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Reverse Mortgage Signing Agent Certification

The most comprehensive training and certification for loan signing agents for the specialty niche in reverse mortgages.

*****THIS IS NOT THE CRMSP EXAM****** DO NOT TAKE THIS TEST

 

Start

Question 1 of 100

Which is not a safeguard for seniors applying for a reverse mortgage?

A

Advanced disclosures

B

Loan fees are limited

C

Counseling reimbursement

D

Mandatory counseling

Question 2 of 100

In an adjustable rate reverse mortgage signing package, there are two Deeds of Trust?

A

True

B

False

Question 3 of 100

Which is not a factor in how much a client will receive from a reverse mortgage Loan?

A

Age of borrower

B

Value of the home

C

Number of borrowers on the loan

D

Current interest rate

Question 4 of 100

Can clients make payments on their reverse mortgage?

A

Yes

B

No

Question 5 of 100

If a borrower has a fixed interest rate reverse mortgage loan and makes payments on it, will they have access to their loan funds again?

A

Yes

B

No

Question 6 of 100

Are there any restrictions on what a borrower can do with their money received from a reverse mortgage transaction?

A

Yes

B

No

Question 7 of 100

When getting a reverse mortgage loan, does the home have to be paid off - owned free and clear?

A

Yes

B

No

Question 8 of 100

When a borrower already has a first and second mortgage on their home, do they have to use proceeds from the new reverse mortgage to pay those off?

A

No

B

Yes

Question 9 of 100

True or False: When closing a reverse mortgage loan, the bank is listed on the title as an owner, along with the borrowers.

A

True

B

False

Question 10 of 100

When the reverse mortgage loan becomes due, the bank will sell the home and all the possessions in it.

A

Yes

B

No

Question 11 of 100

Many seniors have apprehension about getting a reverse mortgage loan for the following reasons:

A

They are afraid of being taken advantage of

B

It’s a debt

C

It eats up equity

D

All of the above

Question 12 of 100

Does a reverse mortgage loan allow borrowers to access 100% of the equity accumulated in their home?

A

Yes, borrowers can cash out 100% of the value of their home as long as it is their primary residence

B

No, there are safeguards in place that limit the amount of equity a borrower can "tap"

Question 13 of 100

Why do many financial planners suggest reverse mortgage loans?

A

It’s another income stream for retirement funding

B

The borrower's assets are still available if they ever need them

C

It can eliminate a mortgage payment

D

All of the Above

Question 14 of 100

Lucas is considering getting a reverse mortgage loan on his present home to buy a rental property, is this allowed?

A

Yes

B

No

Question 15 of 100

Since Stan receives a payment every month throughout his lifetime for his reverse mortgage loan, how should he handle this "income" on his taxes?

A

Since reverse mortgage loan tenure payments are normally not taxable, he is not required to claim it on his taxes.

B

He will be required to pay standard income taxes

C

It may take years to be reviewed by the IRS so the signing agent may make recommendations based on their own experience

Question 16 of 100

Blanche has a reverse mortgage loan on her present home but is selling it to move closer to her children.  Can she buy her next home with a reverse mortgage loan?

A

No, a borrower can only have one reverse-mortgage per lifetime

B

Yes, as long as a home is categorized as a primary residence, Blanche can purchase the home using a reverse mortgage

Question 17 of 100

Is a borrower required to take a cash payment when closing an adjustable rate reverse mortgage loan?

A

Yes

B

No

Question 18 of 100

Dorothy gets a reverse mortgage loan and chooses to receive $5,000 monthly for 48 months.  What best describes this?

A

Tenure

B

Term

Question 19 of 100

Sophia needs to move six months after she takes out a reverse mortgage loan.  Will she be required to pay a 5% prepayment penalty?

A

Yes

B

No

Question 20 of 100

Rose's mom passes away while having a reverse mortgage on her home in St. Olaf. Rose wants to keep her mom’s home as a rental property.  What is her best option?

A

Put the house on the market and buy it herself

B

Contact the lender to get a payoff figure and refinance it into her name

C

Get an appraisal and take out a loan for the appraised amount, plus 5%

Question 21 of 100

After being married for 30 years, Mario and Kristina took out a reverse mortgage seven years ago, and Kristina recently passed away. What does Mario need to do?

