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HECM TEST QUESTIONS AND ANSWERS
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HECM TEST QUESTIONS AND ANSWERS
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HECM TEST QUESTIONS ANDANSWERS
A6Counseling6Agency's6failure6to6follow6all6basic6requirements6required6by6HUD6could6re
sult6in6which6of6the6following:
A.6Termination6of6agency's6HUD6approval
B.6Suspension6of6agency's6HUD6approval
C.6Forfeiture6of6remaining6federal6grant6funds
D.6Fines6and6or6imprisonment
E.6a6,6b6,6and6c
F.6all6of6the6above6-6ans--E.
Termination6of6agency's6HUD6approval
Suspension6of6agency's6HUD6approval
6Forfeiture6of6remaining6federal6grant6funds
T/F6A6counseling6agency6must6offer6and6provide6face-to-
face6counseling6to6clients6that6prefer6this6format6whenever6possible.6-6ans--True
All6of6the6below6statements6are6requirements6that6each6agency6must6follow6EXCEPT:
A6.In6cases6where6an6agency6does6not6offer6unique6services6requested6by6the6client,6the
6agency6must6refer6the6client6to6another6participating6agency,6preferably6in6the6client's6ar
ea.
B.6An6agency6must6maintain6a6national6license6and6a6separate6license6for6each6state6in6
which6services6are6provided.
C.6An6agency6must6make6reasonable6efforts6to6provide6language6assistance6to6persons6
who6are6Limited6English6Proficiency6(LEP).
D.6An6agency6must6notify6HUD6and6provide6a6copy6of6the6updated6Work6Plan6prior6to6im
plementation6of6any6changes6to6the6agency's6Work6Plan6-6ans--B
T/F6Reverse6Mortgage6counselors6must6discuss6an6action6plan6during6each6counseling6
session.6-6ans--False
All6of6the6following6are6true6of6the6client's6required6"follow6up"6EXCEPT:
A.6The6follow-up6must6be6completed6by6a6Certified6HECM6Counselor
B.6verbal6attempts6must6be6made6to6contact6the6client6for6follow-up
C.6A6written6letter6to6the6client6must6request6the6client6contact6the6agency6within6306days6
of6the6date6of6the6letter.
,D.6Issuing6surveys6to6assess6housing6outcomes6does6not6fully6meet6the6requirement6for6
the6client6follow-
up6and6hiring6a6third6party6agency6to6conduct6the6follow6up6is6not6prohibited.6-6ans--D.
Which6of6the6follow6best6defines6a6Reverse6Mortgage:
A.6A6federally6insured6loan6that6allows6borrowers6626years6and6older6to6convert6the6equit
y6in6their6home6into6available6cash6and6which6will6be6paid6by6heirs6of6the6borrowers6upon
6their6passing.6(HECM)
B.6A6mortgage6available6to6those6with6100%6equity6and6a6home6in6good6condition6that6re
quires6no6repairs.
C.6A6mortgage6product6that6pays6a6homeowner6loan6proceeds6drawn6from6accumulated6
home6equity6and6that6requires6no6repayment6until6a6future6time.
D.6A6refinance6of6an6existing6mortgage6only6for6borrowers6626years6or6older.6-6ans--C
T/F6Agencies6are6permitted6to6conduct6marketing6and6outreach6including6providing6gene
ral6information6about6housing6opportunities6and6raising6awareness6about6critical6housing
6topics.6-6ans--True
An6agency's6staff6will6be6required6to6have6an6up-to-
date6knowledge6of6which6of6the6following:
A.6All6FHA6Single6Family6mortgage6programs
B.Lender6product6availability6and6rate6offerings
C.Mortgagee6letters
D.6HUD's6website6for6information6on6products6and6guidelines6(www.hud.gov)
E.6a6,6b6,6c
F.6a6,6c6,6d6-6ans--F
T/F6To6receive6a6FHA6HECM6loan,6a6borrower6must6first6receive6One-on-
One6Counseling6from6a6certified6HECM6Counselor.6-6ans--True
T/F6A6reverse6mortgage6counseling6agency6may6charge6a6fee6that6exceeds6the6actual6c
ost6to6provide6the6service6but6only6clients6and6related6parties6that6are6able6to6afford6the6f
ee.6-6ans--False
T/F6Clients6must6not6be6turned6away6because6of6an6inability6to6pay6counseling6fee6-6ans-
-False
All6are6true6of6entities6eligible6to6provide6Reverse6Mortgage6Counseling6EXCEPT:
A.An6agency6must6have6an6affiliating6lending6institution6in6order6to6stay6updated6with6upd
ating6lending6practices.6
B.6An6agency6must6be6have6an6Active6Status6on6the6HECM6Roster
C.6An6agency6must6receive6continuing6education6every6two6years
D.6An6agency6must6have6access6to6a6technology6that6allows6for6adequate6HUD6reporting
6-6ans--A.
, What6are6the6names6of6the626HUD6Booklets6that6each6client6must6receive6before6comple
ting6a6counseling6session?6-6ans--Preparing6for6Your6Counseling6Session
Use6Your6Home6to6Stay6at6Home6-6A6Guide6for6Homeowners6Who6Need6Help6Now
Each6counseling6session6must6include6discussion6on6all6of6the6following6EXCEPT:
A.6Basic6Requirements6to6the6Reverse6Mortgage
B.6Alternatives6to6the6Reverse6Mortgage
C.6Fees6and6costs6associated6with6the6Reverse6Mortgage
D.6Title6retention
E.6All6of6the6above6-6ans--E
If6the6national6lending6limit6is6$625,5006and6a6client's6estimated6appraised6value6is6$820,
000,6what6figure6are6the6proposal6calculations6based6on?
A.6625,500
B.6820,000
C.6204,500
D.6The6answer6would6depend6on6the6regional6lending6limit6-6ans--A
If6the6national6lending6limit6is6$625,5006and6a6client's6estimated6appraised6value6is6$820,
000,6what6is6this6calculation6called?6-6ans--
Maximum6Claim6Amount6(Lending6limit6is6the6same6thing)
T/F6Borrowers6should6be6encouraged6by6their6Loan6Officer6to6consult6a6financial6planner
6before6proceeding6with6a6Reverse6Mortgage.6-6ans--False
T/F6Only6one6of6the6borrowers6that6intends6to6be6on6the6deed6after6receiving6the6reverse6
mortgage6must6attend6counseling.6It6is6optional6for6the6other6borrowers6to6attend6counsel
ing.6-6ans--False
T/F6For6borrowers6who6lack6legal6competency,6a6Power6of6Attorney6may6participate6in6th
e6counseling6session6in6lieu6of6the6borrower6themselves.6-6ans--True
T/F6It6is6the6recommendation6of6FHA6and6the6agency6that6non-
borrowing6spouse6attend6counseling6but6it6is6not6a6requirement.6-6ans--True
T/F6The6agency6is6not6permitted6to6provide6a6copy6of6the6counseling6certificate6to6a6borro
wer's6lender.6-6ans--False.
What6role6does6FHA6(Federal6Housing6Administration)6play6in6Home6Equity6Conversion6
Mortgages?
A.6FHA6sells6the6HECM6loans6on6the6secondary6market
B.6FHA6provides6a6strict6rule6of6guidelines6that6lenders6must6adhere6to
C.6FHA6insures6HECM6loans
D.6FHA6first6instituted6but6no6longer6plays6any6part6in6HECM6loans6-6ans--C
How6is6a6reverse6mortgage6payment6plan6decided?
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