HECM EXAM AND PRACTICE EXAM 2024-2025
ACTUAL EXAM 150 QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
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Terms in this set (175)
Are condo fees and HOA No, those have to be paid by the borrower out of
dues included in LESAs? their own funds.
At closing, how much can Up to 150% of the MCA.
the liens be recorded for?
Can a borrower have Yes, but there has to be an established payment
outstanding federal debt agreement with payments being made
at the time of closing?
Can a lender call and see They are NOT permitted to, but do so. As a counseling
if the borrower has set up agency, we should refer them back to the borrower to
an appointment with the answer their question. We cannot confirm nor deny if
counseling agency? the client has been scheduled.
A Deferred Payment Loan Subordinate
(DPL) for home repairs
can be combined with a
HECM only if the lending
agency for the DPL agrees
to ______________ its lien.
, 1. First = establishes the borrower's pledge of the
property as collateral for the loan, and the borrower's
promise to pay
First Mortgage vs. Second
2. Second - FHA holds the second position in case
Mortgage with HECM
lender fails or assigns loan to HUD to take over
payments to borrower. NOT required for fiexd rate
loans.
1. Directly to a bank account
How can funds be
2. By check in the mail
disbursed?
3. To a third-party if mutually agreed
The lender will disburse a certain amount of money
from the set aside directly to the borrower on a semi-
How do the funds from a
annual basis, with the intent that the money will be
Partially Funded Life
used to pay property charges. Only available for
Expectancy Set Aside get
adjustable-rate loans because borrowers with fixed-
disbursed?
rate loans do not have access to funds after the initial
disbursement.
How long can a borrower 12 consecutive months
be away at a healthcare
facility to still be
considered an occupant
within their home?
How long does the 5 business days from receipt of request.
servicer have to deposit
funds after the borrower
requests a draw from the
creditline?
How long do tenure As long as at least one eligible borrower lives in the
payments last? home
How long is the HECM 180 days
counseling certificate
good for?
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