HECM EXAM QUESTIONS WITH CORRECT
ANSWERS – LATEST UPDATE 2026/2027 | GRADED
A+ | GUARANTEED PASS!!
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 - ANSWER E.
Termination of agency's HUD approval
Suspension of agency's HUD approval
Forfeiture of remaining federal grant funds
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 - ANSWER
B
,T/F Reverse Mortgage counselors must discuss an action plan during
each counseling session. - 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. - 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. -
ANSWER C
T/F A counseling agency must offer and provide face-to-face
counseling to clients that prefer this format whenever possible. -
ANSWER True
, T/F Agencies are permitted to conduct marketing and outreach
including providing general information about housing
opportunities and raising awareness about critical housing
topics. - 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 - ANSWER F
T/F To receive a FHA HECM loan, a borrower must first receive One-
on-One Counseling from a certified HECM Counselor. - ANSWER
True
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 - ANSWER A.
What are the names of the 2 HUD Booklets that each client must
receive before completing a counseling session? - ANSWER
Preparing for Your Counseling
Session
ANSWERS – LATEST UPDATE 2026/2027 | GRADED
A+ | GUARANTEED PASS!!
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 - ANSWER E.
Termination of agency's HUD approval
Suspension of agency's HUD approval
Forfeiture of remaining federal grant funds
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 - ANSWER
B
,T/F Reverse Mortgage counselors must discuss an action plan during
each counseling session. - 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. - 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. -
ANSWER C
T/F A counseling agency must offer and provide face-to-face
counseling to clients that prefer this format whenever possible. -
ANSWER True
, T/F Agencies are permitted to conduct marketing and outreach
including providing general information about housing
opportunities and raising awareness about critical housing
topics. - 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 - ANSWER F
T/F To receive a FHA HECM loan, a borrower must first receive One-
on-One Counseling from a certified HECM Counselor. - ANSWER
True
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 - ANSWER A.
What are the names of the 2 HUD Booklets that each client must
receive before completing a counseling session? - ANSWER
Preparing for Your Counseling
Session
