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
Under NRMLA standards, a CRMP who learns of potential elder financial abuse during the application process should:
Answer: Pause the transaction and report to Adult Protective Services or appropriate authorities
Suspected elder financial abuse requires immediate reporting to protective services, which may supersede the transaction.
What does the NRMLA Code of Ethics require regarding advertising and marketing for reverse mortgages?
Answer: Marketing must be accurate, not misleading, and include required disclosures about loan costs and obligations
NRMLA requires that all marketing materials be truthful, balanced, and compliant with FHA and CFPB advertising rules.
A non-borrowing spouse is not on the title of the property. What is the CRMP's ethical duty regarding their interests?
Answer: Explain deferral protections and potential displacement risks to both spouses
Non-borrowing spouses face significant risks and must be informed of their rights, deferral options, and potential consequences.
A CRMP holds a CRMP designation from NRMLA. Which conduct would put that designation at risk?
Answer: Engaging in undisclosed dual agency by representing both borrower and lender interests
Undisclosed dual agency violates loyalty and impartiality requirements that underpin the CRMP designation.
How should a CRMP handle a borrower who speaks limited English and relies on a family member for translation?
Answer: Use a qualified independent translator or translated documents to ensure accurate communication
Relying on interested family members for translation creates bias risk; independent translation protects borrower understanding.
What ethical principle is violated when a CRMP omits mention of rising loan balances and potential equity erosion when presenting a reverse mortgage?
Answer: Principle of full disclosure and transparency
Failing to disclose material risks like compounding interest and equity erosion violates the duty of full and fair disclosure.
A CRMP who is also a licensed financial advisor recommends a reverse mortgage to fund an annuity product they sell. This situation most likely represents:
Answer: A serious conflict of interest requiring full disclosure and possibly recusal
Dual roles that generate layered commissions create compounded conflicts of interest requiring transparent disclosure and independent advice.