CRMP Ethics and Counseling Requirements 5

Question 1

An 80-year-old borrower with early-stage dementia wants to proceed with a HECM. The most appropriate ethical step is:

Accepted Answer

Pause and recommend the borrower obtain a legal guardian or power of attorney review before proceeding

Answer

Cognitive impairment raises capacity concerns; a CRMP should recommend legal safeguards such as a guardian or attorney review before any loan is executed.

Question 2

What is the primary purpose of the HECM counseling certificate?

Accepted Answer

To document that the borrower received independent third-party counseling as required by HUD

Answer

The counseling certificate is proof that the borrower received independent HUD-mandated counseling before proceeding with the HECM application.

Question 3

A CRMP's marketing materials imply that a HECM is 'government money' that does not have to be repaid. This is:

Accepted Answer

Deceptive and a violation of NRMLA ethical standards and FTC advertising rules

Answer

Implying a HECM is a government grant or free money is deceptive advertising, violating both NRMLA ethics and FTC rules.

Question 4

Under HUD guidelines, which of the following individuals must complete HECM counseling?

Accepted Answer

All borrowers listed on the loan application, and non-borrowing spouses are strongly encouraged to attend

Answer

All borrowers on the application must attend counseling, and HUD strongly encourages non-borrowing spouses to participate as well.

Question 5

A CRMP is approached by an assisted living facility that wants to receive a fee for referring residents to the CRMP's reverse mortgage practice. This arrangement is:

Accepted Answer

Prohibited under RESPA if the fee is tied to actual loan referrals

Answer

Paying referral fees to non-licensed parties in exchange for mortgage referrals violates RESPA Section 8 regardless of ancillary services provided.

(CRMP) Certified Reverse Mortgage Professional Practice Test

(CRMP) Certified Reverse Mortgage Professional Practice Test

CRMP Ethics and Counseling Requirements 5