Hecm test 5 (2025) Actual Exam
Questions and Answers A+ Graded
The .objective .of .reverse .mortgage .counseling .is .to .educate .clients .on .-
.CORRECT .ANSWER .-how .reverse .mortgages .work .and .their .implications
· .the .appropriateness .of .a .reverse .mortgage .for .their .personal .and .financial
situations, .and
· .possible .financial .alternatives .to .reverse .mortgages
The .following .topics .must .be .thoroughly .covered .in .every .reverse .mortgage
counseling .session .- .CORRECT .ANSWER .-client .needs .and .circumstances
· .features .of .a .reverse .mortgage
· .client .responsibilities .under .a .reverse .mortgage
· .costs .to .obtain .a .reverse .mortgage
· .financial/tax .implications .of .a .reverse .mortgage
· .financial .or .social .service .alternatives .to .a .reverse .mortgage, .and
· .warnings .about .potential .reverse .mortgage/insurance .fraud .schemes .and
elder .abuse.
Once .the .counseling .session .is .complete, .the .counselor .should .complete .the
.client .file, .either
paper .or .electronic .is .acceptable. .As .stated .in .HUD's .Housing .Counseling
.Handbook, .all
counseling .agencies .must .maintain .a .separate, .confidential .file .for .each .client.
.The .counselor
must .ensure .that .the .file .contains .all .of .the .following .conten .- .CORRECT
.ANSWER .-File .number: .A .file .number .for .the .unique .counseling .interaction;
□ .Financial .Analysis/Budget: .Evidence .of .analysis .of .the .client's .unique
.financial .and .credit
circumstances .as .they .relate .to .the .reverse .mortgage;
□ .Required .Data: .All .required .fields .listed .in .the .Interface .Control .Document
.(ICD) .of .the
Client .Management .System .- .details .regarding .these .fields .can .be .found .at:
http://www.hud.gov/counselors/.
□ .Activity .Log: .A .record .of .the .date, .time, .duration, .and .description .of .each
.interaction .or
activity .performed .with, .on .behalf .of, .and .by, .the .client;
□ .Follow .up: .A .record .of .all .follow-up .communication .with .the .client .must .be
.documented.
This .documentation .must .also .include .an .account .of .all .attempts .to .contact
.clients .to .conduct
follow-up .sessions;
, □ .Counseling .Participants: .Listing .of .people .other .than .the .borrower(s) .that
.attended .the
reverse .mortgage .counseling .session .and .a .description .of .their .relationship .to
.the .client(s);
□ .Counseling .Certificate: .Signed .and .dated .HECM .counseling .certificate; .if .the
.certificate
was .not .issued, .the .reason .why .it .was .withheld;
.Agency .Disclosure .Statement: .A .copy .of .the .disclosure .statement .provided .to
.each .client .in
a .face-to-face .setting .or .a .notation .of .the .date .that .the .disclosure .statement
.was .verbally .or
electronically .provided .during .telephone .counseling. .The .disclosure .statement
.identifies .the
agency .and .explicitly .describes .the .various .types .of .services .that .it .provides. .It
.must .clearly
state .that .the .client .is .not .obligated .to .receive, .purchase, .or .use .any .other
.services .offered .by
the .organization .or .its .exclusive .partners, .in .order .to .receive .counseling
.services. .For .clients
receiving .telephone .counseling, .the .agency .must .verbally .or .electronically
.provide .a
disclosure .that .meets .these .requirements.
□ .Power .of .Attorney .or .other .documents .relating .to .legal .compe
When .the .counselor .performs .emergency .counseling .and .the .client .receives
the .information .packet .during .or .after .the .counseling .session, .counselors
should .- .CORRECT .ANSWER .-wait .24 .to .48 .hours .to .contact .the .client .so .that
.the .client .has .time .to .review
the .materials .and .consider .his/her .options, .and
· .emphasize .that .the .client .may .call .the .counselor .at .any .time .with .additional
questions .or .concerns.
The .counselor .must .record .on .the .certificate .- .CORRECT .ANSWER .-The .name
.of .the .counselor;
.The .name .of .the .counseling .agency;
.The .employer .HCS .(Housing .Counseling .System) .ID .of .the .counseling .entity;
.The .date .and .signature .of .both .the .counselor .and .all .prospective .borrowers;
.The .date .that .that .the .client .completed .counseling;
.The .expiration .date .for .the .certificate .provided .by .the .counselor;
.The .type .of .counseling .performed .(face-to-face .or .telephone);
.The .duration .of .the .counseling .session(s); .and
.If .applicable, .the .signature .of .the .client's .legal .representative
talc .general .overview .- .CORRECT .ANSWER .-Although .the .counselor .can
.provide .a .general .overview .of .reverse .mortgage .costs .to .a .client, .only .a .lender
.can .provide .the .client .with .the .actual .costs .of .a .specific .product. .Only .the
.client .can .weigh .the .costs .and .benefits .of .a .reverse .mortgage .for .himself .or
.herself .to .determine .whether .or .not .the .loan .would .meets .his .or .her .needs .and
.circumstances
Questions and Answers A+ Graded
The .objective .of .reverse .mortgage .counseling .is .to .educate .clients .on .-
.CORRECT .ANSWER .-how .reverse .mortgages .work .and .their .implications
· .the .appropriateness .of .a .reverse .mortgage .for .their .personal .and .financial
situations, .and
· .possible .financial .alternatives .to .reverse .mortgages
The .following .topics .must .be .thoroughly .covered .in .every .reverse .mortgage
counseling .session .- .CORRECT .ANSWER .-client .needs .and .circumstances
· .features .of .a .reverse .mortgage
· .client .responsibilities .under .a .reverse .mortgage
· .costs .to .obtain .a .reverse .mortgage
· .financial/tax .implications .of .a .reverse .mortgage
· .financial .or .social .service .alternatives .to .a .reverse .mortgage, .and
· .warnings .about .potential .reverse .mortgage/insurance .fraud .schemes .and
elder .abuse.
Once .the .counseling .session .is .complete, .the .counselor .should .complete .the
.client .file, .either
paper .or .electronic .is .acceptable. .As .stated .in .HUD's .Housing .Counseling
.Handbook, .all
counseling .agencies .must .maintain .a .separate, .confidential .file .for .each .client.
.The .counselor
must .ensure .that .the .file .contains .all .of .the .following .conten .- .CORRECT
.ANSWER .-File .number: .A .file .number .for .the .unique .counseling .interaction;
□ .Financial .Analysis/Budget: .Evidence .of .analysis .of .the .client's .unique
.financial .and .credit
circumstances .as .they .relate .to .the .reverse .mortgage;
□ .Required .Data: .All .required .fields .listed .in .the .Interface .Control .Document
.(ICD) .of .the
Client .Management .System .- .details .regarding .these .fields .can .be .found .at:
http://www.hud.gov/counselors/.
□ .Activity .Log: .A .record .of .the .date, .time, .duration, .and .description .of .each
.interaction .or
activity .performed .with, .on .behalf .of, .and .by, .the .client;
□ .Follow .up: .A .record .of .all .follow-up .communication .with .the .client .must .be
.documented.
This .documentation .must .also .include .an .account .of .all .attempts .to .contact
.clients .to .conduct
follow-up .sessions;
, □ .Counseling .Participants: .Listing .of .people .other .than .the .borrower(s) .that
.attended .the
reverse .mortgage .counseling .session .and .a .description .of .their .relationship .to
.the .client(s);
□ .Counseling .Certificate: .Signed .and .dated .HECM .counseling .certificate; .if .the
.certificate
was .not .issued, .the .reason .why .it .was .withheld;
.Agency .Disclosure .Statement: .A .copy .of .the .disclosure .statement .provided .to
.each .client .in
a .face-to-face .setting .or .a .notation .of .the .date .that .the .disclosure .statement
.was .verbally .or
electronically .provided .during .telephone .counseling. .The .disclosure .statement
.identifies .the
agency .and .explicitly .describes .the .various .types .of .services .that .it .provides. .It
.must .clearly
state .that .the .client .is .not .obligated .to .receive, .purchase, .or .use .any .other
.services .offered .by
the .organization .or .its .exclusive .partners, .in .order .to .receive .counseling
.services. .For .clients
receiving .telephone .counseling, .the .agency .must .verbally .or .electronically
.provide .a
disclosure .that .meets .these .requirements.
□ .Power .of .Attorney .or .other .documents .relating .to .legal .compe
When .the .counselor .performs .emergency .counseling .and .the .client .receives
the .information .packet .during .or .after .the .counseling .session, .counselors
should .- .CORRECT .ANSWER .-wait .24 .to .48 .hours .to .contact .the .client .so .that
.the .client .has .time .to .review
the .materials .and .consider .his/her .options, .and
· .emphasize .that .the .client .may .call .the .counselor .at .any .time .with .additional
questions .or .concerns.
The .counselor .must .record .on .the .certificate .- .CORRECT .ANSWER .-The .name
.of .the .counselor;
.The .name .of .the .counseling .agency;
.The .employer .HCS .(Housing .Counseling .System) .ID .of .the .counseling .entity;
.The .date .and .signature .of .both .the .counselor .and .all .prospective .borrowers;
.The .date .that .that .the .client .completed .counseling;
.The .expiration .date .for .the .certificate .provided .by .the .counselor;
.The .type .of .counseling .performed .(face-to-face .or .telephone);
.The .duration .of .the .counseling .session(s); .and
.If .applicable, .the .signature .of .the .client's .legal .representative
talc .general .overview .- .CORRECT .ANSWER .-Although .the .counselor .can
.provide .a .general .overview .of .reverse .mortgage .costs .to .a .client, .only .a .lender
.can .provide .the .client .with .the .actual .costs .of .a .specific .product. .Only .the
.client .can .weigh .the .costs .and .benefits .of .a .reverse .mortgage .for .himself .or
.herself .to .determine .whether .or .not .the .loan .would .meets .his .or .her .needs .and
.circumstances
