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HECM Practice EXAM 2025 (Actual Exam)
Questions with verified Answers (Latest
Update 2025) UPDATE!! HECM Test
Questions and Correct Answers/ Latest
Update / Already Graded
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
Ans: 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.
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Ans: 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
Ans: B
T/F Reverse Mortgage counselors must discuss an action plan during
each counseling session.
Ans: 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
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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.
Ans: 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.
Ans: C
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T/F Agencies are permitted to conduct marketing and outreach
including providing general information about housing opportunities
and raising awareness about critical housing topics.
Ans: 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
Ans: F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-
One Counseling from a certified HECM Counselor.
Ans: True
All rights reserved © 2025/ 2026 |
HECM Practice EXAM 2025 (Actual Exam)
Questions with verified Answers (Latest
Update 2025) UPDATE!! HECM Test
Questions and Correct Answers/ Latest
Update / Already Graded
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
Ans: 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.
All rights reserved © 2025/ 2026 |
, Page |2
Ans: 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
Ans: B
T/F Reverse Mortgage counselors must discuss an action plan during
each counseling session.
Ans: 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
All rights reserved © 2025/ 2026 |
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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.
Ans: 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.
Ans: C
All rights reserved © 2025/ 2026 |
, Page |4
T/F Agencies are permitted to conduct marketing and outreach
including providing general information about housing opportunities
and raising awareness about critical housing topics.
Ans: 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
Ans: F
T/F To receive a FHA HECM loan, a borrower must first receive One-on-
One Counseling from a certified HECM Counselor.
Ans: True
All rights reserved © 2025/ 2026 |
