CRMP CRMP Loan Servicing and Post-Closing Requirements Questions and Answers

Question 1

What happens to a HECM loan if the borrower permanently moves out of the property for more than 12 consecutive months?

Accepted Answer

The loan becomes due and payable

Answer

The loan is automatically forgiven

Answer

The interest stops accruing

Answer

The borrower can transfer the loan to a new property

Question 2

Which of the following is a borrower's ongoing obligation under a HECM loan?

Accepted Answer

Paying property taxes and homeowner's insurance

Answer

Making monthly principal payments

Answer

Maintaining a minimum credit score of 620

Answer

Notifying HUD of any income changes

Question 3

What is a HECM 'due and payable' event?

Accepted Answer

An event that triggers loan repayment, such as the borrower's death or sale of the home

Answer

When the loan balance exceeds the home value

Answer

When the borrower requests a lump sum disbursement

Answer

A scheduled annual review of the loan balance

Question 4

How long do eligible non-borrowing spouses have to remain in the home after the borrowing spouse's death under current HUD guidelines?

Accepted Answer

For as long as they meet deferral period requirements

Answer

6 months

Answer

1 year

Answer

5 years

Question 5

What is the maximum timeframe a borrower's estate has to repay or sell the home after a HECM becomes due and payable?

Accepted Answer

6 months, with possible extensions up to 12 months

Answer

30 days

Answer

2 years

Answer

No deadline exists

Question 6

Which servicer action is required when a HECM borrower is delinquent on property charges?

Accepted Answer

Offering a repayment plan or LESA set-aside options

Answer

Immediate foreclosure filing

Answer

Automatic loan acceleration

Answer

Reducing the borrower's available credit line