Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
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Counseling and Disclosures Flashcards

7 cards from real CRMP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Counseling and Disclosures flashcards as text

  1. Which federal agency oversees the approval and oversight of HUD-approved reverse mortgage counseling agencies?

    Answer: The Office of Housing Counseling (OHC) within HUD

    HUD's Office of Housing Counseling (OHC) is responsible for approving and overseeing agencies that provide HECM counseling.

  2. A borrower wishes to complete HECM counseling by telephone rather than in person. Under HUD guidelines, this is:

    Answer: Permitted as an option available to all eligible borrowers

    HUD allows telephone counseling as an option for all borrowers, not just those who live far from counseling agencies.

  3. During HECM counseling, the counselor is required to provide the borrower with a disclosure about the total annual loan cost (TALC). The TALC disclosure helps the borrower understand:

    Answer: The projected annual average cost of the loan expressed as a rate

    The TALC expresses the overall projected cost of a reverse mortgage as an annualized rate, similar to an APR.

  4. Which of the following parties is explicitly prohibited from selecting or referring the borrower to a specific HECM counseling agency?

    Answer: The lender or mortgage broker originating the loan

    HUD rules bar lenders and brokers from steering borrowers to a particular counselor to preserve counseling independence.

  5. A counselor discovers during a HECM session that the borrower has an existing tax lien on the property. What is the most appropriate counseling action?

    Answer: Discuss how the lien may affect loan proceeds and eligibility, and advise the borrower to address it

    Counselors should educate borrowers on how outstanding liens can reduce net proceeds and affect closing, and encourage the borrower to resolve the issue.

  6. Under the HECM program, the Certificate of HECM Counseling is valid for how long after the counseling session date?

    Answer: 180 days

    The counseling certificate is generally valid for 180 days from the date it is issued.

  7. If a borrower's non-borrowing spouse is present during HECM counseling, what is the counselor's responsibility regarding that spouse?

    Answer: Include the non-borrowing spouse in counseling and explain their rights and risks

    HUD encourages including non-borrowing spouses in counseling so they fully understand how the loan affects them, including deferral period rights.