Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
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Counseling Protocols & Client Communication 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 Protocols & Client Communication flashcards as text

  1. A HECM counselor discovers during a session that a client's home has significant deferred maintenance issues. The counselor should:

    Answer: Inform the client that property condition may affect their eligibility and discuss repair set-asides or alternatives

    Counselors should inform clients that property condition impacts HECM eligibility and explain how repair set-asides or required repairs factor into the loan process.

  2. How should a HECM counselor handle a situation where a client's adult children are pressuring them NOT to get a reverse mortgage due to inheritance concerns?

    Answer: Explain to the client how a HECM affects home equity and inheritance, but affirm that the final decision belongs to the client

    Counselors must remain neutral and ensure the client understands how the loan affects their estate, while reinforcing that the borrowing decision is the client's alone to make.

  3. Which disbursement option discussion is REQUIRED during HECM counseling?

    Answer: All available HECM payment plan options, including line of credit, tenure, term, and modified plans

    Counselors must explain all HECM payment plan options so borrowers can make an informed selection rather than defaulting to a lender's suggestion.

  4. A HECM counseling certificate is signed by which parties?

    Answer: The borrower and the HUD-approved counselor

    The HECM counseling certificate is signed by both the borrower and the HUD-approved counselor to confirm that counseling was completed.

  5. When a counselor explains the HECM line of credit growth feature, they should clarify that the unused portion grows at:

    Answer: A rate equal to the current interest rate plus the mortgage insurance premium rate, not based on investment returns

    The HECM line of credit grows at the same rate as the loan's accruing interest plus MIP, which is not an investment return but rather reflects increasing loan availability.

  6. A counselor working with a client who has a mortgage balance approaching their home's value should emphasize which HECM limitation?

    Answer: The principal limit may not be sufficient to pay off the existing mortgage, potentially making the client ineligible

    If the HECM principal limit is less than the existing mortgage balance, the borrower cannot qualify unless they bring additional funds to closing to pay down the existing lien.

  7. Under HECM rules, which of the following would constitute a loan maturity event requiring repayment?

    Answer: The borrower fails to maintain the property as their primary residence for more than 12 consecutive months

    A HECM becomes due and payable when the borrower no longer occupies the property as a primary residence for more than 12 consecutive months, among other maturity events.