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
Which of the following is a required topic in every HUD-approved HECM counseling session?
Answer: Financial implications of the loan, including costs and impact on estate
HUD mandates that counselors cover the financial implications of the HECM, including fees, interest accrual, and the impact on the estate.
A borrower's adult child accompanies her to the counseling session and insists on answering questions on her behalf. What should the counselor do?
Answer: Redirect questions to the borrower directly and assess whether the borrower is participating freely
Counselors must ensure the borrower is an active, voluntary participant and not unduly influenced; redirecting questions helps assess this.
Under HUD Handbook 7610.1, the HECM counselor's fee may NOT exceed:
Answer: $125 per session, waivable for borrowers who cannot afford it
HUD caps the counseling fee at $125 and requires agencies to waive or reduce the fee for borrowers who cannot afford it.
The HECM Counseling Protocol requires that counselors discuss the potential impact of the loan on the borrower's eligibility for which type of benefits?
Answer: Means-tested benefits such as Medicaid and Supplemental Security Income (SSI)
HECM loan proceeds can affect eligibility for means-tested programs like Medicaid and SSI if funds are not spent in the month received.
After completing a HECM counseling session, what must the counselor send to the lender?
Answer: The signed Certificate of HECM Counseling (HUD Form 92902)
The counselor issues HUD Form 92902, the Certificate of HECM Counseling, which is required before the lender can proceed with the loan.
Which scenario would require a borrower to undergo a second HECM counseling session?
Answer: The counseling certificate has expired and the loan has not yet closed
If the 180-day counseling certificate expires before closing, the borrower must complete a new counseling session to obtain a fresh certificate.
A HECM borrower moves out of the property for more than 12 consecutive months due to a medical condition. What is the disclosure requirement at loan origination regarding this scenario?
Answer: The lender must disclose that extended absence beyond 12 months triggers a due-and-payable event
Borrowers must be told at counseling and closing that if the property is not their primary residence for more than 12 consecutive months, the loan becomes due and payable.