CRMP Reverse Mortgage Products & Loan Origination 3

Question 1

Which factor does NOT directly affect the Principal Limit Factor (PLF) assigned to a HECM borrower?

Accepted Answer

Property location (state)

Answer

PLFs are determined by age, expected interest rate, and FHA limits — not by which state the property is in.

Question 2

A non-borrowing spouse under age 62 at the time of HECM origination is best protected by which provision?

Accepted Answer

Deferral of due-and-payable status under HUD guidelines

Answer

HUD's deferral policy allows an eligible non-borrowing spouse to remain in the home after the borrower's death without triggering immediate loan repayment.

Question 3

What type of property is eligible for a HECM loan?

Accepted Answer

FHA-approved condominium unit

Answer

FHA-approved condominiums are eligible for HECMs, provided the condo project meets HUD approval requirements.

Question 4

Under the HECM tenure payment option, how long do monthly payments continue?

Accepted Answer

For the life of the loan as long as the home is the primary residence

Answer

Tenure payments continue indefinitely as long as the borrower occupies the home as a primary residence, regardless of loan balance.

Question 5

What is the initial draw limit rule for a fixed-rate HECM?

Accepted Answer

Borrowers must draw the full Principal Limit at closing

Answer

Fixed-rate HECM borrowers must take the full lump sum at closing, which equals the entire Principal Limit amount.

(CRMP) Certified Reverse Mortgage Professional Practice Test

(CRMP) Certified Reverse Mortgage Professional Practice Test

CRMP Reverse Mortgage Products & Loan Origination 3