Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
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Regulatory Compliance & Ethical Practices 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 Regulatory Compliance & Ethical Practices flashcards as text

  1. A borrower's non-borrowing spouse is 58 years old. Under current HUD guidelines, what protection applies to this spouse?

    Answer: The spouse may remain in the home as a Deferral Period eligible non-borrowing spouse if HUD criteria are met

    HUD's Mortgagee Letter 2014-07 and subsequent guidance established the Deferral Period allowing eligible non-borrowing spouses to remain in the home after the borrower's death if specific conditions are met.

  2. Which of the following is a required disclosure under the HECM program related to loan costs?

    Answer: Total Annual Loan Cost (TALC)

    The Total Annual Loan Cost (TALC) disclosure is required under Regulation Z for reverse mortgages to help borrowers compare costs across different loan scenarios.

  3. Under NRMLA's Code of Ethics, what must an originator do if they identify a potential conflict of interest?

    Answer: Disclose the conflict to the borrower and resolve or withdraw

    NRMLA's ethical standards require members to disclose conflicts of interest to borrowers and either resolve the conflict or withdraw from the transaction.

  4. The Home Ownership and Equity Protection Act (HOEPA) primarily protects reverse mortgage borrowers from:

    Answer: Predatory high-cost loan terms

    HOEPA establishes protections against predatory lending by imposing restrictions on high-cost loans, including certain reverse mortgage products.

  5. What is the minimum waiting period between HECM counseling completion and loan application?

    Answer: No mandatory waiting period

    There is no mandatory waiting period between counseling and application, though the counseling certificate must be issued before the application can be processed.

  6. Under the Fair Housing Act, which practice is prohibited in the marketing of reverse mortgages?

    Answer: Steering eligible borrowers away from products based on race

    The Fair Housing Act prohibits steering—directing borrowers toward or away from products based on protected class characteristics such as race.

  7. A HECM borrower fails to maintain homeowner's insurance for six months. What is the servicer's required action?

    Answer: Issue a default notice and allow the borrower time to cure before escalating

    Servicers must follow HUD's loss mitigation procedures, which include notifying the borrower and providing an opportunity to cure the insurance default before proceeding.