Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
← All CRMP Flashcard Decks

Reverse Mortgage Products & Loan Origination 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 Reverse Mortgage Products & Loan Origination flashcards as text

  1. What is the maximum origination fee a lender can charge on a HECM with a home value of $400,000?

    Answer: $6,000

    HECM origination fees are capped at $6,000, calculated as the greater of $2,500 or 2% of the first $200,000 plus 1% of the remainder, not to exceed $6,000.

  2. Under a HECM modified tenure plan, what does the borrower receive compared to a standard tenure plan?

    Answer: A combination of monthly payments plus a line of credit

    Modified tenure combines ongoing monthly tenure payments with a reserved line of credit, splitting the Principal Limit between the two disbursement types.

  3. Which statement about the HECM for Purchase right of rescission is correct?

    Answer: There is no right of rescission on a HECM for Purchase of a primary residence

    HECM for Purchase transactions are purchase money mortgages and therefore do not carry the standard 3-day right of rescission that refinances do.

  4. A HECM servicer must notify the borrower of a due-and-payable event and allow how many days for the heirs to satisfy or sell the property?

    Answer: 6 months, with possible extensions up to 12 months

    After a due-and-payable notice, heirs typically have 6 months to sell or refinance, with FHA allowing extensions up to 12 months total.

  5. A HECM borrower's home sells for less than the outstanding loan balance. What protects the borrower's heirs from owing the deficiency?

    Answer: FHA's mutual mortgage insurance fund, making HECMs non-recourse loans

    HECMs are non-recourse loans insured by FHA, so heirs never owe more than the home's appraised value or sale price.

  6. Which document summarizes all HECM loan costs and must be provided to the borrower at least 3 business days before closing?

    Answer: Closing Disclosure

    Under TRID, the Closing Disclosure must be delivered at least 3 business days before consummation of the loan.

  7. When counseling a HECM applicant, a HUD-approved counselor must cover which of the following topics?

    Answer: Alternatives to a reverse mortgage such as forward refinancing or home equity loans

    HUD requires counselors to discuss alternatives to a HECM, ensuring borrowers consider all options before proceeding.