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100+ Free NAMU CMMU Practice Questions

Pass your NAMU Certified Master Mortgage Underwriter (NAMU-CMMU) exam on the first try — instant access, no signup required.

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What is the typical maximum LTV for a non-warrantable condo on a non-QM jumbo loan?

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Key Facts: NAMU CMMU Exam

30

Exam Questions

NAMU

60 min

Time Limit

NAMU

75%

Passing Score

NAMU

$995

Program Fee

NAMU 2026

7

Training Classes

NAMU CMMU curriculum

100

Practice Questions

Free on OpenExamPrep

NAMU-CMMU is a 30-question, 60-minute open-book proctored exam requiring 75% to pass. The $995 program bundles 7 training classes plus the exam. Up to 3 retake attempts with a 2-week cooling-off period. Targets senior underwriters handling complex self-employed income, non-QM/jumbo, multi-unit/investment, and post-closing QC. Prior CMU or equivalent experience strongly recommended.

Sample NAMU CMMU Practice Questions

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

1For a borrower with 25% K-1 distributive share from an S-corporation, what documents does FNMA require for income analysis?
A.W-2 only
B.Personal returns (2 years), business returns (2 years including K-1, Form 1120-S, Schedule K-1), YTD P&L, and analysis
C.Just K-1
D.Verbal statement
Explanation: For 25%+ ownership of an S-corp (or 25%+ of any pass-through), FNMA Selling Guide B3-3.4 requires 2 years personal tax returns, 2 years business returns (Form 1120-S), K-1s, YTD profit & loss and balance sheet, and cash-flow analysis using Form 1084.
2When analyzing a partnership K-1, what line item must be evaluated for likely continuance?
A.Guaranteed payments only
B.Ordinary business income, guaranteed payments, plus liquidity of the partnership (sufficient capital and distributions)
C.Capital account only
D.Total partnership debt
Explanation: K-1 (Form 1065) analysis includes ordinary business income (Box 1), guaranteed payments (Box 4), and net rental real estate income. Underwriter also reviews partnership returns (Form 1065 Schedule L) for sufficient liquidity to support continued distributions.
3On a 12-month personal bank statement loan (non-QM), how is qualifying income typically calculated?
A.Total deposits / 12
B.Eligible deposits (after exclusions for transfers, refunds, loans) / 12, often with an expense factor applied
C.Tax return income
D.Borrower-stated income
Explanation: Bank statement loan income = (eligible deposits over period) ÷ months × expense factor (often 50-90% for self-employed). Excludes intra-account transfers, refunds, large one-time items, and non-business deposits. Lender-specific methodology.
4A 'DSCR loan' for an investment property qualifies based on:
A.Borrower's W-2 income
B.Property's rental income vs the PITIA (Debt Service Coverage Ratio); typically requires 1.0x-1.25x or higher
C.Borrower's credit only
D.Property appraisal alone
Explanation: DSCR (Debt Service Coverage Ratio) loans qualify based on property cash flow: DSCR = monthly rent ÷ PITIA. Most lenders require DSCR ≥ 1.0x (break-even) or 1.25x. No personal income verification — appeals to real estate investors.
5A jumbo loan portfolio guideline typically requires reserves of:
A.1 month PITIA
B.6-24 months PITIA, often higher for larger loan amounts and lower credit/LTV
C.No reserves
D.12 months only for first-time buyers
Explanation: Jumbo portfolio guidelines require significant reserves: typically 6 months PITIA minimum, scaling to 12-24+ months for loans >$1.5M, lower credit scores, or higher LTV. Some non-warrantable condo jumbos require 24+ months reserves.
6A 2-4 unit owner-occupied investment property under FNMA limits LTV at:
A.95%
B.85% for 2-unit primary purchase / 75% for 3-4 unit primary purchase
C.65%
D.100%
Explanation: FNMA primary residence: 2-unit purchase up to 85% LTV; 3-4 unit purchase up to 75% LTV (effective 2023+, lower for cash-out). Owner-occupied multi-units allow rental income from non-occupied units (75% gross rent) for qualifying.
7For Fannie Mae rental income analysis, what percentage of gross rent is typically used in qualifying?
A.100%
B.75% (after operating expenses/vacancy)
C.50%
D.25%
Explanation: FNMA Selling Guide B3-3.1-08 applies a 25% vacancy/expense factor, using 75% of gross rent for qualifying. Alternative: full Schedule E analysis with actual expenses. Multi-unit owner-occupied uses non-owner unit rents.
8What is 'Cash Window' delivery to Fannie Mae?
A.Selling individual loans for cash settlement (whole loan sale)
B.Securitizing into Fannie Mae MBS for guarantee fee
C.Servicing only
D.No-fee transaction
Explanation: FNMA Cash Window allows lenders to sell whole loans (commitments) to FNMA for cash. Compare to MBS execution, where lenders deliver loans into a FNMA security in exchange for the security plus servicing-released or retained. Pricing differs.
9Post-closing Quality Control (QC) sample size under FNMA is typically:
A.1% of closings
B.10% random sample plus 'discretionary' targeted samples
C.100% of files
D.No QC required
Explanation: FNMA QC standards (Selling Guide D1) require lenders to review at least 10% of closed loans monthly, plus targeted/discretionary samples based on risk indicators (Early Payment Default, high-risk profiles, etc.).
10An 'Early Payment Default' (EPD) is defined by FNMA as:
A.Late payment within first 12 months
B.Default (typically 60+ days past due) within first 6 months of the loan
C.Late payment after 5 years
D.Any missed payment
Explanation: EPD typically means a loan goes 60+ days past due within 6 months of the first payment (some define as 90+ days within 12 months). EPDs trigger lender repurchase obligations under reps and warrants and intensified QC scrutiny.

