CRMP Ethics and Professional Conduct 4

Question 1

Under NRMLA standards, a CRMP who learns of potential elder financial abuse during the application process should:

Accepted Answer

Pause the transaction and report to Adult Protective Services or appropriate authorities

Answer

Suspected elder financial abuse requires immediate reporting to protective services, which may supersede the transaction.

Question 2

What does the NRMLA Code of Ethics require regarding advertising and marketing for reverse mortgages?

Accepted Answer

Marketing must be accurate, not misleading, and include required disclosures about loan costs and obligations

Answer

NRMLA requires that all marketing materials be truthful, balanced, and compliant with FHA and CFPB advertising rules.

Question 3

A non-borrowing spouse is not on the title of the property. What is the CRMP's ethical duty regarding their interests?

Accepted Answer

Explain deferral protections and potential displacement risks to both spouses

Answer

Non-borrowing spouses face significant risks and must be informed of their rights, deferral options, and potential consequences.

Question 4

A CRMP holds a CRMP designation from NRMLA. Which conduct would put that designation at risk?

Accepted Answer

Engaging in undisclosed dual agency by representing both borrower and lender interests

Answer

Undisclosed dual agency violates loyalty and impartiality requirements that underpin the CRMP designation.

Question 5

How should a CRMP handle a borrower who speaks limited English and relies on a family member for translation?

Accepted Answer

Use a qualified independent translator or translated documents to ensure accurate communication

Answer

Relying on interested family members for translation creates bias risk; independent translation protects borrower understanding.

(CRMP) Certified Reverse Mortgage Professional Practice Test