11/7/24, 3:40 PM 2024 Newest| HECM Exam|2024-2025 UPDATE|COMPREHENSIVE FREQUENTLY MOST TESTED QUESTIONS AND VERI…
2024 Newest| HECM Exam|2024-2025
UPDATE|COMPREHENSIVE FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED
ANSWERS|GET IT 100% ACCURATE!!
Practice questions for this set
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Owners of "remainder interest" or the one living in the house
Give this one a try later!
Reverse mortgages are typically If a property is held as a life
1 loans with _______debt and _________ estate, who has to agree in order
equity to allow a HECM to be approved?
T/F: The lender can set up the
What are three primary
3 counseling session on the client's 4
responsibilities of every borrower?
behalf.
, 11/7/24, 3:40 PM 2024 Newest| HECM Exam|2024-2025 UPDATE|COMPREHENSIVE FREQUENTLY MOST TESTED QUESTIONS AND VERI…
a loan against the value of a home that provides
A reverse mortgage is... cash 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
The "non-recourse" limit
than 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 charging a premium on all loans to create a reserve
lending is controlled by... fund.
When a HECM loan is The funds received plus loan fees and interest
repaid, the borrower compounded on the entire balance.
must pay back...
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