HECM TEST COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS (DETAILED &
ELABORATED) ACTUAL EXAM 2026 TEST!!
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:
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
, 2
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:
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)
, 3
E. a , b , c
F. a , c , d - (Correct Answer)-F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-One 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.
What are the names of the 2 HUD Booklets that each client must receive before completing a
counseling session? - (Correct 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
ELABORATED) ACTUAL EXAM 2026 TEST!!
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:
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
, 2
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:
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)
, 3
E. a , b , c
F. a , c , d - (Correct Answer)-F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-One 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.
What are the names of the 2 HUD Booklets that each client must receive before completing a
counseling session? - (Correct 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
