HOME EQUITY CONVERSION MORTAGE EXAM
Questions with Solved Solutions
T/F A counseling agency must offer and provide face-to-face counseling to clients
that prefer this format whenever possible. - 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 - ANSWER>>B
T/F Reverse Mortgage counselors must discuss an action plan during each
counseling 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
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. - 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. -
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 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 - ANSWER>>F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-One
Counseling 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
to afford 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 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 - 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 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 - 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 - 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? - ANSWER>>Maximum Claim Amount
(Lending limit is the same thing)
Questions with Solved Solutions
T/F A counseling agency must offer and provide face-to-face counseling to clients
that prefer this format whenever possible. - 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 - ANSWER>>B
T/F Reverse Mortgage counselors must discuss an action plan during each
counseling 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
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. - 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. -
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 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 - ANSWER>>F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-One
Counseling 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
to afford 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 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 - 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 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 - 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 - 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? - ANSWER>>Maximum Claim Amount
(Lending limit is the same thing)
