
As a loan officer or advisor, you're likely no stranger to the world of mortgages. However, reverse mortgages can be a complex and nuanced topic, even for experienced professionals.
To provide the best possible service to your clients, it's essential to have a solid understanding of reverse mortgage basics. A reverse mortgage is a type of loan that allows homeowners to borrow money using the equity in their home as collateral. Typically, homeowners age 62 or older are eligible.
One key thing to keep in mind is that reverse mortgages do not require monthly mortgage payments. Instead, the borrower receives a lump sum, monthly payments, or a line of credit based on the amount of equity in their home. This can be a game-changer for retirees living on a fixed income.
In order to effectively counsel clients on reverse mortgage options, loan officers and advisors need to stay up-to-date on the latest regulations and requirements. This includes understanding the different types of reverse mortgages, such as HECM (Home Equity Conversion Mortgage) and proprietary reverse mortgages.
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What Is a CRMP?
The Certified Reverse Mortgage Professional (CRMP) is a designation that sets you apart in the competitive mortgage loan industry.
To earn the CRMP designation, you'll need to demonstrate knowledge and competency in reverse mortgage lending through a comprehensive exam and meet the requirements of the National Reverse Mortgage Lenders Association (NRMLA).
The CRMP designation is conferred by the NRMLA, which is a mortgage industry trade organization.
You'll need three years of reverse mortgage experience or 50 originated and closed loans to qualify for the CRMP certification.
The CRMP designation is a recognition of the attainment of the highest professional standards in the reverse mortgage industry by mortgage professionals.
The NRMLA Independent Certification Committee (ICC) oversees the development and administration of the CRMP designation, ensuring it meets the highest standards of ethical and professional practice for the reverse mortgage industry.
As a CRMP, you'll be seen as a high-level professional who is knowledgeable and committed to high ethical standards, placing the client's needs above personal gain.
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Eligibility and Requirements
To be eligible for reverse mortgage training, you'll need to meet specific requirements. You must have originated reverse mortgages for at least three years or have worked in a related field for the same amount of time.
To give you a better idea, here are the key requirements:
You'll also need to complete courses on ethics training and preventing, detecting, and reporting elder abuse.
Eligibility Requirements
To be eligible for CRMP certification, you'll need to meet certain requirements. You must have a minimum of three years of experience as a loan originator or have personally originated and closed 50 or more reverse mortgages.
Non-originators can also qualify if they've worked in the reverse mortgage business for at least three years in roles like underwriting, processing, or training.
To receive the CRMP designation, you'll need to meet a few more requirements. These include earning 12 continuing education (CE) credits at an NRMLA conference or through online courses approved by the ICC.
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You'll also need to submit a letter of recommendation from a senior manager, complete a course on ethics training, and complete a course on preventing, detecting, and reporting elder abuse.
Additionally, you'll need to possess a current mortgage loan originator license (if required by your home state) and pass a background check through the ICC.
Here are the main eligibility requirements summarized:
- Loan originators: 3 years of experience or 50+ reverse mortgages originated and closed
- Non-originators: 3 years of experience in roles like underwriting, processing, or training
- Earn 12 CE credits at an NRMLA conference or through approved online courses
- Submit a letter of recommendation from a senior manager
- Complete a course on ethics training
- Complete a course on preventing, detecting, and reporting elder abuse
- Possess a current mortgage loan originator license (if required)
- Pass a background check through the ICC
You'll also need to submit a signed Consent Statement attesting that you'll follow the CRMP code of ethics.
Find a Sponsor
To become a reverse mortgage loan officer, you'll need to find a sponsor who is approved by the Federal Housing Administration (FHA) to offer Home Equity Conversion Mortgages (HECMs). Your sponsor will provide you with training, support, and compensation.
You'll need to sign a contract with your sponsor, which is a crucial step in getting started. This contract will outline the terms of your agreement and what's expected of you.
To find a sponsor, look for lenders or brokers who are FHA-approved to offer HECM loans. You can also check the FHA's website for a list of approved lenders.
