Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
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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

  1. A CRMP is aware that their company is using an appraisal management company with a financial relationship to the lender. What should they do?

    Answer: Disclose the relationship to the borrower and ensure appraisal independence requirements are met

    Lender-appraiser financial relationships must comply with independence requirements and be disclosed to protect borrower interests.

  2. Under NRMLA's Best Practices, what is required when a CRMP cannot serve a prospective borrower competently?

    Answer: Refer the borrower to another qualified professional and decline the engagement

    Professional duty requires declining or redirecting engagements that exceed a practitioner's current competence.

  3. Which scenario best illustrates the ethical concept of 'suitability' in reverse mortgage counseling?

    Answer: A CRMP advises a borrower whose only goal is short-term liquidity to consider a HELOC first

    Suitability means matching the borrower's actual goals with the product best suited to meet them, even if that product is not a reverse mortgage.

  4. A CRMP receives a complaint from a borrower about the handling of their loan. According to professional ethics standards, what is the appropriate first step?

    Answer: Acknowledge the complaint promptly, investigate thoroughly, and respond in good faith

    Ethical complaint handling requires prompt acknowledgment, fair investigation, and transparent response regardless of perceived merit.

  5. What does 'fiduciary-like' responsibility mean in the context of a CRMP's relationship with borrowers?

    Answer: The CRMP prioritizes borrower interests over personal gain even when not legally mandated

    While not always legally defined as fiduciaries, CRMPs are expected to act in the borrower's best interest as a professional standard.

  6. A colleague CRMP asks you to co-sign a loan application you have not reviewed. What is the ethical response?

    Answer: Decline until you have independently reviewed and verified the application's accuracy

    Co-signing any document without independent review makes you professionally and potentially legally responsible for its accuracy.

  7. The NRMLA Code of Ethics applies to which of the following parties?

    Answer: All NRMLA member companies and their employees engaged in reverse mortgage activities

    NRMLA's Code of Ethics covers all member firms and their staff involved in reverse mortgage transactions, not just designated professionals.