A

Contact the lender to refinance the home

B

Immediately sell the home and pay the loan balance

C

Continue living in the home with no changes to the loan structure

Question 22 of 100

True or False: Like a regular FHA loan, taxes and insurance are included in the monthly payment on a reverse mortgage loan.

A

True

B

False

Question 23 of 100

After meeting with her loan officer, Nina, Freida Claxton has decided to take out a reverse mortgage loan and has reviewed the loan proposal.  What is the next step in the process?

A

Set an appointment for the required counseling

B

Call an appraiser for an inspection

C

Decide how she would like to receive her funds

Question 24 of 100

If George's home is held in a family trust, can he get a reverse mortgage loan?

A

Yes

B

No

Question 25 of 100

How many promissory notes are in a adjustable rate reverse mortgage loan closing package?

A

0

B

1

C

2

D

3

Question 26 of 100

In most cases, how many times will the notary/signing agent have to verify the account that the borrower’s funds will be wired to?

A

0

B

1

C

2

D

3

Question 27 of 100

How many times will the notary/signing agent acknowledge/notarize the checking account information (voided check) so the borrower receives funds in a timely manner?

A

0

B

1

C

2

Question 28 of 100

True or False: Reverse mortgage loans can be beneficial for those who are house rich and cash poor.

A

True

B

False

Question 29 of 100

Yes or No: After the borrower has had the reverse mortgage loan for at least 18 months, and the value has increased significantly, it can be refinanced for more cash.

A

Yes

B

No

Question 30 of 100

True or False: It is common for a notary/signing agent to find purchase loan documents in a reverse mortgage refinance loan package.

A

True

B

No

Question 31 of 100

Which of the following documents would NOT suffice for a secondary form of ID in a reverse mortgage loan signing?

A

Costco Card

B

Water Bill

C

Passport

D

Expired insurance card

Question 32 of 100

What does H.E.C.M stand for?

A

Home Equity Cooperative Management

B

Hamburg Earnings Counseling Mastermind

C

Household Equity Consolidation Management

D

Home Equity Conversion Mortgage

Question 33 of 100

True or False: When refinancing into a reverse mortgage loan, borrowers get a three day right to rescind or cancel.

A

True

B

False

Question 34 of 100

If Sophia is not required to bring any cash to close her reverse mortgage refinance, how have her closing costs been paid?

A

The lender pays the closing costs

B

Reverse mortgages do not have closing costs

C

The closing costs were "rolled into" the loan balance

D

Sophia makes smaller monthly payments on her closing costs for a total of 36 months

Question 35 of 100

Is everyone who lives in a "55 and older" community eligible for a reverse mortgage? 

A

Yes, as long as the home is their primary residence

B

No, the minimum age is still 62 for most reverse mortgages, or age 60 with some of the new loan programs

Question 36 of 100

Rose has a reverse mortgage and she dies at the age of 96, leaving the home to her favorite notary, Bill.

Her home is worth $500,000 and her reverse mortgage balance was only $150,000. What happens to the equity of the home when it is sold for $500,000?

A

The bank gets it

B

Her heirs (In this case, Notary Bill) gets it

C

The state courts get it through probate

D

No one gets it. Once the loan is paid off, the equity "disappears" in legalspeak

Question 37 of 100

Which of these is NOT a benefit of the line of credit option for a reverse mortgage?

A

Has a fixed interest rate

B

Has a growth rate

C

Can be utilized as needed

D

Can be used and paid off multiple times in the life of the loan

Question 38 of 100

Of the options below, which best describes a  reverse mortgage loan?

A

A loan in which the balance owed grows over time

B

A loan that requires the borrower to make mortgage payments for only five years

C

A loan that pays taxes and interest for the borrower

Question 39 of 100

Which of these events trigger the reverse mortgage to be due and payable in full?

A

When the borrower can no longer pay the mortgage payments

B

When the youngest borrower turns 100 years old

C

The 30 year anniversary of the loan

D

When the borrowers no longer occupy the home (because they either moved or passed away)

Question 40 of 100

When a reverse mortgage borrower passes away, what legal options do the heirs have?

