Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
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Financial Assessment & Borrower Eligibility 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 Financial Assessment & Borrower Eligibility flashcards as text

  1. A borrower has a co-signer on an auto loan. How should the co-signed debt be treated in the financial assessment cash flow analysis?

    Answer: Included as a full monthly obligation unless evidence shows the primary borrower is paying

    Co-signed debts are included as full obligations unless the lender has 12 months of documented payment history showing the primary borrower is making payments.

  2. Which of the following would be considered a 'property charge' for HECM financial assessment purposes?

    Answer: HOA fees for a condominium

    HOA fees are property-related charges that must be sustained, along with property taxes and homeowner's insurance, and are included in property charge analysis.

  3. A borrower receives pension income from a plan that will terminate in 3 years. How should this income be treated in the financial assessment?

    Answer: Counted only for the remaining 3 years when projecting sustainability

    Temporary income with a defined end date should be considered only for its remaining duration when assessing long-term ability to pay property charges.

  4. Under HECM rules, which property type is NOT eligible as a primary residence for a HECM loan?

    Answer: Investment property used as a rental

    A HECM requires the property to be the borrower's primary residence; investment or rental properties do not qualify.

  5. When evaluating rental income from a multi-unit property for a HECM financial assessment, how much of the gross rental income is typically counted?

    Answer: 75% of gross rental income

    HUD typically allows 75% of gross rental income to account for vacancies and maintenance expenses when calculating effective income.

  6. Which of the following credit events typically triggers a 'compensating factors' review rather than automatic disqualification during HECM financial assessment?

    Answer: A single 30-day late mortgage payment 15 months ago

    A single isolated late payment outside the 12-month look-back window may be addressed with compensating factors rather than causing automatic adverse action.

  7. What is the significance of the 'willingness to pay' versus 'capacity to pay' distinction in HECM financial assessment?

    Answer: Willingness reflects credit history while capacity reflects income and cash flow

    HUD's financial assessment evaluates both willingness (credit history showing past payment behavior) and capacity (income and residual cash flow) separately.