CRMP - Certified Reverse Mortgage Professional Borrower Qualification Requirements Questions and Answers

Question 1

A prospective HECM borrower completed the mandatory counseling session with a HUD-approved counselor. Which of the following statements about this counseling is correct?

Accepted Answer

The counseling session is designed to provide impartial education about the loan's features, costs, and obligations.

Answer

The counselor is responsible for approving the HECM loan application.

Answer

The lender selects the counseling agency and schedules the appointment for the borrower.

Answer

Counseling is optional if the borrower has a strong financial background and a high credit score.

Question 2

During the Financial Assessment for a HECM loan, what is the consequence if a borrower is found to have delinquent federal debt?

Accepted Answer

The borrower is automatically disqualified from obtaining a HECM.

Answer

The borrower must pay a higher mortgage insurance premium.

Answer

A Life Expectancy Set-Aside (LESA) will be established to pay the debt.

Answer

The loan amount will be reduced by the amount of the federal debt.

Question 3

A married couple applies for a HECM. The husband is 68, but his wife is 60. How does the wife's age impact their eligibility and the loan terms?

Accepted Answer

The wife can be designated as an 'Eligible Non-Borrowing Spouse', which allows the loan to proceed but affects the principal limit.

Answer

They are ineligible to apply until the wife turns 62.

Answer

The wife must be removed from the property title to qualify.

Answer

The loan will be approved, and the principal limit will be based solely on the 68-year-old husband's age.

Question 4

Which of the following property types is generally INELIGIBLE for an FHA-insured HECM?

Accepted Answer

A cooperative unit (co-op).

Answer

A unit in an FHA-approved condominium project.

Answer

A four-unit property where the borrower occupies one unit as their primary residence.

Answer

A manufactured home that meets FHA requirements.

Question 5

A HECM applicant has a history of some late payments on credit cards but has consistently paid their property taxes and homeowners insurance on time. During the Financial Assessment, how is their credit history most likely to be viewed?

Accepted Answer

The lender will focus on the overall pattern of financial management, with special emphasis on property charge payments.

Answer

They will be automatically disqualified due to the late payments.

Answer

A minimum FICO score of 640 is required to offset the late payments.

Answer

They will be required to establish a Life Expectancy Set-Aside (LESA) regardless of their residual income.

Question 6

What is the primary purpose of calculating a borrower's residual income during the HECM Financial Assessment?

Accepted Answer

To ensure the borrower can afford ongoing property charges like taxes, insurance, and maintenance.

Answer

To determine the maximum principal limit the borrower can receive.

Answer

To calculate the interest rate that will be charged on the loan.

Answer

To verify the borrower is at least 62 years of age.

A prospective HECM borrower completed the mandatory counseling session with a HUD-approved counselor.Which of the following statements about this counseling is correct?

A prospective HECM borrower completed the mandatory counseling session with a HUD-approved counselor.
Which of the following statements about this counseling is correct?