A

Move in and assume the reverse mortgage as it is

B

Refinance the mortgage into their names or sell the home

C

Don't inform the lender and rent the home out

Question 41 of 100

Which of the following are NOT part of the Consumer Safeguards for a FHA  reverse mortgage loan?

A

Mandatory counseling is required before receiving a Reverse Mortgage Loan

B

Reverse mortgage loan fees are limited and regulated, and should be consistent from lender to lender.

C

Reverse mortgage Loans are considered non-recourse loans, meaning the borrower will never owe more on the loan than the value of the house.

D

Counseling fees are refundable

Question 42 of 100

In order to be eligible for a reverse mortgage loan the borrower must be which of the following:

A

Eligible for Social Security

B

Pass a medical exam

C

Be at least 70 1/2 Years Old

D

Using the home as their primary residence

Question 43 of 100

True or False:  When the borrower chooses to receive a monthly payment for as long as the borrower lives in the house, it's called "tenure".

A

True

B

False

Question 44 of 100

How may a  reverse mortgage loan borrower choose to get their cash out funds at closing?

(Select all that apply)
A

All at once, in one lump sum

B

Large payment initially and then the availability of a line of credit for the remaining balance

C

A monthly amount for five years and then the availability of a line of credit for the remaining balance

D

All of the above

Question 45 of 100

These are the reasons reverse mortgage loan signing appointments might take longer:

(Select all that apply)
A

More time for writing their signatures and/or some physical restraints

B

Possibility of more questions about the loan

C

The large amount of documents to be signed

D

None of these answers are correct

Question 46 of 100

In October 2015, the new TRID guidelines eliminated the Truth in Lending Disclosure and the HUD-1 Settlement Statement, replacing them with a new combined document, which is NOT included in Reverse mortgage loan document packages. Which document is this?

A

The Combined ALTA Settlement Statement

B

Fannie Mae Form 1003

C

The Closing Disclosure

D

The Patriot Act Form

Question 47 of 100

By many loan officer's estimation and average, how long has a borrower been working with their reverse mortgage loan officer on their reverse mortgage transaction?

A

3-6 months

B

10 - 12 months

C

Two Weeks

Question 48 of 100

How much time should a loan signing agent allow for a reverse mortgage signing?

A

30 minutes or less

B

2 hours

C

1 Hour

Question 49 of 100

Which loan signing agent attributes are most appreciated by reverse mortgage borrowers? 

(Select all that apply)
A

Respect and friendliness

B

Tardiness and impatience

C

Patience & understanding

D

Rushing through a signing

Question 50 of 100

What are three GREAT reasons to specialize in reverse mortgages as a loan signing agent?

(Select all that apply)
A

This particular demographic is interesting, and fun to talk to

B

This market may not hold notary/signing agents to high standards

C

Notary / Signing Agents like to be of service to their community

D

This is a niche market that could improve our revenue

E

Professional expectations may not be as high

Question 51 of 100

As a "best practice," how many times should the notary/signing agent check the documents after they have been signed?

A

No need to check them as long as the signing agent watched the signer sign the documents

B

Once, just after the borrower has completed signing

C

Luckily, escrow officers check the documents

D

Four times- First, as the borrowers are signing; Second, after the signing is complete; Third, in your car, or a location nearby; Fourth, immediately before shipping or dropping off documents

Question 52 of 100

True or False: It is not important to return the documents in the order they were received.

A

True

B

False

Question 53 of 100

In terms of professional etiquette, if the notary is running late to a signing appointment, what should be done?

A

Call the signer as soon as possible to let them know

B

Tell the borrower the signing company gave you the wrong time

C

Don't say anything at all. Nothing can be done about it anyway

Question 54 of 100

If a borrower has been unresponsive to email and text messaging when you attempt to confirm your appointment time, what should the notary do first?

A

Jump into an online forum and complain

B

Pick up the phone and call the contact phone number

C

Rally support for the inconvenience and call the signing company, escrow officer, and lender to share the inconvenience and frustration

D

Assume the signing has been canceled and do not show up or correspond

Question 55 of 100

After completing the signing, how soon should you drop documents off at the shipping facility or client's office?

A

Within 72 hours

B

No need, everything is done electronically

C

ASAP before pickup cut-off time

Question 56 of 100

If an escrow officer, or signing company representative, calls you to advise of an error you made on documents, what is the most appropriate answer?

