HECM Practice EXAM 2025 (Actual
Exam) Questions with verified Answers
(Latest Update 2025) UPDATE!! HECM
Test
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
T/F A counseling agency must offer and provide face-to-face counseling to
clients that prefer this format whenever possible. - 🧠 ANSWER ✔✔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 - 🧠
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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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 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
Exam) Questions with verified Answers
(Latest Update 2025) UPDATE!! HECM
Test
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
T/F A counseling agency must offer and provide face-to-face counseling to
clients that prefer this format whenever possible. - 🧠 ANSWER ✔✔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 - 🧠
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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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 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