About the NAMU CMMU Exam

The NAMU Certified Master Mortgage Underwriter (NAMU-CMMU) is the senior-level credential for experienced residential mortgage underwriters. After completing 7 training classes (Underwriting 101, Advanced Underwriting, FHA/VA Underwriting, Due Diligence/Manual UW, plus advanced topics), candidates sit for a 30-question, 60-minute open-book online proctored exam with a 75% pass threshold. Topics span complex self-employed (K-1, S-corp, partnership), non-QM products (bank statement, DSCR, asset depletion), jumbo, multi-unit, secondary market/QC (FNMA Cash Window vs MBS, repurchase, EPD), MI cancellation, servicing, and advanced fraud detection.

Questions

30 scored questions

Time Limit

60 minutes

Passing Score

75%

Exam Fee

$995 (training + exam bundle) (National Association of Mortgage Underwriters (NAMU))

NAMU CMMU Exam Content Outline

20%

Complex Self-Employed Income

S-corp K-1 (1120-S) analysis with W-2 + distributions, partnership K-1 (1065) with guaranteed payments + ordinary income + capital returns, C-corp 1120 (W-2 + 1099-DIV dividends), Form 1084 advanced add-backs, declining income trend rules, late-filer returns

20%

Non-QM & Alt-Doc

Personal bank statement loans (12-mo deposits with expense factor), business bank statement loans (industry-specific factor), DSCR loans (1.0x-1.25x for investment property), asset depletion (240/360 month amortization), interest-only ARMs, ATR 8 factors for non-QM

15%

Jumbo & High-Net-Worth

Jumbo portfolio reserves (6-24+ months), HighBalance conforming above $832,750 baseline to ~$1.2M, non-warrantable condo jumbo (75-80% LTV), high-net-worth asset utilization, publicly traded securities at 70-100%, complex jumbo gift documentation

10%

Multi-Unit & Investment

2-4 unit primary purchase (85% 2-unit / 75% 3-4 unit LTV), departing residence rental income (75% of lease with 30% equity), 10 financed properties cap, 6 months PITIA per additional financed property, multi-unit cash-out 70-75% LTV

15%

Secondary Market & QC

FNMA Cash Window (whole loan) vs MBS execution, post-closing QC 10% sample + discretionary, EPD (60+ DPD within 6 months), repurchase demand, reps & warrants breach, indemnification, FNMA UCDP/EAD appraisal delivery

