Page|1
HECM TEST 2026\2027 QUESTIONS AND
ANSWERS.
A 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:
, Page|2
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:
, Page|3
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
, Page|4
T/F To receive a FHA HECM loan, a borrower must first receive One-
onOne 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.
HECM TEST 2026\2027 QUESTIONS AND
ANSWERS.
A 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:
, Page|2
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:
, Page|3
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
, Page|4
T/F To receive a FHA HECM loan, a borrower must first receive One-
onOne 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.
