CRMP Ethics and Counseling Requirements 3

Question 1

What is the maximum counseling fee a HUD-approved agency may charge a HECM applicant who cannot afford to pay?

Accepted Answer

$0 — the fee must be waived

Answer

HUD requires that counseling agencies waive the fee for borrowers who cannot afford it; inability to pay cannot be a barrier to counseling.

Question 2

Under NRMLA's Code of Ethics, a CRMP is prohibited from doing which of the following?

Accepted Answer

Accepting referral fees from non-licensed third parties outside RESPA safe harbors

Answer

NRMLA's Code of Ethics prohibits kickbacks and referral arrangements that violate RESPA and ethical standards.

Question 3

A CRMP recommends a HECM to a borrower solely because it generates the highest commission. This violates which ethical principle?

Accepted Answer

Suitability and client-first duty

Answer

Suitability requires that product recommendations serve the borrower's needs, not the originator's financial interest.

Question 4

Which of the following is a permissible reason for a borrower to conduct HECM counseling by telephone rather than in person?

Accepted Answer

The borrower lives in a rural area without reasonable access to a local counselor

Answer

Telephone counseling is permitted when in-person counseling is not reasonably available, such as in rural or underserved areas.

Question 5

How does NRMLA's Code of Ethics address confidentiality of borrower information?

Accepted Answer

Member firms must protect non-public personal information and use it only for the intended transaction

Answer

NRMLA's ethical standards require members to safeguard borrower data in compliance with Gramm-Leach-Bliley and related privacy laws.

(CRMP) Certified Reverse Mortgage Professional Practice Test