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

HUD's Office of Housing Counseling (OHC) is responsible for approving and overseeing agencies that provide HECM counseling.

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

HUD allows telephone counseling as an option for all borrowers, not just those who live far from counseling agencies.

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 TALC expresses the overall projected cost of a reverse mortgage as an annualized rate, similar to an APR.

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

HUD rules bar lenders and brokers from steering borrowers to a particular counselor to preserve counseling independence.

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

Counselors should educate borrowers on how outstanding liens can reduce net proceeds and affect closing, and encourage the borrower to resolve the issue.

(CRMP) Certified Reverse Mortgage Professional Practice Test

(CRMP) Certified Reverse Mortgage Professional Practice Test

CRMP Counseling and Disclosures 2