CRMP - Certified Reverse Mortgage Professional Ethics and Counseling Requirements Questions and Answers

Question 1

A Certified Reverse Mortgage Professional (CRMP) is approached by a client who is insistent on using the proceeds of their HECM loan to purchase a specific annuity product recommended by their financial advisor.
The CRMP has concerns that this might not be in the client's best interest.
According to the NRMLA Code of Ethics, what is the CRMP's primary responsibility?

Accepted Answer

To advise the consumer to seek independent legal, tax, or investment counsel regarding the annuity purchase.

Answer

To process the loan as requested, as the client has already received outside financial advice.

Answer

To refuse to originate the loan unless the client agrees not to purchase the annuity.

Answer

To report the financial advisor to the appropriate regulatory body for providing potentially unsuitable advice.

Question 2

During a mandatory HECM counseling session, the HUD-approved counselor must cover several key topics to ensure the borrower's understanding. Which of the following is a topic the counselor is explicitly prohibited from discussing?

Accepted Answer

Steering the borrower toward a specific lender or loan product.

Answer

The financial and tax implications of the reverse mortgage.

Answer

The total annual loan cost (TALC) and loan amortization.

Answer

Alternatives to a reverse mortgage, such as downsizing or other assistance programs.

Question 3

A CRMP is designing a new direct mail advertisement. According to NRMLA's ethical advertising standards, which of the following practices is explicitly considered misleading and should be avoided?

Accepted Answer

Using the phrase 'government benefit' or implying the loan is a government program.

Answer

Including a clear and conspicuous disclosure of the company's NMLS number.

Answer

Providing a loan comparison chart showing different payment options.

Answer

Featuring a testimonial from a satisfied client that reflects their honest experience.

Question 4

A prospective borrower completes their mandatory reverse mortgage counseling session but decides to wait a few months before proceeding. How long is the HECM counseling certificate valid for the purpose of applying for a loan?

Accepted Answer

180 days from the date of issuance.

Answer

30 days from the date of issuance.

Answer

90 days from the date of issuance.

Answer

1 year from the date of issuance.

Question 5

An elderly client is applying for a reverse mortgage. Their adult child, who holds power of attorney, is heavily involved and pressures the CRMP to expedite the process and disburse funds directly into a joint account they share with the parent. What ethical principle from the CRMP Code of Ethics is most at risk in this scenario?

Accepted Answer

Integrity, by avoiding conduct that could involve deceit or misrepresentation and ensuring the transaction is fair to the client.

Answer

Competence, as the CRMP must be knowledgeable about loan processing timelines.

Answer

Fairness, by ensuring all clients are treated equally without bias.

Answer

Confidentiality, by protecting the client's personal financial information.

Question 6

Which of the following is a requirement for maintaining the Certified Reverse Mortgage Professional (CRMP) designation in good standing?

Accepted Answer

Completing 8 hours of approved continuing education annually.

Answer

Closing a minimum of 10 reverse mortgage loans per year.

Answer

Attending the NRMLA annual conference every year.

Answer

Publishing an article on a reverse mortgage topic in an industry journal.