CRMP Regulatory Compliance & Ethical Practices 2

Question 1

Under HUD's HECM program, what is the maximum allowable origination fee for a home valued at $200,000?

Accepted Answer

$6,000

Answer

The origination fee is capped at the greater of $2,500 or 2% of the first $200,000 of the home's value plus 1% of the amount over $200,000, with a maximum of $6,000.

Question 2

Which federal law requires lenders to provide a Good Faith Estimate of settlement costs to HECM borrowers within three business days of application?

Accepted Answer

RESPA

Answer

RESPA (Real Estate Settlement Procedures Act) requires lenders to provide a Good Faith Estimate within three business days of receiving a loan application.

Question 3

An originator discovers a borrower has an outstanding federal tax lien on the property. What is the MOST appropriate course of action?

Accepted Answer

Advise the borrower the lien must be satisfied or subordinated at closing

Answer

Federal tax liens must be satisfied or properly subordinated before or at closing to ensure HECM eligibility and protect all parties.

Question 4

What does the NRMLA Code of Ethics prohibit regarding advertising reverse mortgages?

Accepted Answer

Making misleading claims about government endorsement or affiliation

Answer

The NRMLA Code of Ethics explicitly prohibits advertisements that imply a government endorsement or create misleading impressions about the nature of reverse mortgages.

Question 5

Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny a HECM application based on which factor?

Accepted Answer

The applicant's race or national origin

Answer

ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, or age (when the applicant is old enough to contract).

(CRMP) Certified Reverse Mortgage Professional Practice Test

(CRMP) Certified Reverse Mortgage Professional Practice Test

CRMP Regulatory Compliance & Ethical Practices 2