CORRECT ANSWER : E. - Latest (Verified Answers) Question : A Counseli...

HECM Test Questions and Answers Latest (Verified Answers)

Question : A Counseling Agency's failure to follow all basic

requirements required by HUD could result in which of the

following:

• Termination of agency's HUD approval
• Suspension of agency's HUD approval
• Forfeiture of remaining federal grant funds
• Fines and or imprisonment
• a , b , and c
• all of the above

CORRECT ANSWER : E.

Question : Termination of agency's HUD approval

Suspension of agency's HUD approval Forfeiture of remaining federal grant funds

CORRECT ANSWER : Termination of agency's HUD

approval Suspension of agency's HUD approval

Forfeiture of remaining federal grant funds

Question : T/F A counseling agency must offer and provide

face-to-face counseling to clients that prefer this format whenever possible.

CORRECT ANSWER : True

Question : 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.

• An agency must maintain a national license and a separate

license for each state in which services are provided.

• An agency must make reasonable efforts to provide

language assistance to persons who are Limited English Proficiency (LEP).

• 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

Question : T/F Reverse Mortgage counselors must discuss an

action plan during each counseling session.

CORRECT ANSWER : False

Question : All of the following are true of the client's required

"follow up" EXCEPT:

• The follow-up must be completed by a Certified HECM

Counselor

• verbal attempts must be made to contact the client for

follow-up

• A written letter to the client must request the client contact

the agency within 30 days of the date of the letter.

• 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.

Question : Which of the follow best defines a Reverse

Mortgage:

• 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)

• A mortgage available to those with 100% equity and a

home in good condition that requires no repairs.

• A mortgage product that pays a homeowner loan proceeds

drawn from accumulated home equity and that requires no repayment until a future time.

• A refinance of an existing mortgage only for borrowers 62

years or older.

CORRECT ANSWER : C

Question : 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

Question : An agency's staff will be required to have an up-to-

date knowledge of which of the following: