CRMP Ethics and Professional Conduct 3

Question 1

A borrower with early-stage dementia wants to proceed with a reverse mortgage without involving family. What is the most ethical course of action?

Accepted Answer

Assess capacity, consult with a counselor, and consider involving appropriate support parties

Answer

Cognitive impairment raises capacity concerns that require careful assessment and may necessitate involving counselors or legal guardians.

Question 2

How should a CRMP respond when a borrower asks them to recommend an elder law attorney?

Accepted Answer

Provide a list of qualified attorneys without steering toward one who pays referral fees

Answer

CRMPs may provide referrals but must avoid steering based on personal financial benefit to preserve impartiality.

Question 3

What is the primary purpose of the mandatory independent housing counseling required before a HECM loan closes?

Accepted Answer

To ensure borrowers receive unbiased information about the loan and alternatives from an independent source

Answer

Independent counseling protects borrowers by providing objective information free from any lender influence.

Question 4

A CRMP discovers that a borrower provided false information on their loan application. What is the appropriate response?

Accepted Answer

Halt the process and address the discrepancy with the borrower and lender per compliance requirements

Answer

CRMPs cannot knowingly participate in misrepresentation and must escalate discovered inaccuracies through proper channels.

Question 5

Which borrower population characteristic most heightens the ethical obligations of a CRMP?

Accepted Answer

Advanced age, potential cognitive decline, and fixed-income dependence

Answer

Elderly borrowers on fixed incomes with potential cognitive vulnerabilities require heightened duty of care and clear communication.

(CRMP) Certified Reverse Mortgage Professional Practice Test