Page | 1
CRU EXAM 3 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
Select all that apply. In conventional financing, a termite
inspection will NOT be required for a purchase or refinance
transaction unless the: - correct answer -1. Property is located in
a state where wood destroying insect inspections are mandatory
upon property transfer
2. Appraiser makes comments on potential pest infestation and
requires an inspection
3. Investor requires it
Typically, a lender should request _______ if there is a private
well used for water. - correct answer -
According to Freddie Mac, mortgage risk is evaluated by
reviewing all of the following loan parameters EXCEPT: - correct
answer -Tiered credit
For Fannie Mae's HomeReady program, borrowers ________
required to be a first -time buyer - correct answer -Are not
, Page | 2
Which appraisal report does Fannie Mae require for manufactured
homes? - correct answer -1004C
Select three. Lenders must evaluate the overall level of serious
delinquency risk that is present in each mortgage application by
taking into consideration: - correct answer -Not: The total amount
of debt risk
When the property is not submitted as a manufactured home
during the initial submission to Desktop Underwriter (DU), and the
database indicates that the property may be a manufactured
home, the lender should do all of the following EXCEPT which
one? - correct answer -Manually underwrite the loan if the
property is a manufactured home
When borrowers choose to refinance their mortgages over shorter
terms, the loans tend to perform ________ mortgages with longer
amortization periods. - correct answer -Better than
Select all that apply. Which of the following statements are true
about the National Flood Insurance Program?Select all that apply.
Which of the following statements are true about the National
, Page | 3
Flood Insurance Program? - correct answer -1. It protects
homeowners by allowing them to purchase flood insurance.
2. It encourages communities to adopt flood management
ordinances.
According to Freddie Mac guidelines for loans secured by
manufactured housing, if the borrower owns the land on which the
manufactured home is or will be permanently attached, the land
may be used as an equity contribution. - correct answer -True
Which of the following statements about excess land is true? -
correct answer -Excess land is needed to support the
improvements.
The USDA guarantees the lender up to ____ of the loan against
losses under the Guaranteed Single-Family Home Loan Program.
- correct answer -100%
Which of the following about manufactured housing is FALSE? -
correct answer -HUD restrictions mandate financing for
manufactured housing.
, Page | 4
Interest-only mortgages are considered high risk because: -
correct answer -Borrowers suffer from severe payment shock
when the interest only period expires.
Which of the following cannot be financed into the sales price of a
loan for manufactured housing? - correct answer -Mortgage
insurance
Loan amortization type, property type, and debt-to-income ratio
are all considered non-credit risk factors that should be evaluated
when analyzing the primary risk in a mortgage loan file. - correct
answer -True
An underwriter who receives a Desktop Underwriter (DU) risk
recommendation of Refer with Caution should: - correct answer -
Manually underwrite the loan file with caution
Which of the following is considered a secondary hurdle for
minorities and low- to moderate-income earners? - correct answer
-Down payment
CRU EXAM 3 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
Select all that apply. In conventional financing, a termite
inspection will NOT be required for a purchase or refinance
transaction unless the: - correct answer -1. Property is located in
a state where wood destroying insect inspections are mandatory
upon property transfer
2. Appraiser makes comments on potential pest infestation and
requires an inspection
3. Investor requires it
Typically, a lender should request _______ if there is a private
well used for water. - correct answer -
According to Freddie Mac, mortgage risk is evaluated by
reviewing all of the following loan parameters EXCEPT: - correct
answer -Tiered credit
For Fannie Mae's HomeReady program, borrowers ________
required to be a first -time buyer - correct answer -Are not
, Page | 2
Which appraisal report does Fannie Mae require for manufactured
homes? - correct answer -1004C
Select three. Lenders must evaluate the overall level of serious
delinquency risk that is present in each mortgage application by
taking into consideration: - correct answer -Not: The total amount
of debt risk
When the property is not submitted as a manufactured home
during the initial submission to Desktop Underwriter (DU), and the
database indicates that the property may be a manufactured
home, the lender should do all of the following EXCEPT which
one? - correct answer -Manually underwrite the loan if the
property is a manufactured home
When borrowers choose to refinance their mortgages over shorter
terms, the loans tend to perform ________ mortgages with longer
amortization periods. - correct answer -Better than
Select all that apply. Which of the following statements are true
about the National Flood Insurance Program?Select all that apply.
Which of the following statements are true about the National
, Page | 3
Flood Insurance Program? - correct answer -1. It protects
homeowners by allowing them to purchase flood insurance.
2. It encourages communities to adopt flood management
ordinances.
According to Freddie Mac guidelines for loans secured by
manufactured housing, if the borrower owns the land on which the
manufactured home is or will be permanently attached, the land
may be used as an equity contribution. - correct answer -True
Which of the following statements about excess land is true? -
correct answer -Excess land is needed to support the
improvements.
The USDA guarantees the lender up to ____ of the loan against
losses under the Guaranteed Single-Family Home Loan Program.
- correct answer -100%
Which of the following about manufactured housing is FALSE? -
correct answer -HUD restrictions mandate financing for
manufactured housing.
, Page | 4
Interest-only mortgages are considered high risk because: -
correct answer -Borrowers suffer from severe payment shock
when the interest only period expires.
Which of the following cannot be financed into the sales price of a
loan for manufactured housing? - correct answer -Mortgage
insurance
Loan amortization type, property type, and debt-to-income ratio
are all considered non-credit risk factors that should be evaluated
when analyzing the primary risk in a mortgage loan file. - correct
answer -True
An underwriter who receives a Desktop Underwriter (DU) risk
recommendation of Refer with Caution should: - correct answer -
Manually underwrite the loan file with caution
Which of the following is considered a secondary hurdle for
minorities and low- to moderate-income earners? - correct answer
-Down payment
