CRMP (Certified Reverse Mortgage Professional)
Exam | Questions And Answers [With Verified
Rationales] Rated A+ | 2026/27 Qs & Ans | Digital
Pdf Download
1. What is the primary purpose of a reverse mortgage?
A. Finance a new vehicle
B. Help homeowners convert home equity into cash
C. Pay college tuition only
D. Purchase commercial property
Answer: B
Rationale: Reverse mortgages allow eligible homeowners to access home
equity without monthly mortgage payments.
2. Which organization grants the CRMP designation?
A. National Reverse Mortgage Lenders Association
B. Federal Deposit Insurance Corporation
C. Internal Revenue Service
D. Consumer Financial Protection Bureau
Answer: A
,Rationale: The National Reverse Mortgage Lenders Association
administers the CRMP credential.
3. What does HECM stand for?
A. Home Equity Conversion Mortgage
B. Housing Equity Credit Management
C. Home Evaluation Conversion Method
D. Housing Equity Consumer Model
Answer: A
Rationale: HECM is the federally insured reverse mortgage program.
4. Which agency insures most HECM loans?
A. Federal Housing Administration
B. Department of Veterans Affairs
C. Federal Reserve
D. Department of Education
Answer: A
Rationale: FHA insures HECM loans to protect borrowers and lenders.
,5. What is the minimum age requirement for a HECM borrower?
A. 50
B. 55
C. 62
D. 65
Answer: C
Rationale: Borrowers must generally be at least 62 years old to qualify for
a HECM.
6. Which property type is typically eligible for a HECM?
A. Commercial warehouse
B. Primary residence
C. Vacation-only cabin
D. Industrial property
Answer: B
Rationale: HECMs are intended for owner-occupied primary residences.
7. What happens to the loan balance over time in a reverse mortgage?
A. It automatically disappears
B. It usually increases
C. It always decreases
D. It remains fixed permanently
, Answer: B
Rationale: Interest and fees accumulate over time, increasing the balance.
8. Which payment option provides fixed monthly payments for as long as the
borrower lives in the home?
A. Line of credit
B. Modified tenure
C. Tenure plan
D. Lump sum only
Answer: C
Rationale: Tenure plans provide equal monthly payments for the life of
occupancy.
9. What counseling requirement exists before obtaining a HECM?
A. Tax counseling only
B. HUD-approved counseling
C. Insurance counseling
D. Retirement planning certification
Answer: B
Rationale: HUD-approved counseling ensures borrowers understand loan
obligations and alternatives.
Exam | Questions And Answers [With Verified
Rationales] Rated A+ | 2026/27 Qs & Ans | Digital
Pdf Download
1. What is the primary purpose of a reverse mortgage?
A. Finance a new vehicle
B. Help homeowners convert home equity into cash
C. Pay college tuition only
D. Purchase commercial property
Answer: B
Rationale: Reverse mortgages allow eligible homeowners to access home
equity without monthly mortgage payments.
2. Which organization grants the CRMP designation?
A. National Reverse Mortgage Lenders Association
B. Federal Deposit Insurance Corporation
C. Internal Revenue Service
D. Consumer Financial Protection Bureau
Answer: A
,Rationale: The National Reverse Mortgage Lenders Association
administers the CRMP credential.
3. What does HECM stand for?
A. Home Equity Conversion Mortgage
B. Housing Equity Credit Management
C. Home Evaluation Conversion Method
D. Housing Equity Consumer Model
Answer: A
Rationale: HECM is the federally insured reverse mortgage program.
4. Which agency insures most HECM loans?
A. Federal Housing Administration
B. Department of Veterans Affairs
C. Federal Reserve
D. Department of Education
Answer: A
Rationale: FHA insures HECM loans to protect borrowers and lenders.
,5. What is the minimum age requirement for a HECM borrower?
A. 50
B. 55
C. 62
D. 65
Answer: C
Rationale: Borrowers must generally be at least 62 years old to qualify for
a HECM.
6. Which property type is typically eligible for a HECM?
A. Commercial warehouse
B. Primary residence
C. Vacation-only cabin
D. Industrial property
Answer: B
Rationale: HECMs are intended for owner-occupied primary residences.
7. What happens to the loan balance over time in a reverse mortgage?
A. It automatically disappears
B. It usually increases
C. It always decreases
D. It remains fixed permanently
, Answer: B
Rationale: Interest and fees accumulate over time, increasing the balance.
8. Which payment option provides fixed monthly payments for as long as the
borrower lives in the home?
A. Line of credit
B. Modified tenure
C. Tenure plan
D. Lump sum only
Answer: C
Rationale: Tenure plans provide equal monthly payments for the life of
occupancy.
9. What counseling requirement exists before obtaining a HECM?
A. Tax counseling only
B. HUD-approved counseling
C. Insurance counseling
D. Retirement planning certification
Answer: B
Rationale: HUD-approved counseling ensures borrowers understand loan
obligations and alternatives.
