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HECM TEST 5 QUESTIONS AND ANSWERS
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HECM TEST 5 QUESTIONS AND ANSWERS
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HECM TEST 5 QUESTIONS ANDANSWERS
The6objective6of6reverse6mortgage6counseling6is6to6educate6clients6on6-6and--
how6reverse6mortgages6work6and6their6implications
·6the6appropriateness6of6a6reverse6mortgage6for6their6personal6and6financial
situations,6and
·6possible6financial6alternatives6to6reverse6mortgages
The6following6topics6must6be6thoroughly6covered6in6every6reverse6mortgage
counseling6session6-6and--client6needs6and6circumstances
·6features6of6a6reverse6mortgage
·6client6responsibilities6under6a6reverse6mortgage
·6costs6to6obtain6a6reverse6mortgage
·6financial/tax6implications6of6a6reverse6mortgage
·6financial6or6social6service6alternatives6to6a6reverse6mortgage,6and
·6warnings6about6potential6reverse6mortgage/insurance6fraud6schemes6and
elder6abuse.
Once6the6counseling6session6is6complete,6the6counselor6should6complete6the6client6file,6
either
paper6or6electronic6is6acceptable.6As6stated6in6HUD's6Housing6Counseling6Handbook,6all
counseling6agencies6must6maintain6a6separate,6confidential6file6for6each6client.6The6coun
selor
must6ensure6that6the6file6contains6all6of6the6following6conten6-6and--
File6number:6A6file6number6for6the6unique6counseling6interaction;
□6Financial6Analysis/
Budget:6Evidence6of6analysis6of6the6client's6unique6financial6and6credit
circumstances6as6they6relate6to6the6reverse6mortgage;
□6Required6Data:6All6required6fields6listed6in6the6Interface6Control6Document6(ICD)6of6the
Client6Management6System6-6details6regarding6these6fields6can6be6found6at:
http://www.hud.gov/counselors/.
□6Activity6Log:6A6record6of6the6date,6time,6duration,6and6description6of6each6interaction6or
activity6performed6with,6on6behalf6of,6and6by,6the6client;
□6Follow6up:6A6record6of6all6follow-
up6communication6with6the6client6must6be6documented.
This6documentation6must6also6include6an6account6of6all6attempts6to6contact6clients6to6co
nduct
follow-up6sessions;
, □6Counseling6Participants:6Listing6of6people6other6than6the6borrower(s)6that6attended6the
reverse6mortgage6counseling6session6and6a6description6of6their6relationship6to6the6client(
s);
□6Counseling6Certificate:6Signed6and6dated6HECM6counseling6certificate;6if6the6certificat
e
was6not6issued,6the6reason6why6it6was6withheld;
6Agency6Disclosure6Statement:6A6copy6of6the6disclosure6statement6provided6to6each6clie
nt6in
a6face-to-
face6setting6or6a6notation6of6the6date6that6the6disclosure6statement6was6verbally6or
electronically6provided6during6telephone6counseling.6The6disclosure6statement6identifies6
the
agency6and6explicitly6describes6the6various6types6of6services6that6it6provides.6It6must6cle
arly
state6that6the6client6is6not6obligated6to6receive,6purchase,6or6use6any6other6services6offer
ed6by
the6organization6or6its6exclusive6partners,6in6order6to6receive6counseling6services.6For6cli
ents
receiving6telephone6counseling,6the6agency6must6verbally6or6electronically6provide6a
disclosure6that6meets6these6requirements.
□6Power6of6Attorney6or6other6documents6relating6to6legal6compe
When6the6counselor6performs6emergency6counseling6and6the6client6receives
the6information6packet6during6or6after6the6counseling6session,6counselors
should6-6and--
wait6246to6486hours6to6contact6the6client6so6that6the6client6has6time6to6review
the6materials6and6consider6his/her6options,6and
·6emphasize6that6the6client6may6call6the6counselor6at6any6time6with6additional
questions6or6concerns.
The6counselor6must6record6on6the6certificate6-6and--The6name6of6the6counselor;
6The6name6of6the6counseling6agency;
6The6employer6HCS6(Housing6Counseling6System)6ID6of6the6counseling6entity;
6The6date6and6signature6of6both6the6counselor6and6all6prospective6borrowers;
6The6date6that6that6the6client6completed6counseling;
6The6expiration6date6for6the6certificate6provided6by6the6counselor;
6The6type6of6counseling6performed6(face-to-face6or6telephone);
6The6duration6of6the6counseling6session(s);6and
6If6applicable,6the6signature6of6the6client's6legal6representative
talc6general6overview6-6and--
Although6the6counselor6can6provide6a6general6overview6of6reverse6mortgage6costs6to6a6c
lient,6only6a6lender6can6provide6the6client6with6the6actual6costs6of6a6specific6product.6Only
6the6client6can6weigh6the6costs6and6benefits6of6a6reverse6mortgage6for6himself6or6herself6
to6determine6whether6or6not6the6loan6would6meets6his6or6her6needs6and6circumstances
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