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100+ Free MBA CRU Practice Questions

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For a borrower with W-2 income, the underwriter generally requires:

A
B
C
D
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Key Facts: MBA CRU Exam

3 Levels

Progressive Curriculum

MBA CRU

10 hrs

Level II Seat Time

MBA

45%

Fannie Standard DTI Cap

Fannie B3

50%

Fannie Max DTI (DU)

With Comp Factors

4 years

Ch 7 BK Seasoning

Fannie B3-5.3-07

580

FHA 3.5% Down FICO

HB 4000.1

MBA's Certified Residential Underwriter (CRU) designation is the industry standard for residential mortgage underwriters, progressing through three levels: Level I (Foundations, 1-year experience recommended), Level II (Intermediate, ~10 hours seat time), and Level III (Advanced). The body of knowledge covers credit analysis, income calculation (W-2, Schedule C, K-1, rental), DTI ratios, asset documentation, AUS (DU/LPA), Fannie/Freddie Selling Guides, FHA HB 4000.1, VA M26-7, USDA HB-1-3555, and appraisal review. Our 100 free practice questions cover all three levels and key calculation skills.

Sample MBA CRU Practice Questions

Try these sample questions to test your MBA CRU exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1For a salaried W-2 borrower whose YTD pay stub shows $52,000 over 26 weeks with no overtime, the qualifying monthly income is:
A.$8,667
B.$4,333
C.$2,000
D.$1,000
Explanation: Annualize first: $52,000 / 26 weeks × 52 weeks = $104,000 annual. Monthly qualifying income = $104,000 / 12 = $8,666.67, rounded to $8,667. Per Fannie B3-3.1-01, salaried income is averaged when consistent.
2A borrower has gross monthly income of $7,500. Total monthly debts (including the proposed PITI of $1,800) are $2,250. The total DTI is:
A.24%
B.30%
C.32%
D.36%
Explanation: DTI = ($2,250 / $7,500) × 100 = 30%. This is well within Fannie's DU and Freddie's LPA standard ceiling of 45% (50% with compensating factors). Front-end housing ratio = $1,800 / $7,500 = 24%.
3For a self-employed borrower with Schedule C net profit of $84,000 in 2024 and $96,000 in 2023, the qualifying monthly income (assuming both years acceptable) is approximately:
A.$7,500
B.$8,000
C.$7,000
D.$10,000
Explanation: Average two years of Schedule C net profit: ($84,000 + $96,000) / 2 = $90,000 annual. Monthly = $90,000 / 12 = $7,500. Add back depreciation if available. Per Fannie B3-3.2.
4Under Fannie Mae's Selling Guide, when documenting rental income on a Schedule E investment property, the underwriter:
A.Adds back depreciation, mortgage interest, taxes, insurance, HOA and uses 75% if calculating with leases
B.Uses gross rent only
C.Uses gross rent minus expenses
D.Ignores Schedule E entirely
Explanation: Per Fannie B3-3.1-08, Schedule E rental income = net income + depreciation + non-recurring items + HOA + insurance + mortgage interest + taxes (added back), divided by 12 months operated. If using lease (not Sch E history), use 75% to account for vacancy/expense.
5A borrower presents a credit report with a 30-day late payment on a credit card 6 months ago and no other derogatories. The underwriter generally considers:
A.Whether the late was an isolated incident with explanation, and overall credit pattern
B.Automatic denial
C.Ignore the late
D.Always require 12 months perfect
Explanation: Underwriters analyze the credit pattern: number, recency, severity, and reason for derogatories. A single 30-day late with explanation and otherwise strong credit history is typically acceptable on most products. AUS handles within risk model.
6For a conventional Fannie Mae loan, what is the minimum FICO score generally required for an AUS approval at 95% LTV?
A.620
B.640
C.660
D.680
Explanation: Fannie Mae's minimum FICO for DU approval is generally 620 for conventional loans at most LTVs including 95%. Score is one factor; DTI, reserves, and LTV combine in the DU risk model. Below 620, manual UW path is rare.
7Under Fannie Mae guidelines, when is a borrower's credit history considered seasoned enough after a Chapter 7 bankruptcy discharge?
A.4 years from discharge
B.2 years
C.7 years
D.No waiting period
Explanation: Fannie B3-5.3-07: 4 years from Chapter 7 bankruptcy discharge or dismissal date. Extenuating circumstances can reduce to 2 years with documentation. Chapter 13: 2 years from discharge or 4 years from dismissal.
8For a borrower with a foreclosure on record, Fannie Mae's standard waiting period before becoming eligible for a new conventional loan is:
A.7 years from completion
B.4 years
C.2 years
D.No waiting period
Explanation: Fannie B3-5.3-07: 7 years from foreclosure completion (with re-established credit). Extenuating circumstances can reduce to 3 years. Deed-in-lieu/preforeclosure sale: 4 years standard, 2 years with extenuating circumstances.
9In income calculation for a salaried borrower receiving a non-fluctuating $5,000 annual bonus consistently for 2 years, how is the bonus typically qualified?
A.Use the 2-year average ($5,000 / 12 = $417/month)
B.Use only most recent year
C.Add 50%
D.Cannot use bonus
Explanation: Per Fannie B3-3.1-03, bonus income (variable) requires 2-year average and likelihood of continuance. $5,000 / 12 months = $417/month qualifying income. If declining year-over-year, lender uses the lower amount.
10For an FHA loan under HUD Handbook 4000.1, the minimum FICO score for the 3.5% down payment minimum is:
A.580
B.620
C.640
D.500
Explanation: FHA Handbook 4000.1: FICO 580+ qualifies for 3.5% minimum down payment. Below 580 (down to 500), borrowers must put 10% down. Many lenders overlay to 620-640 but the FHA floor is 580 with 3.5% down.

