HECM EXAM AND PRACTICE EXAM 2024-2025
ACTUAL EXAM 150 QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|AGRADE||BRAND NEW!!
Terms in this set (175)
a loan against the value of a home that provides cash
A reverse mortgage is... advances to a borrower, requiring no repayment until
a future time.
A reverse mortgage is You do not have to make monthly repayments on a
different from a home reverse mortgage
equity loan because
A reverse mortgage must When the last eligible borrower dies, sells, or
be repaid permanently moves away
The purpose of a reverse To generate cash
mortgage is most often
Reverse mortgages are Rising debt and falling equity
typically loans with
_______debt and _________
equity
What happens when a The borrower or their heirs repay the loan if able
reverse mortgage
becomes due and
payable?
The borrower cannot be required to repay more than
The "non-recourse" limit
the value of the home. This is where mortgage
on a reverse mortgage
insurance comes in. Also, the borrower's estate and
means...
heirs are protected against deficiency judgments.
, It protects the lenders against loan losses, protects
What is the purpose of
the borrowers with a non-recourse limit, and lets the
reverse mortgage
borrowers remain in their homes as long as they
insurance?
choose.
The risk of loan losses in controlling the amount of loan advances and
reverse mortgage lending charging a premium on all loans to create a reserve
is controlled by... fund.
When a HECM loan is The funds received plus loan fees and interest
repaid, the borrower must compounded on the entire balance.
pay back...
What happens when an The loan balance grows faster, as well as as the
adjustable interest rate on creditline.
a reverse mortgage goes
up?
1. Age 62+
What are the 3 eligibility
2. Owns the home
requirements for HECM
3. Live in the home as principal residence (~6 months
borrowers?
out of the year)
If a property is held as a Owners of "remainder interest" or the one living in the
life estate, who has to house
agree in order to allow a
HECM to be approved?
When a property is placed Grantor, beneficiaries, and trustee
in a trust, the three "roles"
are the...
If a property is owned by Current beneficiaries
a trust, who has to be at
least 62 years old in order
for the property to be
HECM-eligible?
T/F: A HECM loan is a loan False; a HECM is a long against the entire value of the
against the equity in a house
home
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 TheAlphanurse. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
