CRMP Counseling and Disclosures 2

Question 1

Which federal agency oversees the approval and oversight of HUD-approved reverse mortgage counseling agencies?

Accepted Answer

The Office of Housing Counseling (OHC) within HUD

Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The Federal Housing Finance Agency (FHFA)

Answer

The Federal Reserve Board

Question 2

A borrower wishes to complete HECM counseling by telephone rather than in person. Under HUD guidelines, this is:

Accepted Answer

Permitted as an option available to all eligible borrowers

Answer

Prohibited — in-person counseling is always required

Answer

Permitted only if the borrower lives more than 50 miles from a counselor

Answer

Permitted only with lender written approval

Question 3

During HECM counseling, the counselor is required to provide the borrower with a disclosure about the total annual loan cost (TALC). The TALC disclosure helps the borrower understand:

Accepted Answer

The projected annual average cost of the loan expressed as a rate

Answer

The exact interest rate locked in at closing

Answer

The monthly servicing fee charged by the lender

Answer

The maximum principal limit available

Question 4

Which of the following parties is explicitly prohibited from selecting or referring the borrower to a specific HECM counseling agency?

Accepted Answer

The lender or mortgage broker originating the loan

Answer

A HUD-approved housing counseling intermediary

Answer

A nonprofit organization not affiliated with the lender

Answer

An Area Agency on Aging

Question 5

A counselor discovers during a HECM session that the borrower has an existing tax lien on the property. What is the most appropriate counseling action?

Accepted Answer

Discuss how the lien may affect loan proceeds and eligibility, and advise the borrower to address it

Answer

Refuse to complete the session until the lien is resolved

Answer

Inform the borrower that they are ineligible and end the session

Answer

Notify the lender immediately without informing the borrower

Question 6

Under the HECM program, the Certificate of HECM Counseling is valid for how long after the counseling session date?

Accepted Answer

180 days

Answer

30 days

Answer

90 days

Answer

One year

Question 7

If a borrower's non-borrowing spouse is present during HECM counseling, what is the counselor's responsibility regarding that spouse?

Accepted Answer

Include the non-borrowing spouse in counseling and explain their rights and risks

Answer

Exclude the non-borrowing spouse from all counseling discussions

Answer

Obtain separate written consent from the non-borrowing spouse before discussing anything

Answer

Advise the non-borrowing spouse to seek independent legal counsel and end the session