Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
← All CRMP Flashcard Decks

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. An 80-year-old borrower with early-stage dementia wants to proceed with a HECM. The most appropriate ethical step is:

    Answer: Pause and recommend the borrower obtain a legal guardian or power of attorney review before proceeding

    Cognitive impairment raises capacity concerns; a CRMP should recommend legal safeguards such as a guardian or attorney review before any loan is executed.

  2. What is the primary purpose of the HECM counseling certificate?

    Answer: To document that the borrower received independent third-party counseling as required by HUD

    The counseling certificate is proof that the borrower received independent HUD-mandated counseling before proceeding with the HECM application.

  3. A CRMP's marketing materials imply that a HECM is 'government money' that does not have to be repaid. This is:

    Answer: Deceptive and a violation of NRMLA ethical standards and FTC advertising rules

    Implying a HECM is a government grant or free money is deceptive advertising, violating both NRMLA ethics and FTC rules.

  4. Under HUD guidelines, which of the following individuals must complete HECM counseling?

    Answer: All borrowers listed on the loan application, and non-borrowing spouses are strongly encouraged to attend

    All borrowers on the application must attend counseling, and HUD strongly encourages non-borrowing spouses to participate as well.

  5. A CRMP is approached by an assisted living facility that wants to receive a fee for referring residents to the CRMP's reverse mortgage practice. This arrangement is:

    Answer: Prohibited under RESPA if the fee is tied to actual loan referrals

    Paying referral fees to non-licensed parties in exchange for mortgage referrals violates RESPA Section 8 regardless of ancillary services provided.

  6. Which ethical principle requires a CRMP to disclose a personal financial interest in a transaction to the borrower?

    Answer: Conflict of interest disclosure

    Conflict of interest disclosure requires that any personal financial stake the CRMP has in the transaction be revealed to the borrower.

  7. A borrower withdraws from the HECM process after counseling but calls back six months later wishing to restart. Which statement about the counseling certificate is correct?

    Answer: HUD counseling certificates are typically valid for 180 days and a new one may be required if expired

    HUD counseling certificates are generally valid for 180 days; if that period has expired, the borrower must complete counseling again.