Which part of the CLFP exam focuses on Credit and documentation?

• A. Part II
• B. Part IV
• C. Part I
• D. Part III

Answer: (D)

Underwriting credit and documenting the loan is tested in Part III. This portion centers on evaluating borrower credit quality, determining appropriate terms, and assembling the documentation that legally supports the financing. You’ll see topics like analyzing financial statements, calculating key ratios, structuring covenants, and preparing or reviewing the credit memo. It also covers securing the loan with proper liens and perfection actions, such as security agreements and UCC filings. Because the CLFP program groups content by the phase of the lending process, Part III is the section dedicated to credit analysis and documentation, so it’s the best fit for this topic.