A

State your case and ask for evidence of the alleged mistake

B

Advise of your fees to correct the document in question

C

Argue with the escrow officer because there is absolutely no way you would have missed that

D

Drop everything and fix it

Question 57 of 100

Choose the fashion that is NOT considered professional attire for your loan signing appointments.

(Select all that apply)
A

Polo shirts with your logo

B

Yoga Pants

C

Pant Suit

D

Jeans with holes in them

E

Flip flop sandals

Question 58 of 100

What should you do if you disagree with the political opinions of your signer?

A

Halt the signing and reschedule them with someone else

B

Nothing, borrowers should NEVER know your political opinions

C

Open up a debate and state your case

D

Call your congressman and stage an intervention

Question 59 of 100

If a borrower is feeling uncertain about moving forward on the loan signing, fearful they are making the wrong decision, what is the most appropriate response?

A

Convince them to sign anyway because they have three days to cancel

B

Tell them they have no choice because you are already there. If you have to come back, there is an additional charge

C

Sign the documents for them

D

Offer to connect them to the loan officer or closing agent that could further answer their questions and offer clarity

Question 60 of 100

When the borrower chooses to receive a monthly payment for one year, it's called "tenure".

A

True

B

False

Question 61 of 100

What are the upfront fees the borrower will pay outside of the loan?

A

Origination fees, credit report fees

B

Appraisal and counseling fees

C

Counseling and credit report fees

Question 62 of 100

The reverse mortgage borrower has some obligations, such as home maintenance, homeowner's insurance and ....

A

making at least one mortgage payment annually

B

agreeing to an annual home inspection

C

staying current on property taxes

Question 63 of 100

If a borrower takes out a fixed rate reverse mortgage loan, how much needs to be taken at closing?

A

60% of what's available to them

B

75% of what's available to them

C

100% of what's available to them

D

None

Question 64 of 100

True or False:  It's important for the borrower to understand that they have no obligation to invest their reverse mortgage payout money in the lender's annuity plans. 

A

True

B

False

Question 65 of 100

What is the NRMLA?

A

National Reverse Mortgage Loans Association

B

Nationwide Reverse Mortgage Lenders Assignors

C

National Reverse Mortgage Lenders Association

D

None of the these

Question 66 of 100

True or False:  There are new reverse mortgage loan products that are not backed by HUD.

A

True

B

False

Question 67 of 100

Which of these is the best description for the Fixed Rate HECM?

A

The borrower can pay it back if they want and reuse the funds

B

The borrower can pay it back if they want but cannot make any additional withdrawals

C

Neither of these answers is correct

Question 68 of 100

Which is not a good candidate for a reverse mortgage loan on their present home?

A

Someone who owns their home free and clear

B

Someone who presently has a HELOC

C

Someone who plans on moving out of state next year

D

Someone who is concerned about outliving their retirement funds

Question 69 of 100

True or False:  The fixed rate reverse mortgage is a closed ended loan.

A

True

B

False

Question 70 of 100

Which figure represents the final amount the borrower will provide or receive at closing?  

A

$11,189.43 paid to the borrower

B

$11,189.43 paid by the borrower

C

$3,878.23 paid to the borrower

D

$3,878.23 paid by the borrower

Question 71 of 100

If a borrower asks which consumer counseling agency they should use, which would the notary advise?  

A

Based on the notary's professional knowledge, they would use their expertise to advise the borrower

B

Due to regulations protecting consumers, the notary would decline to offer a recommendation

C

Because of the notary's affiliation with one of the consumer counseling agencies, it is appropriate to recommend it

D

Because the notary's brother works for Clear Point Financial Solutions, the notary feels obligated to recommend it

Question 72 of 100

If the borrower is a single individual how many tasks must be completed in Section D?  

A

3

B

4

C

5

D

7

Question 73 of 100

How would the notary advise the borrower(s) on this document? 

A

Date and initial

B

Date

C

Initial each paragraph and date

D

Date, sign and initial

Question 74 of 100

What happens if the borrower does not provide a voided check?  

A

The loan is cancelled

B

The refund will be held until the borrower picks it up

C

The refund will be sent to the borrowers via FedEx

D

The refund will be sent to the borrower via U.S. Postal Service

Question 75 of 100

If a voided check is attached to this document, must the borrower's banking information be provided?  

