CRMP - Certified Reverse Mortgage Professional Counseling and Disclosures Questions and Answers

Question 1

A prospective borrower completes their mandatory HECM counseling on March 15th.
They wait to consider their options and do not sign a formal loan application with a lender until September 20th of the same year.
What is the status of their counseling certificate on the date of application?

Accepted Answer

It has expired, and the borrower must complete a new counseling session.

Answer

It is valid, as the certificate is good for one year from the date of the session.

Answer

It can be extended by the original counseling agency for an additional 90 days.

Answer

It is valid, provided the FHA case number is ordered within 10 days of its expiration.

Question 2

A HECM loan applicant is reviewing their initial disclosures. Which specific document is designed to show them the projected total cost of the loan as an annual rate over several different time horizons and at various home appreciation rates?

Accepted Answer

The Total Annual Loan Cost (TALC) Disclosure

Answer

The Loan Estimate (LE)

Answer

The Closing Disclosure (CD)

Answer

The Amortization Schedule

Question 3

A married couple is applying for a HECM. The husband is 72 and will be the sole borrower. His wife is 60 and will be a Non-Borrowing Spouse (NBS). To ensure the loan is FHA-insurable and the NBS protections are in place, what is the counseling requirement for the wife?

Accepted Answer

She must attend the counseling session.

Answer

She is strongly encouraged, but not required, to attend the counseling session.

Answer

She only needs to attend if she is also a co-owner of the property.

Answer

She can sign a waiver to bypass the counseling requirement.

Question 4

During a HUD-mandated HECM counseling session, which of the following topics is a counselor required to discuss with the prospective borrower?

Accepted Answer

The financial implications of the HECM and alternatives to a reverse mortgage.

Answer

A recommendation for a specific lender that offers the best interest rates.

Answer

The comparative advantages of different investment products for the loan proceeds.

Answer

A specific prediction of the home's future market value.

Question 5

A loan originator takes a complete and accurate HECM loan application from a client on Tuesday morning. According to the TILA-RESPA Integrated Disclosure (TRID) rule, what is the latest day the originator must mail or deliver the initial disclosure package, including the Loan Estimate?

Accepted Answer

Friday

Answer

Wednesday

Answer

Thursday

Answer

The following Monday

Question 6

Which of the following is a key disclosure that must be provided to a HECM borrower, explaining that while they do not make monthly mortgage payments, their loan balance will increase over time due to accruing interest and fees?

Accepted Answer

The Negative Amortization Disclosure

Answer

The Annual Escrow Account Disclosure Statement

Answer

The Notice of Right to Cancel

Answer

The Affiliated Business Arrangement Disclosure

A prospective borrower completes their mandatory HECM counseling on March 15th.They wait to consider their options and do not sign a formal loan application with a lender until September 20th of the same year.What is the status of their counseling certificate on the date of application?

A prospective borrower completes their mandatory HECM counseling on March 15th.
They wait to consider their options and do not sign a formal loan application with a lender until September 20th of the same year.
What is the status of their counseling certificate on the date of application?