10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free CRU questions are organized by exam domain, so you can see how each part of the Certified Residential Underwriter blueprint is tested. Reveal the answer and explanation under each question.
A borrower is purchasing a primary residence. The loan file shows verified employment income, acceptable credit history, sufficient assets, and an appraisal supporting the property value. Which underwriting function is responsible for integrating these factors into an overall credit decision?
Correct answer: A - Final review of the complete risk profile
An underwriter reviews a borrower's overtime income. The borrower has received overtime pay consistently, but the amount fluctuates from year to year. What is the most appropriate underwriting approach?
Correct answer: B - Evaluate documentation, history, and likelihood of continuance
A conventional loan appraisal includes a condition that affects the marketability of the property. What should the underwriter primarily evaluate before approving the loan?
Correct answer: C - Whether the collateral risk is acceptable under applicable requirements
A self-employed borrower provides a personal Form 1040 tax return with business income reported on supporting schedules. Which action best reflects sound tax return analysis?
Correct answer: A - Analyze the reported income sources and supporting documentation
A loan receives an automated underwriting finding that requires additional documentation. What is the underwriter's best response?
Correct answer: B - Review the findings and satisfy applicable documentation requirements
During the mortgage loan lifecycle, which function is primarily responsible for ensuring loans are prepared for sale to investors and meet quality standards?
Correct answer: C - Funding, shipping, and quality control functions
A loan originator asks an underwriter to overlook missing disclosures because the borrower is in a hurry to close. Which regulatory principle should guide the underwriter's response?
Correct answer: A - Compliance requirements must be satisfied before closing
A borrower submits altered employment documents to improve qualification. Which type of fraud risk is most directly involved?
Correct answer: B - Borrower or loan-level misrepresentation
Two borrowers have similar income and debt profiles, but one has a substantially lower credit score. What is the primary purpose of considering credit scores in underwriting?
Correct answer: C - To estimate credit risk based on historical credit behavior
A borrower applies for a jumbo mortgage that exceeds standard conforming loan limits. Which underwriting consideration becomes especially important?
Correct answer: A - The need to evaluate additional risk factors and applicable jumbo requirements
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