Getting Certified
To become a Certified Reverse Mortgage Professional (CRMP), you'll need to meet one of the two eligibility requirements: having at least three years of experience as a loan originator or personally originating and closing 50 or more reverse mortgages, or being a non-originator with three years of experience in a related field.
The application process involves paying a nonrefundable fee of $250, an annual certification fee of $175, and a triennial background check fee of $49.95, totaling at least $474.95. You may also incur additional costs, such as traveling to industry events to earn credits.
To give you a better idea of the costs involved, here's a breakdown of the fees:
The Certified Reverse Mortgage Professional (CRMP) designation is overseen by the National Reverse Mortgage Lenders Association (NRMLA) Independent Certification Committee (ICC), which ensures that the credential meets the highest standards of professional practice for the reverse mortgage industry.
Why Get Crmp Certification?
Getting CRMP certification sets you apart from the competition and helps build trust with clients, demonstrating your expertise and commitment to high ethical standards.
The mortgage loan industry is highly competitive, and reverse mortgages are still a mystery to many people, making CRMP certification a valuable differentiator.
Your CRMP designation signals to borrowers that you're a knowledgeable and committed professional, prioritizing their needs over personal gain.
The CRMP code of ethics, enforced by the National Reverse Mortgage Lenders Association's (NRMLA) Independent Certification Committee (ICC), ensures you're held to a high standard.
Annual continuing education (CE) requirements keep you up to date on reverse mortgage rules and regulations, reassuring clients of your expertise and commitment to excellence.
Get Licensed
To become a reverse mortgage loan officer, you'll need to get licensed. This typically involves obtaining a Mortgage Loan Originator (MLO) license through the Nationwide Multistate Licensing System (NMLS).
You'll need to pass the NMLS Safe Mortgage Lending Exam and meet state-specific requirements. Licensing requirements can vary by state, so be sure to check with your state's licensing authority to confirm their specific requirements.
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To get started, you'll need to complete 20 hours of pre-licensing education and pass a national exam. You'll also need to submit your fingerprints, background check, and credit report.
Here's a summary of the licensing process:
By following these steps, you'll be well on your way to becoming a licensed reverse mortgage loan officer.
Cost and Benefits
A reverse mortgage can be a complex financial product, but understanding the costs and benefits can help you make an informed decision.
The cost of a reverse mortgage is typically higher than a traditional mortgage, with origination fees ranging from 2-5% of the loan amount.
You can borrow up to 80% of your home's value, but you won't have to pay any mortgage payments as long as you live in the home.
The interest on a reverse mortgage can add up quickly, potentially reducing the equity in your home over time.
However, the benefits of a reverse mortgage can be significant, especially for homeowners who are struggling to make ends meet.
With a reverse mortgage, you can access a portion of your home's equity to pay off debts, cover living expenses, or make home improvements.
The interest on a reverse mortgage is tax-deductible, which can help reduce your taxable income.
You must be at least 62 years old to qualify for a reverse mortgage, and you must occupy the home as your primary residence.
Learning and Growth
To become a successful reverse mortgage loan officer, it's essential to keep learning and improving your skills and knowledge.
You can stay updated on the latest trends and changes in the reverse mortgage industry by joining professional associations, such as the National Reverse Mortgage Lenders Association (NRMLA), and attending their conferences, webinars, and courses.
To maintain your expertise, you'll need to acquire ongoing continuing education (CE) credits, as required for the Certified Reverse Mortgage Professional (CRMP) certification.
Here are the eligibility requirements for the CRMP certification:
- Three years of experience originating reverse mortgages or working in the reverse mortgage industry
- Earning continuing education (CE) credits
- Paying an application fee
- Passing an exam and background test
- Attesting to a strict code of ethics
By following these steps, you'll be well on your way to staying current in the reverse mortgage industry and maintaining your CRMP certification.
Need New Strategy for More Clients
The Federal Reserve Mortgage Program has been around for 24 years, but a significant change has just been made. For the first time, Real Estate professionals can use it to sell homes to seniors.
This change is a big deal, especially since seniors have 3 trillion dollars in home equity, making them a significant segment of the economy. They're also the fastest growing segment.