A

Yes

B

No

Question 76 of 100

How many specific actions must the notary make to thoroughly complete this notary acknowledgement?   

A

5

B

6

C

7

D

8

Question 77 of 100

According to this document, by acknowledging this document, the notary is ...    

A

Attesting to the identity of the person(s) signing it

B

Attesting to the accuracy of the banking information

C

Attesting that this is not a fraudulent transaction

Question 78 of 100

Where would the borrower(s) sign this document?  

A

Only Section A

B

Only Section B

C

Both Section A and B

D

The borrower would not sign this document

Question 79 of 100

If the lender had not provided "Power of Attorney" documentation and instructions for a "Power of Attorney" to sign, how would the "Power of Attorney" signing line be addressed on this document?  

A

The notary would sign here

B

The main borrower would sign here

C

The person who identifies themselves as "Power of Attorney" would sign here

D

No one would sign here

Question 80 of 100

Where would the borrower sign this document?  

A

A

B

B

C

Both A and B

Question 81 of 100

Where would the borrower sign this document?  

A

A

B

B

C

Both A and B

Question 82 of 100

Must the borrower sign this document?  

A

Yes

B

No

Question 83 of 100

Based on the 2017 WS Annual Plus, what would the initial disbursement limit be?  

A

$151,697.92

B

$99,000.00

C

$103,140.00

Question 84 of 100

Based on the 2017 WS Annual Plus, what is the available principal limit?  

A

$141,697.92

B

$83,837.92

C

$75,697.92

Question 85 of 100

According to this document, the borrower, Rose Nylen, has requested how much cash at closing?  

A

$6,000.00 initially

B

$131,697.92 initially

C

$10,000.00 initially

Question 86 of 100

If Rose signs this document, is she agreeing to the terms and required to complete the loan process? 

A

Yes

B

No

Question 87 of 100

Why does the line of credit increase year after year?  

A

The growth rate increases the line of credit

B

The line of credit increases if the borrowers are under 70 years of age

C

The line of credit increases only because the borrowers are making payments on the mortgage

Question 88 of 100

What three tasks must be completed by the borrower on this page? 

A

Print and sign name, write the date

B

Initial each paragraph, sign name, write the date

C

Sign name, write social security number, write the date

Question 89 of 100

Where does the borrower sign this document?  

A

Section A

B

Section B

C

Section C

D

A, B, and C

Question 90 of 100

Why are there two notes in an adjustable rate reverse mortgage loan? 

A

One is simply an extra copy for the borrower

B

It's an open-ended loan which requires two notes

C

An original document must stay and be filed by the title agency

Question 91 of 100

Is this correction acceptable on the note? 

A

No

B

Yes

Question 92 of 100

Where would the borrower(s) sign on this page?   

A

Section A

B

Section B

C

Both Section A and B

Question 93 of 100

What type of loan plan is this loan?  

A

Line of credit

B

Term

C

Tenure

Question 94 of 100

How many borrowers will sign this loan application page?  

A

0

B

1

C

2

Question 95 of 100

What is the estimated value of the home?  

A

$300,000.00

B

$5,000.00

C

$389,000.00

D

This answer is not included on this document

Question 96 of 100

What is the growth rate on this 2017 WS Annual Plus loan?  

A

2.375%

B

4.942%

C

14.13%

D

5.691%

Question 97 of 100

How much was Rose's initial mortgage balance? 

A

$6,000.00

B

$33,302.08

C

$2,302.08

D

$151,697.92

Question 98 of 100

What is the monthly mortgage payment when the borrower is 90 years old?

A

$258.00

B

$2,772.00

C

$0

D

$273.00

Question 99 of 100

What is the line of credit when the borrower is 99 years old?

A

$584,370.00

B

$356.675.00

C

$336.372.00

D

$90,191.00

Question 100 of 100

If the borrower makes a mistake on the reverse mortgage note, how should it be handled?

A

The borrower would put a single line through the mistake, correct the mistake and initial it.

B

The notary would ask the signer to re-sign / date the document using the borrower's copy of the note.

C

The entire signing would need to be rescheduled.

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