CRMP Cheat Sheet 2026

The 30 highest-yield CRMP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under HUD guidelines, HECM counselors must maintain records of each counseling session for a minimum of how many years? → 3 years
2. A borrower is in a repayment plan with the IRS for a federal tax debt of $12,000. How should the lender treat this during financial assessment? → Count the repayment plan payment as a monthly liability if in good standing
3. Which of the following credit events typically triggers a 'compensating factors' review rather than automatic disqualification during HECM financial assessment? → A single 30-day late mortgage payment 15 months ago
4. What is the maximum origination fee a lender can charge on a HECM with a home value of $400,000? → $6,000
5. Which federal agency oversees reverse mortgage advertising compliance? → CFPB
6. What happens to an unused HECM line of credit balance over time? → It grows at the same rate as the loan's interest rate plus MIP
7. Which factor is NOT typically reviewed in a reverse mortgage financial assessment? → Debt obligations
8. When a HECM counselor identifies that a client may have diminished cognitive capacity, the BEST first step is to: → Suggest the client bring a trusted advisor or family member to a follow-up session
9. When must a CRMP act as a mandatory reporter? → If abuse is suspected
10. Which document summarizes all HECM loan costs and must be provided to the borrower at least 3 business days before closing? → Closing Disclosure
11. A borrower is 68 years old and owns a home with a $40,000 remaining mortgage balance valued at $280,000. What must occur before HECM proceeds can be accessed? → The existing mortgage must be paid off at or before closing
12. Who sets the guidelines for financial assessment in reverse mortgages? → Department of Housing and Urban Development (HUD)
13. A borrower has a delinquent property tax obligation that was paid off three months ago. How should the lender treat this during financial assessment? → Document the delinquency, evaluate the reason, and consider compensating factors
14. What document must a HECM servicer send annually to notify the borrower that the loan is still active? → Annual Occupancy Certification
15. Under NRMLA's ethical guidelines, which advertising practice for reverse mortgages is specifically prohibited? → Using celebrity endorsements without disclosing they are paid spokespeople
16. Under the HECM financial assessment, which factor is NOT evaluated by the lender? → The borrower's credit score threshold of 700 or higher
17. What does 'fiduciary-like' responsibility mean in the context of a CRMP's relationship with borrowers? → The CRMP prioritizes borrower interests over personal gain even when not legally mandated
18. An applicant's credit report shows multiple recent late payments on property taxes. Under Financial Assessment rules, a lender should consider: → Evaluating the circumstances and potentially requiring a fully-funded LESA
19. A borrower disputes a collection account on their credit report. During HECM financial assessment, the lender should: → Treat the disputed account according to HUD guidelines, which may still require evaluation
20. Which of the following topics is NOT required to be covered during mandatory HECM counseling? → Specific investment advice for loan proceeds
21. What must occur before a condominium unit can serve as collateral for a HECM loan? → The condo project must be on the FHA-approved condominium list
22. During the Financial Assessment for a HECM loan, what is the consequence if a borrower is found to have delinquent federal debt? → The borrower is automatically disqualified from obtaining a HECM.
23. Which of the following topics is REQUIRED to be covered in every HUD-approved HECM counseling session? → Options other than a reverse mortgage, such as selling or refinancing
24. Which environmental hazard found during a HECM appraisal typically requires remediation before loan approval? → Defective lead-based paint with chipping or peeling
25. When a HECM borrower has a prior HECM that was assigned to HUD due to a 98% loan balance, how does this affect the financial assessment for a new HECM? → It is treated as a derogatory event and must be evaluated in the credit analysis
26. A HECM borrower's home sells for less than the outstanding loan balance. What protects the borrower's heirs from owing the deficiency? → FHA's mutual mortgage insurance fund, making HECMs non-recourse loans
27. A borrower selects a 'modified tenure' payment plan. What two components does this option combine? → A line of credit set-aside with monthly tenure payments
28. What must a borrower do to maintain HECM eligibility on an ongoing basis after closing? → Continue paying property taxes, homeowners insurance, and maintain the property
29. Which of the following best describes 'residual income' in the context of HECM financial assessment? → Income remaining after subtracting all monthly debt obligations and living expenses
30. Which federal law primarily governs reverse mortgage disclosures? → Truth in Lending Act