Ethics and Professional Conduct Flashcards
7 cards from real CRMP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics and Professional Conduct flashcards as text
A borrower with early-stage dementia wants to proceed with a reverse mortgage without involving family. What is the most ethical course of action?
Answer: Assess capacity, consult with a counselor, and consider involving appropriate support parties
Cognitive impairment raises capacity concerns that require careful assessment and may necessitate involving counselors or legal guardians.
How should a CRMP respond when a borrower asks them to recommend an elder law attorney?
Answer: Provide a list of qualified attorneys without steering toward one who pays referral fees
CRMPs may provide referrals but must avoid steering based on personal financial benefit to preserve impartiality.
What is the primary purpose of the mandatory independent housing counseling required before a HECM loan closes?
Answer: To ensure borrowers receive unbiased information about the loan and alternatives from an independent source
Independent counseling protects borrowers by providing objective information free from any lender influence.
A CRMP discovers that a borrower provided false information on their loan application. What is the appropriate response?
Answer: Halt the process and address the discrepancy with the borrower and lender per compliance requirements
CRMPs cannot knowingly participate in misrepresentation and must escalate discovered inaccuracies through proper channels.
Which borrower population characteristic most heightens the ethical obligations of a CRMP?
Answer: Advanced age, potential cognitive decline, and fixed-income dependence
Elderly borrowers on fixed incomes with potential cognitive vulnerabilities require heightened duty of care and clear communication.
A CRMP is asked by their employer to meet a monthly quota by rushing borrowers through the process. What is the ethical response?
Answer: Maintain proper disclosure and counseling timelines regardless of production pressure
Production pressure does not override the ethical duty to ensure borrowers have adequate time to understand loan terms.
Which action by a CRMP would most directly violate the principle of non-maleficence (do no harm)?
Answer: Recommending a reverse mortgage to a borrower whose primary goal could be better served by a different product
Recommending an unsuitable product when a better alternative exists causes direct financial harm to the borrower.