Practice Test Geeks(CRMP) Certified Reverse Mortgage Professional Practice Test
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Regulatory Compliance & Ethical Practices 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 Regulatory Compliance & Ethical Practices flashcards as text

  1. Under HUD's HECM program, what is the maximum allowable origination fee for a home valued at $200,000?

    Answer: $6,000

    The origination fee is capped at the greater of $2,500 or 2% of the first $200,000 of the home's value plus 1% of the amount over $200,000, with a maximum of $6,000.

  2. Which federal law requires lenders to provide a Good Faith Estimate of settlement costs to HECM borrowers within three business days of application?

    Answer: RESPA

    RESPA (Real Estate Settlement Procedures Act) requires lenders to provide a Good Faith Estimate within three business days of receiving a loan application.

  3. An originator discovers a borrower has an outstanding federal tax lien on the property. What is the MOST appropriate course of action?

    Answer: Advise the borrower the lien must be satisfied or subordinated at closing

    Federal tax liens must be satisfied or properly subordinated before or at closing to ensure HECM eligibility and protect all parties.

  4. What does the NRMLA Code of Ethics prohibit regarding advertising reverse mortgages?

    Answer: Making misleading claims about government endorsement or affiliation

    The NRMLA Code of Ethics explicitly prohibits advertisements that imply a government endorsement or create misleading impressions about the nature of reverse mortgages.

  5. Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny a HECM application based on which factor?

    Answer: The applicant's race or national origin

    ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, or age (when the applicant is old enough to contract).

  6. A HECM servicer must notify a borrower of a potential default condition within how many days of determining a due-and-payable event?

    Answer: 30 days

    HUD requires servicers to notify borrowers of a due-and-payable condition within 30 days of the triggering event.

  7. Which entity is primarily responsible for enforcing compliance with the Truth in Lending Act (TILA) for HECM lenders?

    Answer: Consumer Financial Protection Bureau (CFPB)

    The CFPB has primary authority to supervise and enforce TILA compliance for mortgage lenders, including those offering HECMs.