CRMP NRMLA Certified Reverse Mortgage
Professional Exam Questions AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE
Q&A 2026 |INSTANT DOWNLOAD PDF
1.What is a reverse mortgage?
A. A loan where the homeowner makes monthly payments to
the lender
B. A mortgage allowing homeowners to convert home equity
into cash *
C. A traditional mortgage with fixed monthly payments
D. A loan only for first-time homebuyers
Rationale:
• A: Incorrect – payments go from lender to homeowner.
• B: Correct – reverse mortgages pay homeowners using
their home equity.
• C: Incorrect – that describes a traditional mortgage.
• D: Incorrect – eligibility is for seniors, not just first-time
buyers.
2. What is the minimum age requirement for a reverse
mortgage under FHA rules?
A. 55 years
, B. 60 years
C. 62 years *
D. 65 years
Rationale:
• A/B/D: Incorrect – the federal requirement is 62 years.
• C: Correct – borrowers must be at least 62 for a Home
Equity Conversion Mortgage (HECM).
3. Which type of property is eligible for a reverse mortgage?
A. Single-family home *
B. Multi-unit property (up to 4 units) *
C. Vacation home
D. Manufactured home on leased land
Rationale:
• A/B: Correct – single-family and 2–4 unit homes with one
owner occupant are eligible.
• C/D: Incorrect – vacation homes and leased manufactured
homes usually do not qualify.
4. Which of the following is a primary reason borrowers
take a reverse mortgage?
A. Reduce monthly mortgage payments
B. Access home equity for retirement income *
, C. Lower property taxes
D. Fund short-term vacation trips
Rationale:
• B: Correct – reverse mortgages convert home equity into
cash to supplement retirement.
• A/C/D: Incorrect – these are not primary reasons for
reverse mortgages.
5. How is the loan amount in a reverse mortgage
determined?
A. Current home value, age of youngest borrower, interest
rates, and lending limits *
B. Only by the home’s appraised value
C. Based on borrower’s income
D. Based on monthly mortgage payments
Rationale:
• A: Correct – multiple factors determine the principal limit.
• B/C/D: Incorrect – borrower income is not required;
monthly payments are irrelevant.
6. Which of the following reverse mortgage payment
options are available?
A. Lump sum *
B. Tenure (monthly payments for life) *
, C. Line of credit *
D. Fixed monthly payments for 5 years
Rationale:
• A/B/C: Correct – these are the main reverse mortgage
disbursement options.
• D: Incorrect – fixed 5-year payments are not standard
HECM options.
7. What happens if a reverse mortgage borrower fails to
pay property taxes or homeowners insurance?
A. Nothing, the loan is interest-free
B. The lender can require repayment *
C. The government covers the cost
D. The borrower loses tax deductions
Rationale:
• B: Correct – non-payment can lead to default and
foreclosure.
• A/C/D: Incorrect – taxes and insurance are borrower
responsibilities.
8. Which agency insures federally backed reverse
mortgages?
A. FHA *
B. VA
Professional Exam Questions AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE
Q&A 2026 |INSTANT DOWNLOAD PDF
1.What is a reverse mortgage?
A. A loan where the homeowner makes monthly payments to
the lender
B. A mortgage allowing homeowners to convert home equity
into cash *
C. A traditional mortgage with fixed monthly payments
D. A loan only for first-time homebuyers
Rationale:
• A: Incorrect – payments go from lender to homeowner.
• B: Correct – reverse mortgages pay homeowners using
their home equity.
• C: Incorrect – that describes a traditional mortgage.
• D: Incorrect – eligibility is for seniors, not just first-time
buyers.
2. What is the minimum age requirement for a reverse
mortgage under FHA rules?
A. 55 years
, B. 60 years
C. 62 years *
D. 65 years
Rationale:
• A/B/D: Incorrect – the federal requirement is 62 years.
• C: Correct – borrowers must be at least 62 for a Home
Equity Conversion Mortgage (HECM).
3. Which type of property is eligible for a reverse mortgage?
A. Single-family home *
B. Multi-unit property (up to 4 units) *
C. Vacation home
D. Manufactured home on leased land
Rationale:
• A/B: Correct – single-family and 2–4 unit homes with one
owner occupant are eligible.
• C/D: Incorrect – vacation homes and leased manufactured
homes usually do not qualify.
4. Which of the following is a primary reason borrowers
take a reverse mortgage?
A. Reduce monthly mortgage payments
B. Access home equity for retirement income *
, C. Lower property taxes
D. Fund short-term vacation trips
Rationale:
• B: Correct – reverse mortgages convert home equity into
cash to supplement retirement.
• A/C/D: Incorrect – these are not primary reasons for
reverse mortgages.
5. How is the loan amount in a reverse mortgage
determined?
A. Current home value, age of youngest borrower, interest
rates, and lending limits *
B. Only by the home’s appraised value
C. Based on borrower’s income
D. Based on monthly mortgage payments
Rationale:
• A: Correct – multiple factors determine the principal limit.
• B/C/D: Incorrect – borrower income is not required;
monthly payments are irrelevant.
6. Which of the following reverse mortgage payment
options are available?
A. Lump sum *
B. Tenure (monthly payments for life) *
, C. Line of credit *
D. Fixed monthly payments for 5 years
Rationale:
• A/B/C: Correct – these are the main reverse mortgage
disbursement options.
• D: Incorrect – fixed 5-year payments are not standard
HECM options.
7. What happens if a reverse mortgage borrower fails to
pay property taxes or homeowners insurance?
A. Nothing, the loan is interest-free
B. The lender can require repayment *
C. The government covers the cost
D. The borrower loses tax deductions
Rationale:
• B: Correct – non-payment can lead to default and
foreclosure.
• A/C/D: Incorrect – taxes and insurance are borrower
responsibilities.
8. Which agency insures federally backed reverse
mortgages?
A. FHA *
B. VA
