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HECM Test | 142 Questions W/Complete Solutions
HECM Test | 142 Questions W/Complete Solutions
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HECM Test | 142 Questions W/Complete SolutionsA Counseling Agency's failure to follow all basic requirements required by
HUD could result in which of the following:
A. Termination of agency's HUD approval
B. Suspension of agency's HUD approval
C. Forfeiture of remaining federal grant funds
D. Fines and or imprisonment
E. a , b , and c
F. all of the above Correct Answer - E.
Termination of agency's HUD approval
Suspension of agency's HUD approval
Forfeiture of remaining federal grant funds
T/F A counseling agency must offer and provide face-to-face counseling to
clients that prefer this format whenever possible. Correct Answer - True
All of the below statements are requirements that each agency must follow
EXCEPT:
A .In cases where an agency does not offer unique services requested by the
client, the agency must refer the client to another participating agency,
preferably in the client's area.
B. An agency must maintain a national license and a separate license for each
state in which services are provided.
C. An agency must make reasonable efforts to provide language assistance to
persons who are Limited English Proficiency (LEP).
D. An agency must notify HUD and provide a copy of the updated Work Plan
prior to implementation of any changes to the agency's Work Plan Correct
Answer - B
T/F Reverse Mortgage counselors must discuss an action plan during each
counseling session. Correct Answer - False
All of the following are true of the client's required "follow up" EXCEPT:
A. The follow-up must be completed by a Certified HECM Counselor
B. verbal attempts must be made to contact the client for follow-up
,C. A written letter to the client must request the client contact the agency
within 30 days of the date of the letter.
D. Issuing surveys to assess housing outcomes does not fully meet the
requirement for the client follow-up and hiring a third party agency to
conduct the follow up is not prohibited. Correct Answer - D.
Which of the follow best defines a Reverse Mortgage:
A. A federally insured loan that allows borrowers 62 years and older to
convert the equity in their home into available cash and which will be paid by
heirs of the borrowers upon their passing. (HECM)
B. A mortgage available to those with 100% equity and a home in good
condition that requires no repairs.
C. A mortgage product that pays a homeowner loan proceeds drawn from
accumulated home equity and that requires no repayment until a future time.
D. A refinance of an existing mortgage only for borrowers 62 years or older.
Correct Answer - C
T/F Agencies are permitted to conduct marketing and outreach including
providing general information about housing opportunities and raising
awareness about critical housing topics. Correct Answer - True
An agency's staff will be required to have an up-to-date knowledge of which of
the following:
A. All FHA Single Family mortgage programs
B.Lender product availability and rate offerings
C.Mortgagee letters
D. HUD's website for information on products and guidelines (www.hud.gov)
E. a , b , c
F. a , c , d Correct Answer - F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-One
Counseling from a certified HECM Counselor. Correct Answer - True
T/F A reverse mortgage counseling agency may charge a fee that exceeds the
actual cost to provide the service but only clients and related parties that are
able to afford the fee. Correct Answer - False
T/F Clients must not be turned away because of an inability to pay counseling
fee Correct Answer - False
, All are true of entities eligible to provide Reverse Mortgage Counseling
EXCEPT:
A.An agency must have an affiliating lending institution in order to stay
updated with updating lending practices.
B. An agency must be have an Active Status on the HECM Roster
C. An agency must receive continuing education every two years
D. An agency must have access to a technology that allows for adequate HUD
reporting Correct Answer - A.
What are the names of the 2 HUD Booklets that each client must receive
before completing a counseling session? Correct Answer - Preparing for
Your Counseling Session
Use Your Home to Stay at Home - A Guide for Homeowners Who Need Help
Now
Each counseling session must include discussion on all of the following
EXCEPT:
A. Basic Requirements to the Reverse Mortgage
B. Alternatives to the Reverse Mortgage
C. Fees and costs associated with the Reverse Mortgage
D. Title retention
E. All of the above Correct Answer - E
If the national lending limit is $625,500 and a client's estimated appraised
value is $820,000, what figure are the proposal calculations based on?
A. 625,500
B. 820,000
C. 204,500
D. The answer would depend on the regional lending limit Correct Answer
- A
If the national lending limit is $625,500 and a client's estimated appraised
value is $820,000, what is this calculation called? Correct Answer -
Maximum Claim Amount (Lending limit is the same thing)
T/F Borrowers should be encouraged by their Loan Officer to consult a
financial planner before proceeding with a Reverse Mortgage. Correct
Answer - False
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