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

HUD requires that borrowers receive counseling at least 7 business days before signing the HECM loan application.

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

Signs of financial elder abuse must be reported to appropriate authorities, and the counselor should be alerted to the potential undue influence.

Question 3

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

Accepted Answer

HUD

Answer

HUD approves and oversees all agencies authorized to provide mandatory HECM independent counseling.

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

Ethical standards require CRMPs to disclose all material facts relevant to the borrower's informed decision-making.

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

Counselors must issue a counseling completion certificate and discuss alternatives such as other home equity options or downsizing.

(CRMP) Certified Reverse Mortgage Professional Practice Test

(CRMP) Certified Reverse Mortgage Professional Practice Test

CRMP Ethics and Counseling Requirements 2