sex, family status and disability.
True
It's easier not to have funds caught up in an escrow account.
False.
(You may be required to have an escrow account to pay for large homeownership
expenses, namely taxes and insurance. If you're not required to have one, it's still
a good idea to ask your lender to establish an escrow account because if you don't
pay your taxes or insurance, you could lose your home to foreclosure.)
Real estate agents must take a test to become licensed in their state.
True
Real estate agents can help with the following:
ANSWERS NEW AND UPDATED 2026 |WITH VERIFIED
QUESTIONS AND ANSWERS!!!
The mortgage loan process occurs in the following order:
Pre-qualification or pre-approval, loan application, loan processing, loan
underwriting, loan approval or denial.
Making pre-payments (also called principal-only payments) can help you pay off
your loan sooner and potentially save you thousands of dollars in interest
payments.
True
If a lender denies your loan, they're required by law to provide the applicant with
an explanation and share the credit score they used to make the lending decision.
True
Select all that apply. If you can't qualify for a loan on your own, you may have
other options, including:
--Finding a co-signer.
--Getting gift funds from a family member.
--Speaking with a HUD-certified housing counselor to create an action plan for
resolving key financial issues.
You should never sign a loan document that has blank lines.
, True
What is negative amortization (select all that apply):
--A predatory lending tactic that consumers should avoid.
--A payment schedule where your monthly payment doesn't cover the entire
interest due, resulting in the interest being added to your principal, which causes
your principal balance to increase instead of decrease.
A pre-payment penalty makes it costlier to pay off your loan early and thus should
be avoided.
True
The seven protected classes under the Fair Housing Law are race, color, national
origin, religion, sex, family status and disability.
True
It's easier not to have funds caught up in an escrow account.
False.
(You may be required to have an escrow account to pay for large homeownership
expenses, namely taxes and insurance. If you're not required to have one, it's still
a good idea to ask your lender to establish an escrow account because if you don't
pay your taxes or insurance, you could lose your home to foreclosure.)
Real estate agents must take a test to become licensed in their state.
True
Real estate agents can help with the following:
