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100+ Free NAMU CMU Practice Questions

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

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For VA loans, the term 'entitlement' refers to:

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Key Facts: NAMU CMU Exam

30

Exam Questions

NAMU

60 min

Time Limit

NAMU

75%

Passing Score

NAMU

$695

Program Fee

NAMU 2026

3

Maximum Attempts

NAMU policy

100

Practice Questions

Free on OpenExamPrep

NAMU-CMU is a 30-question, 60-minute open-book proctored online exam requiring 75% to pass. The $695 program bundles 4 training classes plus the exam. Up to 3 retake attempts with a 2-week cooling-off period between failures. Open to anyone — no prerequisite licensing or experience required. Targets residential mortgage underwriters at the entry-to-intermediate level.

Sample NAMU CMU Practice Questions

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

1Under the ATR/QM rule, what is the maximum debt-to-income (DTI) ratio for a General QM loan with an Average Prime Offer Rate (APOR) spread below the threshold?
A.28%
B.36%
C.43% (legacy) / no hard cap under price-based General QM
D.50%
Explanation: The CFPB's 2021 General QM amendment replaced the 43% DTI cap with a price-based test using APOR spread. The 43% DTI is the historic cap; under current General QM, pricing relative to APOR (not DTI) determines QM status. Underwriters must still verify ATR using the 8 ATR factors.
2Which document, required under TRID, must be delivered to the borrower at least 3 business days before consummation?
A.Loan Estimate (LE)
B.Closing Disclosure (CD)
C.Initial Escrow Account Disclosure
D.Notice of Right to Cancel
Explanation: TRID (TILA-RESPA Integrated Disclosure) requires the Closing Disclosure (CD) be delivered/received at least 3 specific business days before consummation. The Loan Estimate must go out within 3 business days of application, a different timing rule.
3A salaried W-2 borrower earns $7,500/month base plus $1,200/month overtime. The overtime has been received for 14 months. How should the underwriter typically treat the overtime under Fannie Mae guidelines?
A.Exclude all overtime since it is variable
B.Use a 24-month average if the underwriter documents likelihood of continuance
C.Use the most recent month only
D.Use 50% of the overtime
Explanation: Fannie Mae requires a 2-year history of variable income (overtime, bonus, commission) averaged over 24 months, with likelihood of continuance documented by the employer. Less than 2 years requires strong justification and may be ineligible.
4On a conventional conforming loan, what credit score model is required by Fannie Mae and Freddie Mac as of the FHFA bi-merge transition?
A.FICO 9 only
B.Classic FICO (FICO 2/4/5) only
C.FICO 10T and VantageScore 4.0 (bi-merge)
D.VantageScore 3.0 only
Explanation: FHFA directed Fannie Mae and Freddie Mac to transition to FICO 10T and VantageScore 4.0, and to move from a tri-merge to a bi-merge credit report. The transition includes a single-score model selection per loan and continues to roll out through 2026.
5On a Desktop Underwriter (DU) decision, an 'Approve/Eligible' recommendation means:
A.The loan must still be manually underwritten
B.The loan meets Fannie Mae credit risk requirements and eligibility rules
C.The loan is automatically funded with no further underwriting
D.The borrower's credit is poor
Explanation: DU 'Approve/Eligible' indicates the loan meets Fannie Mae's automated credit risk assessment AND Selling Guide eligibility. The underwriter must still validate data, review documents, and verify representations match findings.
6Which of the following is NOT one of the eight ATR (Ability-to-Repay) factors a creditor must consider under Reg Z §1026.43(c)?
A.Current or reasonably expected income or assets
B.Employment status
C.Borrower's marital status
D.Monthly debt-to-income ratio or residual income
Explanation: Reg Z requires consideration of 8 ATR factors: income/assets, employment, mortgage payment, simultaneous loan payment, other mortgage-related obligations, current debt obligations/alimony/child support, DTI or residual income, and credit history. Marital status is NOT one of them and is a protected class under Reg B (ECOA).
7A self-employed borrower files Schedule C. After tax return analysis, the underwriter sees $80,000 net profit, $5,000 depreciation, $3,000 business use of home, and $2,000 amortization. What is the typical qualifying income (annual) using Fannie Mae's cash flow add-backs?
A.$80,000
B.$85,000
C.$90,000
D.$70,000
Explanation: Net profit ($80,000) + depreciation ($5,000) + business-use-of-home ($3,000) + amortization ($2,000) = $90,000. Non-cash deductions like depreciation, amortization, depletion, and business use of home are added back per Fannie Mae's Form 1084 Cash Flow Analysis.
8On an FHA loan, what is the maximum DTI ratio for a manually underwritten file with no compensating factors?
A.31% housing / 43% total
B.36% housing / 45% total
C.40% housing / 50% total
D.No DTI cap when AUS approved
Explanation: FHA Handbook 4000.1 sets manual underwriting DTI limits at 31% front-end / 43% back-end with no compensating factors. Higher ratios (up to 40%/50%) require documented compensating factors such as reserves or limited payment shock.
9What is the maximum loan-to-value (LTV) for an FHA purchase loan when the borrower has a FICO of 580 or higher?
A.80%
B.90%
C.96.5%
D.100%
Explanation: FHA allows 96.5% LTV (3.5% minimum down payment) for borrowers with FICO scores of 580 or higher. Borrowers with 500-579 are capped at 90% LTV. Below 500 is ineligible.
10Under VA loan guidelines, what is the residual income standard primarily used for?
A.Calculating the funding fee
B.Verifying the borrower has enough disposable income after monthly obligations
C.Determining property value
D.Setting the interest rate
Explanation: VA residual income measures the dollars left after PITI, taxes, and all monthly debts. VA Lenders Handbook (VA Pamphlet 26-7) publishes minimum residual income by region and family size. It's a key compensating factor and primary VA affordability test.

About the NAMU CMU Exam

The NAMU Certified Mortgage Underwriter (NAMU-CMU) is the entry-level underwriting credential from the National Association of Mortgage Underwriters. After completing 4 training classes (Mortgage Underwriting 101, FHA/VA Underwriting, Credit Analysis, Due Diligence/Manual UW), candidates sit for a 30-question, 60-minute open-book online proctored exam with a 75% pass threshold. Topics span credit analysis, income/DTI, FNMA/FHLMC selling guides, FHA 4000.1, VA Lenders Handbook, USDA-RD, ATR/QM, TRID, AUS findings (DU/LP), condo/PUD/manufactured housing, and fraud red flags.

Questions

30 scored questions

Time Limit

60 minutes

Passing Score

75%

Exam Fee

$695 (training + exam bundle) (National Association of Mortgage Underwriters (NAMU))

NAMU CMU Exam Content Outline

15%

Credit Analysis & FICO

Credit reports, derogatory credit (lates, collections, judgments), bankruptcies (Ch.7/Ch.13 waiting periods), foreclosures/short sales, FICO 10T and VantageScore 4.0 transition under FHFA bi-merge

20%

Income & DTI

W-2 wage earner verification (paystubs, 2-yr W-2s, VVOE), self-employed analysis with Form 1084 cash-flow add-backs, variable income (bonus/OT 2-yr avg), DTI front-end/back-end, student loans (1% / 0.5% / IDR), child support, non-taxable income gross-up

10%

Asset Documentation

Large deposit sourcing (>50% of monthly income), gift funds (letter, donor source, transfer evidence), reserves by occupancy/units, retirement at 60-70%, seasoning of funds (60 days FNMA), VOD

15%

FNMA / FHLMC Selling Guides

FNMA primary 97% LTV / cash-out 80% LTV, LLPAs, occupancy types (primary/second/investment), IPC/seller concessions tiers (3%/6%/9%), HomeReady/Home Possible, conforming and HighBalance loan limits

15%

FHA / VA / USDA

FHA 4000.1: 96.5% LTV (580+ FICO), 90% LTV (500-579), UFMIP 1.75%, MIP for life when LTV >90%. VA: entitlement, residual income, funding fee, COE. USDA-RD Guaranteed: 115% AMI, eligible rural areas, subsidy recapture (Direct only)