About the MBA CRU Exam

The MBA Certified Residential Underwriter (CRU) is a three-level progressive designation for residential mortgage underwriters. Candidates progress through Level I (Foundations), Level II (Intermediate), and Level III (Advanced), each with course exams. The body of knowledge covers credit analysis, income calculation (W-2, self-employed, rental, K-1), DTI, asset documentation, AUS (DU and LPA), Fannie Mae Selling Guide, Freddie Mac Seller-Servicer Guide, FHA Handbook 4000.1, VA Lenders Handbook M26-7, USDA HB-1-3555, appraisal review, condo/PUD project review, and ATR/QM compliance. Our 100 free practice questions support all three levels.

Assessment

Three progressive levels (I, II, III) each with self-paced courses and course exams

Time Limit

Self-paced; Level II ~10 hours of seat time

Passing Score

Per individual course exam thresholds

Exam Fee

Varies by Level I/II/III enrollment through MBA (Mortgage Bankers Association)

MBA CRU Exam Content Outline

25%

Income Calculation

W-2, self-employed Schedule C, K-1, rental Schedule E, variable income

20%

Credit Analysis

FICO, tradelines, derogatories, bankruptcy, foreclosure seasoning

15%

DTI & Liabilities

DTI ratios, student loans, HELOC qualifying, child support

15%

AUS (DU/LPA)

Desktop Underwriter findings, Loan Product Advisor recommendations, Day 1 Certainty

10%

Fannie/Freddie Selling Guides

Eligibility, LTV/CLTV, reserves, condo/PUD review

10%

FHA/VA/USDA Underwriting

HB 4000.1, M26-7 Lenders Handbook, HB-1-3555

5%

Property & Appraisal Review

URAR, condo/PUD, manufactured housing, flood zones

How to Pass the MBA CRU Exam

What You Need to Know

  • Passing score: Per individual course exam thresholds
  • Assessment: Three progressive levels (I, II, III) each with self-paced courses and course exams
  • Time limit: Self-paced; Level II ~10 hours of seat time
  • Exam fee: Varies by Level I/II/III enrollment through MBA

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

MBA CRU Study Tips from Top Performers

1Master the income-calculation formulas: salaried = annualize YTD; self-employed = 2-year average Schedule C net + depreciation add-back; bonus/commission = 2-year average with continuance
2Memorize asset reserve percentages: checking 100%, vested stocks 70%, retirement 60% (Fannie B3-4.3) — these come up on every level exam
3Build a personal DTI calculator using sample loan files; practice running scenarios with student loan IDR plans, HELOCs, and revolving balances
4Understand AUS terminology: DU returns Approve/Eligible vs Approve/Ineligible vs Refer; LPA returns Accept vs Caution — these decisions drive the entire UW workflow
5Know seasoning rules cold: BK Ch 7 = 4 years (2 with extenuating); foreclosure = 7 years (3 with extenuating); DIL/short sale = 4 years (2 with extenuating)

Frequently Asked Questions

What is the MBA CRU designation?

The Certified Residential Underwriter (CRU) is the Mortgage Bankers Association's progressive three-level designation for residential mortgage underwriters. Candidates earn the CRU by completing Level I (Foundations), Level II (Intermediate), and Level III (Advanced), each with course exams covering credit, income, AUS, and agency underwriting rules.

What are the experience requirements for CRU?

Level I: 1 year of industry experience recommended but not required. Level II: 1-2 years recommended plus Level I completion. Level III: 2+ years recommended plus Level II completion. The progressive structure builds skills systematically.

How long does each CRU level take?

Level II courses are approximately 10 hours of seat time. Total CRU completion typically takes 6-18 months depending on study pace and prior experience. Self-paced format allows underwriters to balance work and study.

What topics does the CRU exam cover?

The body of knowledge covers credit analysis (FICO, tradeline, derogatories, BK), income calculation (W-2, self-employed, Schedule C/E/K-1, rental), DTI calculation, asset documentation, AUS interpretation (DU and LPA), Fannie/Freddie Selling Guides, FHA HB 4000.1, VA M26-7, USDA HB-1-3555, appraisal review (URAR, 1073, 1004C), and ATR/QM compliance.

How is the CRU different from FNMA's DU certification?

The CRU is a credential earned by the underwriter (individual designation), demonstrating broad underwriting skill across conventional, FHA, VA, and USDA. DU is Fannie's automated underwriting system. Underwriters use DU as a tool; the CRU certifies underwriter expertise.

Do I need 2 years self-employment for conventional loans?

Per Fannie Mae's Selling Guide (B3-3.2), 2 years of self-employment is the standard documentation requirement. Exceptions exist: 1 year may be acceptable when borrower has 2+ years prior W-2 in the same line of work. Underwriters apply judgment within the rule.

What is the maximum DTI for Fannie Mae loans?

Fannie Mae's DU can approve DTI up to 50% with strong compensating factors (residual income, reserves, low LTV). Standard DU ceiling is 45%. The 2021 General QM Final Rule replaced the strict 43% DTI cap with a price-based test (APR-APOR spread).