CRMP Reverse Mortgage Products & Loan Origination 2

Question 1

Under the HECM program, what is the maximum claim amount (MCA) used to calculate the Principal Limit?

Accepted Answer

The lesser of the appraised value or the FHA lending limit

Answer

The MCA is the lesser of the appraised value or the current FHA national lending limit, which caps the loan size.

Question 2

A borrower selects a HECM with a fixed interest rate. Which disbursement option is available to them?

Accepted Answer

Single lump-sum disbursement only

Answer

Fixed-rate HECMs are only available with a single lump-sum disbursement at closing.

Question 3

What happens to an unused HECM line of credit balance over time?

Accepted Answer

It grows at the same rate as the loan's interest rate plus MIP

Answer

The unused HECM line of credit grows at the current interest rate plus the 0.5% annual MIP rate.

Question 4

Which proprietary reverse mortgage feature most commonly distinguishes it from a HECM?

Accepted Answer

It can exceed the FHA lending limit for high-value homes

Answer

Proprietary (jumbo) reverse mortgages are designed for homes exceeding the FHA lending limit, allowing larger loan amounts.

Question 5

During HECM origination, when must the borrower complete HUD-approved counseling?

Accepted Answer

Before signing the loan application

Answer

HUD-approved counseling must occur before the borrower signs the loan application to ensure informed consent.

(CRMP) Certified Reverse Mortgage Professional Practice Test