CRMP Counseling Protocols & Client Communication 3

Question 1

A lender refers a client to a specific counseling agency. Under HUD rules, this arrangement:

Accepted Answer

Is prohibited because counseling must be independent of the lender

Answer

HUD prohibits lenders from steering borrowers to specific counselors or agencies to preserve the independence of the counseling process.

Question 2

Which of the following topics is REQUIRED to be covered in every HUD-approved HECM counseling session?

Accepted Answer

Options other than a reverse mortgage, such as selling or refinancing

Answer

Counselors are required to discuss alternatives to a HECM, including selling, downsizing, home equity loans, and public benefit programs, so borrowers consider all options.

Question 3

A client who completed HECM counseling six months ago now wants to proceed with a different lender. Must the client complete counseling again?

Accepted Answer

It depends on whether the counseling certificate has expired under the lender's guidelines, typically 180 days

Answer

Most lenders and HUD guidelines treat counseling certificates as valid for 180 days, so a certificate issued six months ago may be expiring or already expired.

Question 4

When conducting telephone counseling for a HECM applicant, the counselor should:

Accepted Answer

Send required materials in advance and confirm the client received and reviewed them before the session

Answer

For telephone counseling, the counselor must ensure the client has received and had time to review required materials before the session begins.

Question 5

A client tells the HECM counselor that they plan to use loan proceeds to help a grandchild pay for college. How should the counselor respond?

Accepted Answer

Acknowledge the goal, explain how the loan works, and ensure the client understands long-term implications

Answer

Counselors should not judge borrowers' spending intentions but must ensure they understand how the loan affects their equity, estate, and financial future.

(CRMP) Certified Reverse Mortgage Professional Practice Test

(CRMP) Certified Reverse Mortgage Professional Practice Test

CRMP Counseling Protocols & Client Communication 3