T/F: A HECM loan is a loan against the equity in a home - Answer✔️✔️-False; a HECM is
a long against the entire value of the house
What 3 factors determine the loan amount for a HECM? - Answer✔️✔️-1. Age
2. Expected Rate
3. Maximum Claim Amount (MCA)
The Maximum Claim Amount (MCA) on a HECM is defined as - Answer✔️✔️-the lesser
of the home value and HUD lending limit
The Principal Limit Factor is similar to the _______ in a forward mortgage. - Answer✔️✔️-
Loan-to-Value (LTV)
Would a 62 year old borrower receive less or more than someone who is 82? -
Answer✔️✔️-Less
What fee starts out at $2500 and cannot exceed $6000? - Answer✔️✔️-Mortgage
Origination Fee
What is the upfront mortgage insurance premium on a HECM loan? - Answer✔️✔️-2% of
the MCA
What are the three upfront costs that may be charged on a HECM loan? - Answer✔️✔️-1.
Origination Fee
2. Upfront MIP
3. Third-Party Costs
What is the term for the money that is reserved from the principal limit for a future
purpose? - Answer✔️✔️-Set-Aside
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EmillyCharlotte. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.