Page | 1
HECM TEST 2025 QUESTIONS AND
ANSWERS.
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 - solution - 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. -
solution - True
All of the below statements are requirements that each agency must
follow EXCEPT:
, Page | 2
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 - solution - B
T/F Reverse Mortgage counselors must discuss an action plan
during each counseling session. - solution - 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. - solution - D.
Which of the follow best defines a Reverse Mortgage:
, Page | 3
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.
- solution - C
T/F Agencies are permitted to conduct marketing and outreach
including providing general information about housing
opportunities and raising awareness about critical housing topics. -
solution - 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 - solution - F
, Page | 4
T/F To receive a FHA HECM loan, a borrower must first receive One-
on- One Counseling from a certified HECM Counselor. - solution -
True
T/F A reverse mortgage counseling agency may 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. - solution - False
T/F Clients must not be turned away because of an inability to pay
counseling fee - solution - False
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 - solution - A.
What are the names of the 2 HUD Booklets that each client must
receive before completing a counseling session? - solution -
Preparing for Your Counseling Session
Use Your Home to Stay at Home - A Guide for Homeowners Who
Need Help Now
HECM TEST 2025 QUESTIONS AND
ANSWERS.
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 - solution - 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. -
solution - True
All of the below statements are requirements that each agency must
follow EXCEPT:
, Page | 2
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 - solution - B
T/F Reverse Mortgage counselors must discuss an action plan
during each counseling session. - solution - 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. - solution - D.
Which of the follow best defines a Reverse Mortgage:
, Page | 3
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.
- solution - C
T/F Agencies are permitted to conduct marketing and outreach
including providing general information about housing
opportunities and raising awareness about critical housing topics. -
solution - 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 - solution - F
, Page | 4
T/F To receive a FHA HECM loan, a borrower must first receive One-
on- One Counseling from a certified HECM Counselor. - solution -
True
T/F A reverse mortgage counseling agency may 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. - solution - False
T/F Clients must not be turned away because of an inability to pay
counseling fee - solution - False
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 - solution - A.
What are the names of the 2 HUD Booklets that each client must
receive before completing a counseling session? - solution -
Preparing for Your Counseling Session
Use Your Home to Stay at Home - A Guide for Homeowners Who
Need Help Now
