HECM Test
Study online at https://quizlet.com/_37aq97
1. A Counseling Agency's failure to follow all basic re- E.
quirements required by HUD could result in which of
the following: Termination of agency's
A. Termination of agency's HUD approval HUD approval
B. Suspension of agency's HUD approval Suspension of agency's
C. Forfeiture of remaining federal grant funds HUD approval
D. Fines and or imprisonment Forfeiture of remaining
E. a , b , and c federal grant funds
F. all of the above
2. T/F A counseling agency must offer and provide True
face-to-face counseling to clients that prefer this for-
mat whenever possible.
3. All of the below statements are requirements that B
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 Eng-
lish 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
4. T/F Reverse Mortgage counselors must discuss an ac- False
tion plan during each counseling session.
, HECM Test
Study online at https://quizlet.com/_37aq97
5. All of the following are true of the client's required D.
"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.
6. Which of the follow best defines a Reverse Mortgage: C
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 bor-
rowers 62 years or older.
7. T/F Agencies are permitted to conduct marketing True
and outreach including providing general information
about housing opportunities and raising awareness
about critical housing topics.
, HECM Test
Study online at https://quizlet.com/_37aq97
8. An agency's staff will be required to have an F
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
9. T/F To receive a FHA HECM loan, a borrower must True
first receive One-on-One Counseling from a certified
HECM Counselor.
10. T/F A reverse mortgage counseling agency may False
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.
11. T/F Clients must not be turned away because of an False
inability to pay counseling fee
12. All are true of entities eligible to provide Reverse Mort- A.
gage Counseling EXCEPT:
A.An agency must have an affiliating lending institu-
tion 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
, HECM Test
Study online at https://quizlet.com/_37aq97
13. What are the names of the 2 HUD Booklets that each Preparing for Your Coun-
client must receive before completing a counseling seling Session
session? Use Your Home to Stay
at Home - A Guide for
Homeowners Who Need
Help Now
14. Each counseling session must include discussion on E
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 Mort-
gage
D. Title retention
E. All of the above
15. If the national lending limit is $625,500 and a client's A
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
16. If the national lending limit is $625,500 and a client's Maximum Claim Amount
estimated appraised value is $820,000, what is this (Lending limit is the same
calculation called? thing)
17. T/F Borrowers should be encouraged by their Loan Of- False
ficer to consult a financial planner before proceeding
with a Reverse Mortgage.
Study online at https://quizlet.com/_37aq97
1. A Counseling Agency's failure to follow all basic re- E.
quirements required by HUD could result in which of
the following: Termination of agency's
A. Termination of agency's HUD approval HUD approval
B. Suspension of agency's HUD approval Suspension of agency's
C. Forfeiture of remaining federal grant funds HUD approval
D. Fines and or imprisonment Forfeiture of remaining
E. a , b , and c federal grant funds
F. all of the above
2. T/F A counseling agency must offer and provide True
face-to-face counseling to clients that prefer this for-
mat whenever possible.
3. All of the below statements are requirements that B
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 Eng-
lish 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
4. T/F Reverse Mortgage counselors must discuss an ac- False
tion plan during each counseling session.
, HECM Test
Study online at https://quizlet.com/_37aq97
5. All of the following are true of the client's required D.
"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.
6. Which of the follow best defines a Reverse Mortgage: C
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 bor-
rowers 62 years or older.
7. T/F Agencies are permitted to conduct marketing True
and outreach including providing general information
about housing opportunities and raising awareness
about critical housing topics.
, HECM Test
Study online at https://quizlet.com/_37aq97
8. An agency's staff will be required to have an F
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
9. T/F To receive a FHA HECM loan, a borrower must True
first receive One-on-One Counseling from a certified
HECM Counselor.
10. T/F A reverse mortgage counseling agency may False
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.
11. T/F Clients must not be turned away because of an False
inability to pay counseling fee
12. All are true of entities eligible to provide Reverse Mort- A.
gage Counseling EXCEPT:
A.An agency must have an affiliating lending institu-
tion 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
, HECM Test
Study online at https://quizlet.com/_37aq97
13. What are the names of the 2 HUD Booklets that each Preparing for Your Coun-
client must receive before completing a counseling seling Session
session? Use Your Home to Stay
at Home - A Guide for
Homeowners Who Need
Help Now
14. Each counseling session must include discussion on E
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 Mort-
gage
D. Title retention
E. All of the above
15. If the national lending limit is $625,500 and a client's A
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
16. If the national lending limit is $625,500 and a client's Maximum Claim Amount
estimated appraised value is $820,000, what is this (Lending limit is the same
calculation called? thing)
17. T/F Borrowers should be encouraged by their Loan Of- False
ficer to consult a financial planner before proceeding
with a Reverse Mortgage.
