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. The Good Faith Estimate (GFE) for a HECM loan must be provided to the borrower within how many business days of receiving a completed loan application?

    Answer: 3 business days

    Under RESPA and TILA, lenders must deliver the GFE (now Loan Estimate under TRID) within 3 business days of a completed application.

  2. A HECM counselor must document that the borrower was informed about which of the following alternatives to a reverse mortgage?

    Answer: Home equity loans, sale-leaseback arrangements, and government benefit programs

    HUD requires counselors to discuss alternatives such as home equity loans, sale-leaseback, and public benefit programs to ensure the borrower considers all options.

  3. Which document must a lender provide to a HECM borrower at least 3 business days before closing that summarizes the loan's key terms and costs?

    Answer: The Closing Disclosure

    Under TRID, lenders must provide the Closing Disclosure at least 3 business days before consummation so borrowers can review final terms.

  4. A borrower who is 64 years old applies for a HECM with a 72-year-old co-borrower. How does the younger borrower's age affect the principal limit factor?

    Answer: The younger borrower's age is used, resulting in a lower principal limit

    HUD uses the age of the youngest borrower (or eligible non-borrowing spouse) to set the PLF, which lowers the available proceeds to account for a longer loan term.

  5. Which disclosure specifically informs HECM borrowers of their right to rescind (cancel) the loan within three business days of closing?

    Answer: The Notice of Right to Cancel under TILA (Regulation Z)

    TILA's right of rescission under Regulation Z gives borrowers three business days after closing to cancel the transaction without penalty.

  6. Under FHA guidelines, a HECM borrower must complete counseling BEFORE which of the following steps?

    Answer: Lender application submission

    HUD requires the borrower to complete counseling before submitting a formal loan application so counseling is independent and uninfluenced by the process.

  7. A counselor is completing sessions for a borrower with limited English proficiency. HUD guidelines state that the counselor should:

    Answer: Provide or arrange for meaningful access to counseling in the borrower's primary language

    HUD requires counseling agencies to provide meaningful access, including language access, for borrowers with limited English proficiency.