15%

Compliance (ATR/QM, TRID, ECOA, RESPA, HMDA)

Reg Z 8 ATR factors, QM safe harbor vs rebuttable presumption, 3% points-and-fees cap, TRID LE within 3 BD of app, CD 3 BD before consummation, tolerance categories (0%/10%/unlimited), HOEPA §32, HPML §35, ECOA adverse action 30 days, HMDA Reg C demographics, RESPA §6 servicing transfer

10%

Property, Appraisal & Fraud

Form 1004 URAR / 1025 (2-4 unit) / 1073 (condo) / 1004C (manufactured), condo warrantability (full review thresholds: 20% single entity, 35% commercial), PUD review, manufactured housing (post-6/15/76, permanent foundation, real property), fraud red flags (occupancy, income, asset, illegal flipping)

How to Pass the NAMU CMU Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 30 questions
  • Time limit: 60 minutes
  • Exam fee: $695 (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 CMU Study Tips from Top Performers

1Master TRID timing rules: LE within 3 business days of application; CD at least 3 business days before consummation; tolerance categories (0%/10%/unlimited).
2Memorize FNMA LTV/seller-concession tiers: 97% primary purchase, 80% cash-out; 3%/6%/9% IPC tiers by LTV.
3Know the 8 ATR factors verbatim — they appear in multiple questions framed as 'which of these is NOT an ATR factor'.
4Practice quick Form 1084 add-back math: depreciation + amortization + business-use-of-home + casualty losses + depletion (NOT COGS or wages).
5Drill FHA 4000.1 specifics: 96.5% LTV at FICO 580+, 90% at FICO 500-579, UFMIP 1.75%, MIP for life when LTV >90%.

Frequently Asked Questions

What is the NAMU CMU exam format?

The NAMU CMU exam is a 30-question, 60-minute open-book online proctored exam covering credit analysis, income/DTI, FNMA/FHLMC/FHA/VA/USDA, ATR/QM, TRID, and fraud red flags. Questions are multiple-choice and true/false. You need 75% to pass and can re-attempt up to 3 times with a 2-week cooling-off period between failures.

How much does the NAMU CMU cost?

The NAMU CMU program costs approximately $695, which bundles the 4 required training classes (Mortgage Underwriting 101, FHA/VA Underwriting for Underwriters, Advanced Underwriting, Due Diligence/Manual UW) plus the certification exam. Check NAMU's official site for current pricing.

Do I need experience to take the NAMU CMU?

No formal experience requirement to enroll. NAMU recommends a foundation in residential mortgage operations (processing, underwriting, closing) but the program is designed for entry-to-intermediate underwriters and career changers. The 4 training classes provide the underlying knowledge.

How is the NAMU CMU different from the NAMU CMMU?

NAMU CMU is entry-level (4 training classes, 30-question exam). NAMU CMMU (Certified Master Mortgage Underwriter) is senior-level: 7 training classes covering advanced topics (complex self-employed, non-QM, jumbo, second/investment, post-closing QC, fraud schemes). Same 30-question exam format and 75% pass threshold.

How many questions should I practice before the exam?

We recommend completing at least 100-200 practice questions covering all major topics (credit, income, FNMA, FHA, VA, ATR/QM, TRID) before sitting for the 30-question NAMU CMU exam. Drill weak areas using our AI tutor for deep explanations of why each answer is correct.

Is the NAMU CMU recognized by employers?

The NAMU CMU is widely recognized in the mortgage industry, particularly at independent mortgage banks, credit unions, and community lenders. It demonstrates baseline residential underwriting competency. For roles at larger banks or in complex products (jumbo, non-QM), the NAMU CMMU or additional credentials may be preferred.

What career paths follow the NAMU CMU?

Common post-CMU paths: Senior Underwriter, NAMU CMMU (Master Underwriter), specialty roles in FHA/VA/USDA underwriting, post-closing QC, default management, or training. Some underwriters cross-train into commercial via NAMU CCUP. State-licensed processors may pursue NAMP CMLP.