10%

Servicing & MI

MSR economics (15-37 bps servicing fee, float income), HPA MI cancellation (78% auto / 80% borrower request with good standing), mark-to-market LTV cancellation, escrow analysis (RESPA annual), FNMA Flex Modification (480-month term, capitalize delinquencies)

10%

Fraud & Advanced Compliance

Fraud-for-profit (industry insiders: straw buyers, inflated appraisals) vs fraud-for-property (borrower-driven), illegal flipping red flags, occupancy fraud, Reg Z §1026.36 LO comp rule (no comp on rate/terms), FCRA §114 Red Flags Rule, GLBA privacy, redlining

How to Pass the NAMU CMMU Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 30 questions
  • Time limit: 60 minutes
  • Exam fee: $995 (training + exam bundle)

Keys to Passing

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

NAMU CMMU Study Tips from Top Performers

1Master K-1 analysis: distinguish ordinary income (Box 1 of 1065 / 1120-S K-1) from guaranteed payments (Box 4) and capital distributions; review the underlying 1065 / 1120-S for liquidity.
2Drill bank statement and DSCR loan qualifying math — these are unique non-QM products with specific expense factors (50-90%) and break-even (1.0x DSCR) calculations.
3Memorize FNMA reserves rules: 6 months PITIA per additional financed property up to the 10-property cap; jumbo portfolio often requires 12-24 months.
4Know post-closing QC: 10% sample + discretionary; EPD = 60+ DPD within first 6 months; repurchase demand consequences (indemnification, reps & warrants breach).
5Practice complex compliance: ATR safe harbor vs rebuttable presumption (HPQM threshold = APOR + 1.5% conforming first lien), Reg Z §1026.36 LO comp rule (no comp on loan terms).

Frequently Asked Questions

How does NAMU CMMU differ from NAMU CMU?

NAMU CMU (Certified Mortgage Underwriter) is entry-level with 4 training classes covering basic residential UW. NAMU CMMU (Master) is senior-level with 7 training classes covering advanced topics: complex self-employed (K-1, S-corp), non-QM (bank statement, DSCR), jumbo, multi-unit, post-closing QC, repurchase, EPD, and fraud schemes. Same exam format (30 questions, 60 minutes, 75% pass) but harder content.

Do I need NAMU CMU before NAMU CMMU?

Not formally required, but NAMU strongly recommends prior NAMU CMU or equivalent residential underwriting experience. The CMMU assumes mastery of basic underwriting (FNMA selling guide, FHA 4000.1, VA Lenders Handbook, ATR/QM, TRID) and builds on it with advanced products and quality control.

What is the hardest section of the NAMU CMMU exam?

Most candidates find the Complex Self-Employed Income section (20% weight) the most challenging. It requires reading K-1s (1065 partnerships, 1120-S S-corps), distinguishing ordinary income from capital distributions, working through Form 1084 add-backs, and recognizing declining income trends. Practice extensive tax-return analysis questions.

How much does the NAMU CMMU cost?

The NAMU CMMU program is approximately $995, bundling the 7 required training classes plus the certification exam. Includes Underwriting 101, Advanced Underwriting, FHA/VA Underwriting, Due Diligence/Manual UW, and 3 additional senior-topic classes. Check NAMU for current pricing.

How many practice questions should I do for NAMU CMMU?

Senior underwriting topics require deeper preparation. We recommend 200-300+ practice questions across all sections, with heavy focus on self-employed income analysis, non-QM products (bank statement, DSCR, asset depletion), and post-closing QC/repurchase scenarios. Use our AI tutor for any question you get wrong.

Is the NAMU CMMU recognized at large banks?

Yes — NAMU CMMU demonstrates senior-level underwriting capability and is recognized at independent mortgage banks, credit unions, large depositories, and warehouse lenders. Particularly valuable for roles in non-QM, jumbo, post-closing QC, and chief underwriter positions.

What's the career path after NAMU CMMU?

Common post-CMMU paths: Chief Underwriter, VP Credit, Director of Quality Control, non-QM/jumbo specialist, repurchase analyst, fraud investigator, or transition into commercial underwriting (NAMU CCUP). Many CMMUs also pursue advanced compliance credentials (CMCP, CRCM).