HOSMERIT
HECM TEST EXAM 100+ QUESTIONS
AND EXPERT VERIFIED ANSWERS
2024/2025
A Counseling Agency's failure to follow all basic requirements required by HUDcould
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 - 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 clientsthat
prefer this format whenever possible. - ANSWER- True
All of the below statements are requirements that each agency must followEXCEPT:
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 statein
which services are provided.
,C. An agency must make reasonable efforts to provide language assistance topersons
who are Limited English Proficiency (LEP).
D. An agency must notify HUD and provide a copy of the updated Work Plan priorto
implementation of any changes to the agency's Work Plan - ANSWER- B
T/F Reverse Mortgage counselors must discuss an action plan during eachcounseling
session. - 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 30days
of the date of the letter.
D. Issuing surveys to assess housing outcomes does not fully meet the requirementfor
the client follow-up and hiring a third party agency to conduct the follow up is not
prohibited. - 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 conditionthat
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. -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. - 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 offeringsC.Mortgagee letters
C. HUD's website for information on products and guidelines (www.hud.gov)
C. a , b , c
D. a , c , d - ANSWER- F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-OneCounseling
from a certified HECM Counselor. - 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 toafford the
fee. - ANSWER- False
T/F Clients must not be turned away because of an inability to pay counseling fee -
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 updatedwith
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 HUDreporting
- ANSWER- A.
What are the names of the 2 HUD Booklets that each client must receive before
completing a counseling session? - ANSWER- Preparing for Your Counseling Session
Use Your Home to Stay at Home - A Guide for Homeowners Who Need HelpNow
Each counseling session must include discussion on all of the following EXCEPT:
HECM TEST EXAM 100+ QUESTIONS
AND EXPERT VERIFIED ANSWERS
2024/2025
A Counseling Agency's failure to follow all basic requirements required by HUDcould
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 - 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 clientsthat
prefer this format whenever possible. - ANSWER- True
All of the below statements are requirements that each agency must followEXCEPT:
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 statein
which services are provided.
,C. An agency must make reasonable efforts to provide language assistance topersons
who are Limited English Proficiency (LEP).
D. An agency must notify HUD and provide a copy of the updated Work Plan priorto
implementation of any changes to the agency's Work Plan - ANSWER- B
T/F Reverse Mortgage counselors must discuss an action plan during eachcounseling
session. - 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 30days
of the date of the letter.
D. Issuing surveys to assess housing outcomes does not fully meet the requirementfor
the client follow-up and hiring a third party agency to conduct the follow up is not
prohibited. - 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 conditionthat
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. -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. - 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 offeringsC.Mortgagee letters
C. HUD's website for information on products and guidelines (www.hud.gov)
C. a , b , c
D. a , c , d - ANSWER- F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-OneCounseling
from a certified HECM Counselor. - 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 toafford the
fee. - ANSWER- False
T/F Clients must not be turned away because of an inability to pay counseling fee -
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 updatedwith
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 HUDreporting
- ANSWER- A.
What are the names of the 2 HUD Booklets that each client must receive before
completing a counseling session? - ANSWER- Preparing for Your Counseling Session
Use Your Home to Stay at Home - A Guide for Homeowners Who Need HelpNow
Each counseling session must include discussion on all of the following EXCEPT:
