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

  1. A CRMP counsels a borrower whose adult child is pressuring them to take out a reverse mortgage to fund the child's business. What is the ethical obligation?

    Answer: Explore whether the decision is truly voluntary and in the borrower's best interest

    CRMPs must ensure borrower decisions are free from undue influence and genuinely serve the borrower's interests.

  2. Which practice would constitute a conflict of interest for a CRMP?

    Answer: Receiving undisclosed referral fees from a title company recommended to borrowers

    Undisclosed referral fees create a financial conflict of interest that undermines the borrower's trust and violates NRMLA ethics standards.

  3. A CRMP realizes after closing that they made an error in the loan disclosure that disadvantaged the borrower. What should they do?

    Answer: Disclose the error and work to correct it through appropriate channels

    Ethical professionals proactively disclose and correct errors regardless of whether the borrower has noticed.

  4. Under NRMLA's Code of Ethics, how should a CRMP handle a situation where a competitor is making misleading claims about their own products?

    Answer: Report the misconduct to NRMLA and appropriate regulatory bodies

    NRMLA members are expected to report unethical conduct that harms consumers or the industry's reputation.

  5. What does 'informed consent' require of a CRMP before a borrower signs reverse mortgage documents?

    Answer: The borrower must understand the loan terms, risks, and alternatives in a language they comprehend

    Informed consent requires that borrowers genuinely understand what they are agreeing to, including risks and alternatives.

  6. A CRMP is approached by a real estate agent offering a commission split for every reverse mortgage borrower referred. This arrangement is:

    Answer: A potential RESPA violation and ethical breach if not properly structured

    RESPA prohibits kickbacks and unearned fee-splitting arrangements that are not for legitimate services rendered.

  7. Which statement best reflects the ethical duty of competence for a CRMP?

    Answer: Continuously update knowledge through education as products, regulations, and markets evolve

    Ongoing education is essential because reverse mortgage regulations, products, and best practices change over time.