by Karen Keating
Record numbers of homeowners are using reverse mortgages as part of their retirement planning. This is driving the need for qualified professionals who can explain homeowner options and help them make more informed choices.
The National Reverse Mortgage Lenders Association (NRMLA) is the national voice of the reverse mortgage industry, serving as an educational resource, policy advocate and public affairs center for lenders and related professionals. NRMLA was established in 1997 to enhance the professionalism of the reverse mortgage business. Their mission is to educate consumers about the pros and cons of reverse mortgages, to train lenders to be sensitive to clients’ needs, to enforce their Code of Conduct and Best Practices, and to promote reverse mortgages in the news media.
The CRMP designation was created by an Independent Certification Committee comprising members of NRMLA that administer the program, while working in concert with Professional Testing, Inc. For three decades, Professional Testing has developed more than 2,500 programs, administered over 1.2 million exams, and maintained licensure and professional certification examination programs for 125 occupations.
“We were intent on creating a Certification that is rigid enough to demand the respect of professionals and government officials and the confidence of America’s seniors,” says Peter Bell, NRMLA President. “On behalf of the entire membership, we congratulate our designees, all of whom have demonstrated a deep understanding of the product and an eagerness to continually pursue additional education. Earning the CRMP will distinguish them as having demonstrated superior knowledge and competency in the area of reverse mortgages and dedication to upholding the highest ethical and professional standards.”
When you talk about hot topics, few are as important as the credibility of reverse mortgage loan originators at this time. We hear it from politicians and regulators and in the voices of the consumers who call us about heavy-handed sales tactics and misinformation being given out. NRMLA is trying to address these concerns by adopting the industry’s first professional designation-known as the Certified Reverse Mortgage Professional (CRMP).
NRMLA has invested two years and hundreds of thousands of dollars crafting the credential. The process has been guided by the highly experienced staff at Professional Testing, Inc. (Orlando, FL) working with a dedicated group of volunteers with expertise in operations, origination, processing, underwriting and servicing.
Two years may seem like a long time, bur NRMLA wanted to adopt a well thought through designation, one that would not be easy to obtain, and would challenge even the most seasoned veterans. There are companies and loan officers operating in our industry who probably should not be. They don’t understand the product and they do not act in the best interests of their senior clients. It is NRMLA’s hope that the CRMP will separate the dedicated professionals from the posers, so that public trust in the reverse mortgage business can be sustained.
The knowledge points that every applicant seeking the CRMP should have a thorough knowledge of and the identified areas of the business that all CRMP should have a basic knowledge of are:
1) assessing clients’ motivations;
2) educating seniors, family members and trusted advisors;
3) setting expectations;
4) originating loans;
5) processing loans;
6) underwriting loans;
7) closing, funding and post-closing activities;
8 ) servicing;
9) managing reverse mortgage operations;
NRMLA began the process of selecting Item Writers to develop the exam questions. In February 2009, a new group of 12 volunteers convened in Orlando.
The group underwent rigorous training from Professional Testing on proper exam writing techniques. This forced people to think carefully about how questions and responses should be worded, so as not to make the exam too hard or easy.
The questions that were developed varied and encompassed a broad range of topics. They not only included the typical duties and tasks that a CRMP applicant would encounter in their regular duties, but also an understanding of HUD guidelines, handbooks, Mortgagee letters, and policies as well as proper advertising, ethics, compliance, etc.
The exam questions were reviewed by Professional Testing and incorporated into an Item Bank. Another task force was formed in May 2009 to review the exam questions for accuracy, clarity and grammar. All 350 questions were examined, and if necessary, updated.
Professional Testing updated the Item Bank and in July 2009, NRMLA invited 35 reverse mortgage professionals to sit for a test at Metlife Bank’s facility in Bridgewater, N.J. Most of the participants had at least five years experience in the business, making them a high-level group of candidates.
In mid-August 2009, another group of ten members met in Washington, D.C. to review the test scores. Along with the test scores, each question was reviewed and re-evaluated. There was much debate over what the passing score should be. After everyone’s input was collected, Professional Testing produced a Passing Score Study Meeting Summary that NRMLA recently presented to the ICC for review and approval.
On February 26, 2010, a select group of candidates sat for the first formal test at the NRMLA Roadshow in Atlanta, GA. Of this group, 13 CRMP designees, of which I am one, will be honored at a ceremony at NRMLA’s annual meeting which will take place November 3 – 5 at the Roosevelt Hotel in New Orleans, LA.
Overview of the Certified Reverse Mortgage Professional:
Earning the CRMP will distinguish you as someone who has demonstrated superior knowledge and competency in the area of reverse mortgages and dedication to upholding the highest ethical and professional standards.
All CRMP applicants must meet the following requirements:
- All loan officer applicants must have a minimum 2 years experience originating reverse mortgages and closed at least 50 reverse mortgages.
- All other applicants who are not loan officers must have a minimum 5 years experience working in reverse mortgages in one or more of the following areas: underwriting, processing, management and operations, title and closing services, appraisals, and/or loan servicing.
- Within one year prior to taking the examination, applicants must complete 12 hours of continuing education from NRMLA or such other providers as approved by NRMLA in areas related to reverse mortgages and senior financial issues.
- Possession of a current mortgage loan originator license in your jurisdiction, if a license is required.
- Completion of a background check. Once an applicant has met all the requirements and has passed the exam, he or she will need to have a background check by our designated vendor. The background check costs $49.50 (unless otherwise noted) and is paid by the applicant directly to the vendor.
- Submission of a signed Consent Statement.
If you have any further questions about the CRMP, please contact Darryl Hicks, at 202-939-1784, or at dhicks@dworbell.com.
This article by Karen Keating appears in the November 2010 issue of The Reverse Review
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