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Free CRMP Practice Questions

10 free, exam-style Certified Reverse Mortgage Professional (CRMP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CRMP practice test to study every exam domain.

These 10 free CRMP questions are organized by exam domain, so you can see how each part of the Certified Reverse Mortgage Professional blueprint is tested. Reveal the answer and explanation under each question.

Domain 1: Assessing Clients\

Question 1

A 70-year-old owns a home appraised at $2,300,000 and wants to access the largest possible amount of equity. Which product is generally MOST appropriate?

  1. A HECM, because the FHA program places no ceiling on the maximum claim amount
  2. A fixed-rate HECM, since the single lump-sum disbursement returns the most cash
  3. A proprietary reverse mortgage, which is not capped by the FHA HECM lending limit
  4. A HECM for Purchase, because it is designed for higher-value properties
Show answer & explanation

Correct answer: C - A proprietary reverse mortgage, which is not capped by the FHA HECM lending limit

Question 2

All of the following make a HECM due and payable EXCEPT:

  1. The borrower spends three months at an adult child's home, then returns
  2. The last surviving borrower on the loan passes away with no eligible surviving spouse
  3. The borrower permanently relocates into a long-term assisted-living facility
  4. The borrower sells the property and transfers title to a new owner at closing
Show answer & explanation

Correct answer: A - The borrower spends three months at an adult child's home, then returns

Domain 2: Educating Seniors, Families, and Trusted Advisors 19.13% of exam

Question 3

During financial assessment, an applicant shows adequate income but a documented history of paying property taxes late. What is the MOST likely outcome?

  1. The application is denied because the credit history shows repeated delinquencies
  2. The lender raises the interest rate to offset the documented repayment risk
  3. A Life Expectancy Set-Aside is established to pay future property charges
  4. A larger origination fee is charged to compensate for the added servicing burden
Show answer & explanation

Correct answer: C - A Life Expectancy Set-Aside is established to pay future property charges

Question 4

A property requires repairs estimated at $8,000, to be completed after closing. Excluding any administration fee, what is the amount of the repair set-aside?

  1. $8,000
  2. $10,000
  3. $5,333
  4. $12,000
Show answer & explanation

Correct answer: D - $12,000

Domain 3: Setting Expectations 20.87% of exam

Question 5

A borrower's initial principal limit is $200,000, and her mandatory obligations (existing mortgage payoff plus required closing costs) total $150,000. What is the MAXIMUM she may access during the first 12-month disbursement period?

  1. $120,000, since first-year draws are strictly limited to 60% of the principal limit
  2. $170,000, because she may take her mandatory obligations plus 10% of the principal limit
  3. $200,000, as the full principal limit becomes available once obligations are accounted for
  4. $150,000, equal to the mandatory obligations she must satisfy at closing
Show answer & explanation

Correct answer: B - $170,000, because she may take her mandatory obligations plus 10% of the principal limit

Question 6

A home is valued at $300,000. Under HUD's tiered cap, what is the MAXIMUM allowable HECM origination fee?

  1. $6,000
  2. $5,000
  3. $4,000
  4. $3,000
Show answer & explanation

Correct answer: B - $5,000

Question 7

On an adjustable-rate HECM, what is the correct relationship between the EXPECTED interest rate and the ACTUAL (note) interest rate?

  1. The actual rate sets the principal limit, while the expected rate accrues the interest charged
  2. The two rates are always identical on an adjustable-rate HECM at the time of closing
  3. The expected rate sets the principal limit; the actual rate accrues interest on the balance
  4. The expected rate applies only to fixed-rate HECMs and never to adjustable-rate ones
Show answer & explanation

Correct answer: C - The expected rate sets the principal limit; the actual rate accrues interest on the balance

Domain 4: Originating Loans 9.57% of exam

Question 8

A HECM borrower dies. His surviving spouse was married to him at closing, is named as an eligible non-borrowing spouse in the loan documents, and continues to occupy the home as her principal residence. What happens?

  1. The loan becomes immediately due and payable in full upon the borrowing spouse's death
  2. She must refinance the entire balance into her own name within 90 days to keep the home
  3. She continues to receive the same monthly tenure payments the borrower had been paid
  4. She may remain under the deferral period, but gets no further proceeds
Show answer & explanation

Correct answer: D - She may remain under the deferral period, but gets no further proceeds

Question 9

A HECM balance has grown to $300,000, but the home now appraises at $300,000 and the market is soft. The heirs wish to KEEP the home after the borrower's death. Under the non-recourse feature, they may satisfy the debt by paying:

  1. $285,000, which is 95% of the current appraised value
  2. $95,000, reflecting the 95% non-recourse reduction
  3. The full $300,000 outstanding balance, since they are retaining the property
  4. Nothing, because under non-recourse the title simply passes to the heirs free and clear
Show answer & explanation

Correct answer: A - $285,000, which is 95% of the current appraised value

Domain 5: Processing Loans 20.00% of exam

Question 10

A loan officer tells a prospective borrower that she can have the reverse mortgage only if she uses a portion of the proceeds to purchase an annuity the officer also sells. Under the NRMLA Code of Ethics, this practice is:

  1. Acceptable, provided the cross-sale is fully disclosed to the borrower in writing
  2. Acceptable, because diversifying into an annuity benefits the client's portfolio
  3. Required, as part of documenting the borrower's overall financial suitability
  4. Prohibited; conditioning the loan on another purchase violates the Code of Ethics
Show answer & explanation

Correct answer: D - Prohibited; conditioning the loan on another purchase violates the Code of Ethics

The rest of the CRMP blueprint

The CRMP exam also covers these domains. Drill them in the full free practice test:

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