Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
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Ethics and Counseling Requirements 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 Ethics and Counseling Requirements flashcards as text

  1. A CRMP suspects a borrower has been the victim of a home repair scam where contractor receives HECM proceeds directly. What is the appropriate response?

    Answer: Report the suspected fraud to HUD and recommend the borrower consult an attorney

    Direct payment to contractors from HECM proceeds in scam scenarios constitutes financial exploitation and must be reported to HUD.

  2. Under what circumstance may a HECM lender pay for a borrower's HUD-required counseling?

    Answer: Only after the borrower has received the counseling completion certificate

    Lenders may pay for counseling only after the borrower receives the completion certificate, to prevent any appearance of influencing the counseling outcome.

  3. A CRMP's primary ethical obligation when advising a senior borrower is to whom?

    Answer: The borrower themselves

    The CRMP's paramount ethical duty is to the borrower, ensuring recommendations are in the borrower's best interest.

  4. Which of the following best describes 'suitability' in the CRMP context?

    Answer: Ensuring the reverse mortgage product genuinely meets the borrower's financial and personal needs

    Suitability means the product fits the borrower's actual goals and circumstances, not merely that they qualify.

  5. Which of the following topics is NOT required to be covered during mandatory HECM counseling?

    Answer: Specific investment advice for loan proceeds

    Counselors must be neutral and cannot provide personalized investment advice; they cover loan mechanics, alternatives, and obligations.

  6. A CRMP is offered a gift worth $200 from a title company seeking reverse mortgage referrals. Under RESPA and NRMLA ethics, this is:

    Answer: Prohibited as it constitutes an illegal kickback

    RESPA Section 8 prohibits kickbacks and unearned fees in settlement services; gifts in exchange for referrals are illegal regardless of timing.

  7. When a borrower asks a CRMP to rush the process so counseling happens on the same day as the application signing, the CRMP must explain that:

    Answer: HUD requires a minimum 7-business-day waiting period between counseling and application signing

    HUD's mandatory waiting period of 7 business days between counseling and application signing cannot be waived by the borrower or lender.