CRMP Counseling and Disclosures 4

Question 1

Which of the following is a required topic in every HUD-approved HECM counseling session?

Accepted Answer

Financial implications of the loan, including costs and impact on estate

Answer

HUD mandates that counselors cover the financial implications of the HECM, including fees, interest accrual, and the impact on the estate.

Question 2

A borrower's adult child accompanies her to the counseling session and insists on answering questions on her behalf. What should the counselor do?

Accepted Answer

Redirect questions to the borrower directly and assess whether the borrower is participating freely

Answer

Counselors must ensure the borrower is an active, voluntary participant and not unduly influenced; redirecting questions helps assess this.

Question 3

Under HUD Handbook 7610.1, the HECM counselor's fee may NOT exceed:

Accepted Answer

$125 per session, waivable for borrowers who cannot afford it

Answer

HUD caps the counseling fee at $125 and requires agencies to waive or reduce the fee for borrowers who cannot afford it.

Question 4

The HECM Counseling Protocol requires that counselors discuss the potential impact of the loan on the borrower's eligibility for which type of benefits?

Accepted Answer

Means-tested benefits such as Medicaid and Supplemental Security Income (SSI)

Answer

HECM loan proceeds can affect eligibility for means-tested programs like Medicaid and SSI if funds are not spent in the month received.

Question 5

After completing a HECM counseling session, what must the counselor send to the lender?

Accepted Answer

The signed Certificate of HECM Counseling (HUD Form 92902)

Answer

The counselor issues HUD Form 92902, the Certificate of HECM Counseling, which is required before the lender can proceed with the loan.

(CRMP) Certified Reverse Mortgage Professional Practice Test

(CRMP) Certified Reverse Mortgage Professional Practice Test

CRMP Counseling and Disclosures 4