CRMP - Certified Reverse Mortgage Professional HECM Program and Products Questions and Answers

Question 1

A 65-year-old borrower is interested in a HECM for Purchase to buy a new primary residence.
They are selling their current home and will have significant cash proceeds.
What is a key feature of the HECM for Purchase program they should understand?

Accepted Answer

The borrower must make a significant down payment using their own funds, with the HECM financing the remainder.

Answer

The program requires no down payment if the borrower has sufficient equity in their previous home.

Answer

The loan requires monthly principal and interest payments, but only after the first five years.

Answer

The HECM for Purchase can only be used to buy a single-family residence and not a condominium.

Question 2

Which of the following is a fundamental eligibility requirement for a borrower to obtain an FHA-insured Home Equity Conversion Mortgage (HECM)?

Accepted Answer

The borrower must occupy the property as their principal residence.

Answer

The borrower must be at least 60 years of age.

Answer

The property must be free and clear of all liens.

Answer

The borrower must have a minimum FICO score of 640.

Question 3

A borrower is deciding between a fixed-rate HECM and an adjustable-rate HECM (ARM). They want the flexibility to access funds in the future as needed, rather than taking all the proceeds at closing. Which HECM product would be the most suitable choice?

Accepted Answer

An adjustable-rate HECM, because it offers a line of credit option.

Answer

A fixed-rate HECM, because the interest rate never changes.

Answer

A HECM for Purchase, as it's designed for flexibility.

Answer

A fixed-rate HECM, because it allows for multiple draws over the life of the loan.

Question 4

During the Financial Assessment for a HECM loan, what is the primary purpose of evaluating the borrower's credit history?

Accepted Answer

To assess the borrower's willingness and ability to meet future property charge obligations.

Answer

To determine the interest rate the borrower will receive.

Answer

To ensure the borrower meets a minimum required credit score.

Answer

To calculate the total loan proceeds the borrower is eligible for.

Question 5

A couple, ages 72 and 68, own a four-unit property and live in one of the units as their primary residence. They are interested in a HECM. Which statement accurately describes the eligibility of their property?

Accepted Answer

The property is eligible because it is a 2-4 unit dwelling with one unit occupied by the borrower as their principal residence.

Answer

The property is ineligible because HECMs are only for single-family homes.

Answer

The property is ineligible because it generates rental income.

Answer

The property is eligible only if all four units are occupied by family members.

Question 6

Which of the following is a key non-recourse feature of the FHA-insured HECM program?

Accepted Answer

The amount owed on the loan can never exceed the value of the home when the loan is repaid.

Answer

The borrower's heirs are not required to pay property taxes after the borrower passes away.

Answer

The lender can seize other assets from the borrower's estate if the home's value is insufficient to cover the loan balance.

Answer

The borrower is not responsible for homeowner's insurance premiums during the life of the loan.

A 65-year-old borrower is interested in a HECM for Purchase to buy a new primary residence.They are selling their current home and will have significant cash proceeds.What is a key feature of the HECM for Purchase program they should understand?

A 65-year-old borrower is interested in a HECM for Purchase to buy a new primary residence.
They are selling their current home and will have significant cash proceeds.
What is a key feature of the HECM for Purchase program they should understand?