The Reverse Mortgage for purchase program was approved as part of the Housing and Economic Recovery ACT of 2008, and it was created by the U.S. Department of Housing and Urban Development (HUD) in January 2009.
This program allows seniors to Upsize, Side-Size or Downsize from their current living situation without requirements like a minimum FICO score, standard Asset Verification, or monthly mortgage payments.
6 Keep Learning
To keep learning and growing in the field of reverse mortgage loan officers, it's essential to stay updated on the latest trends and changes in the industry. You can do this by joining professional associations like the National Reverse Mortgage Lenders Association (NRMLA) and attending their conferences, webinars, and courses.

To maintain certification as a Certified Reverse Mortgage Professional (CRMP), you'll need to acquire ongoing continuing education (CE) credits and agree to an additional background test every three years. This ensures you stay current with industry developments and best practices.
One way to gain experience and build your skills is to work with a lender focused on reverse mortgages. This allows you to gain specific knowledge and build a network within the industry. By doing so, you'll develop a deeper understanding of the loan process and client interaction.
Here are some key steps to keep learning:
- Stay updated on the latest trends and changes in the reverse mortgage industry.
- Join professional associations like the National Reverse Mortgage Lenders Association (NRMLA).
- Attend conferences, webinars, and courses to enhance your knowledge and skills.
- Acquire ongoing continuing education (CE) credits to maintain certification as a CRMP.
- Agree to an additional background test every three years to ensure you're meeting industry standards.
Code of Ethics and Responsibilities
As a Certified Reverse Mortgage Professional (CRMP), you have a responsibility to uphold a code of ethics that ensures the highest level of integrity and professionalism in your work.
Adhering to federal and state laws is a fundamental requirement of the CRMP code of ethics.
Protecting the confidentiality of client interactions and documents is crucial to building trust with your clients.

You must disclose any third-party financial interests in the reverse mortgage transaction to clients, ensuring transparency and fairness.
Avoiding conflicts of interest that compromise your professional judgment is essential to making decisions that benefit your clients.
Accurately representing your professional qualifications and only advising clients on services for which you are qualified is vital to maintaining credibility.
Here are the key responsibilities of a CRMP, summarized:
- Adhere to federal and state laws
- Protect client confidentiality
- Disclose third-party financial interests
- Avoid conflicts of interest
- Accurately represent professional qualifications
- Disclose risks and relevant information
- Derive fair and reasonable compensation
- Act with integrity and avoid dishonesty
- Interact with clients with professionalism and respect
- Maintain competency through continuing education
- Uphold the policies and procedures of the ICC
By following this code of ethics, you can build trust with your clients and establish yourself as a knowledgeable and trustworthy professional in the reverse mortgage industry.
Frequently Asked Questions
What is the 60% rule for reverse mortgage?
The 60% rule for reverse mortgage limits the amount borrowers can take in the first year to 60% of the principal limit or 10% of the loan amount, whichever is higher. This rule helps ensure borrowers don't withdraw too much cash upfront.
What is the 95% rule on a reverse mortgage?
To qualify for a reverse mortgage payoff, heirs must sell the home for at least 95% of its appraised value, with the remaining balance covered by mortgage insurance. This ensures a smooth payoff process for heirs.
What is the biggest problem with reverse mortgage?
The biggest problem with reverse mortgages is that they can quickly turn your home's equity into debt, as interest is added to your balance every month. This can leave you with a significant debt burden and a reduced equity stake in your home.
What are the 3 types of reverse mortgages?
There are three main types of reverse mortgages: federally insured, single-purpose, and proprietary. Each type offers different benefits and requirements, so it's essential to understand the differences to make an informed decision.
Sources
- https://www.investopedia.com/become-a-certified-reverse-mortgage-professional-5270277
- https://www.linkedin.com/advice/0/how-do-you-become-reverse-mortgage-loan-officer-skills-real-estate-eya0f
- https://www.notarycoach.com/crmsp
- https://hecmadvisorsgroup.com/reverse-purchase-program-seminar-ce-training/
- https://www.investopedia.com/certified-reverse-mortgage-professional-crmp-5268215
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