CRMP Ethics and Counseling Requirements 2

Question 1

Under HUD rules, how soon before closing must a HECM borrower complete independent counseling?

Accepted Answer

At least 7 days before signing the loan application

Answer

At least 3 business days before closing

Answer

There is no minimum waiting period after counseling

Answer

At least 30 days before closing

Question 2

A CRMP discovers that a borrower's adult child is pressuring the parent to proceed with a reverse mortgage to pay off the child's debts. What is the most ethical action?

Accepted Answer

Alert the independent counselor and consider filing an elder financial abuse report

Answer

Proceed with the loan since the borrower signed the application

Answer

Ask the adult child to leave future meetings

Answer

Offer a lower loan amount to reduce risk

Question 3

Which agency approves and oversees the HECM counseling agencies that provide mandatory independent counseling?

Accepted Answer

HUD

Answer

CFPB

Answer

FHA

Answer

NMLS

Question 4

A CRMP ethically must disclose which of the following to a prospective reverse mortgage borrower?

Accepted Answer

All material facts that could affect the borrower's decision

Answer

Competitor loan pricing only if asked

Answer

Only information required by state law

Answer

Proprietary lender guidelines

Question 5

During HECM counseling, what must the counselor provide to each borrower?

Accepted Answer

A certificate of counseling completion and information on alternatives

Answer

A guarantee of loan approval

Answer

A HUD-approved list of other reverse mortgage products only

Answer

Loan pricing from at least three lenders

Question 6

A borrower tells their CRMP they do not want their non-borrowing spouse included in the counseling session. What should the CRMP advise?

Accepted Answer

Encourage the non-borrowing spouse to attend because their rights under the loan are significant

Answer

Respect the borrower's preference and exclude the spouse

Answer

Require the spouse to attend or decline the application

Answer

Have the spouse sign a waiver instead of attending

Question 7

Which statement best describes the CRMP's duty when a client's cognitive ability appears diminished?

Accepted Answer

Pause the process and consult with appropriate parties such as a trusted family member or legal counsel

Answer

Proceed if the borrower can sign their name

Answer

Require a physician's note before any further discussion

Answer

Transfer the file to a non-licensed staff member