CRMP CRMP Property Requirements and Appraisal Standards Questions and Answers 2

Question 1

What is the maximum number of units allowed in a property that is eligible for a HECM?

Accepted Answer

Up to 4 units, with borrower occupying one unit

Answer

HECM allows up to 4-unit properties as long as the borrower occupies one of the units as their principal residence.

Question 2

Can a HECM be placed on a property located on a Native American tribal trust land?

Accepted Answer

Yes, with a Section 184A loan guarantee under specific conditions

Answer

HECM Section 184A allows reverse mortgages on Native American tribal trust land under a special HUD program with specific conditions.

Question 3

Which of the following is NOT an FHA Minimum Property Standard that must be met for HECM eligibility?

Accepted Answer

The property must have a garage

Answer

A garage is not an FHA Minimum Property Standard requirement; properties must be safe, structurally sound, and have functioning utilities.

Question 4

What must occur before a condominium unit can serve as collateral for a HECM loan?

Accepted Answer

The condo project must be on the FHA-approved condominium list

Answer

The condominium project must be on HUD's FHA-approved condominium list, or undergo spot approval, before a HECM can be issued on any unit.

Question 5

Under HUD guidelines, who is responsible for selecting the HECM appraiser?

Accepted Answer

The lender orders the appraisal through an approved FHA roster appraiser

Answer

The lender must order the appraisal from an appraiser on the FHA Appraiser Roster, in compliance with appraiser independence requirements.

(CRMP) Certified Reverse Mortgage Professional Practice Test