No matter how long you have been doing HECM counseling, the HUD HECM exam requires preparation. In order to pass the exam, you need to:
Know the material
Understand how the program works
Apply analytical thinking skills to the material
Read the questions carefully, and
Answer the question that is being asked.
Good reading comprehension is key. You will need to get a minimum score of 80 out of 100 in order to successfully complete the exam. You are not REQUIRED to have satisfied the HECM Counseling Roster HECM training requirement before taking the exam. However, unless you have previously HECM counseling experience, you are STRONGLY ENCOURAGED to do so.
After completing HECM training, you should plan on several weeks of study - at a minimum - to prepare for the exam. You will be taking the exam in a proctored test center where you will not have access to any notes, books or other materials. Start by reviewing the study materials below. Then take the sample exam which is available online. The sample exam is available at no cost. You are permitted to take the exam as many as three times. The sample exam will provide you with information on where to learn more about the topics for questions that you did not answer correctly.
HUD Handbook 4235.1 REV-1 Home Equity Conversion Mortgages, is the basic program handbook for the HECM program. The key sections are Chapters 1-9 and Appendixes 1, 7, 8, and 13. Remember - the Handbook was published in 1994, and some of the key program rules have changed since then, as explained in later HUD mortgagee letters, HECM regulations, and amendments to the HECM statute (see below). BE SURE TO READ THE MORTGAGEE LETTERS!
HUD Handbook 4330.1 Administration of Insured Mortgages, Chapter 13 addresses servicing requirements for HECMs
HUD HECM Mortgagee Letters are issued by HUD to make official changes in the HECM program. This is the way the program is updated and rules are clarified or modified. Reading and digesting the Mortgagee Letters is critical for a thorough understanding of how the HECM program works and how it is changing.
HO111/Introduction to Home Equity Conversion Mortgages Training Manual This is the material used in the 3-day introductory HECM counselor training offered through NeighborWorks America. It includes a wealth of information and references.
Technical Topics: These specialized briefings provide detailed information for HECM counselors on these key topics.
Social Security Administration Program Circular discusses how home equity conversion programs may affect public benefits