Reverse mortgages 3 - Study guides, Class notes & Summaries

HECM Exam questions and correct answers A reverse mortgage is... - ANSWERS a loan against the value of a home that provides cash advances to a borrower, requiring no repayment until a future time. A reverse mortgage is different from a home equity loan because - ANSWERS You do not have to make monthly repayments on a reverse mortgage A reverse mortgage must be repaid - ANSWERS When the last eligible borrower dies, sells, or permanently moves away The purpose of a reverse mortgage is mo...

what is a balloon mortgage? correct answers requires a borrower to make 1 large payment at the end of the loan term, which is typically 5-7 years high cost mortgages may not include a balloon payment correct answers ____________________ allows the borrower to request modification of the loan terms at maturity - borrower must qualify correct answers conditional refinance provision what is amortization? correct answers process of fully paying off a loan in regular payments over a specifi...

NMLS SAFE EXAM QUESTIONS AND ANSWERS | LATEST VERSION | 2024/2025 | GRADED A+ ________ are mortgages that do not fully amortize due to repayment terms of the loan. A. Reverse annuity mortgages. B. Balloon mortgages. C. Graduated payment mortgages. D. Home equity line of credit. B. Balloon mortgages ________ must be reported to borrowers on the truth in lending disclosure. A. Note rates. B. Finance charges C. Payment address D. Servicer's name B. Finance charges - 100% Finan...

Who are reverse mortgages popular products for and why? correct answers Popular for older homeowners who have equity in their homes and little or no income. What do reverse mortgages allow people to do? correct answers Allow older homeowners to use equity in their homes to meet expenses of living or to pay for home improvements Are borrowers required to repay a reverse mortgage? correct answers They are not required to repay as long as they continue to live in the home At what age are r...

HECM Exam questions and correct answers A reverse mortgage is... - ANSWERS a loan against the value of a home that provides cash advances to a borrower, requiring no repayment until a future time. A reverse mortgage is different from a home equity loan because - ANSWERS You do not have to make monthly repayments on a reverse mortgage A reverse mortgage must be repaid - ANSWERS When the last eligible borrower dies, sells, or permanently moves away The purpose of a reverse mortgage is mo...

HECM Practice exam questions and answers The HECM Saver was introduced as an option to lower the upfront cost of a HECM by reducing the upfront mortgage insurance premium to: a. 0. b. 0.01% of the Maximum Claim Amount. c. 1% of the Maximum Claim Amount. d. 1.25% of the Maximum Claim Amount. - ANSWERS b If repairs are required but can be completed after closing, the lender will create a repair set-aside in the amount of: a. 15% of the maximum claim amount. b. 100% of the actual cos...

HECM Practice exam questions and answers The HECM Saver was introduced as an option to lower the upfront cost of a HECM by reducing the upfront mortgage insurance premium to: a. 0. b. 0.01% of the Maximum Claim Amount. c. 1% of the Maximum Claim Amount. d. 1.25% of the Maximum Claim Amount. - ANSWERS b If repairs are required but can be completed after closing, the lender will create a repair set-aside in the amount of: a. 15% of the maximum claim amount. b. 100% of the actual cos...

HECM Exam questions and correct answers A reverse mortgage is... - ANSWERS a loan against the value of a home that provides cash advances to a borrower, requiring no repayment until a future time. A reverse mortgage is different from a home equity loan because - ANSWERS You do not have to make monthly repayments on a reverse mortgage A reverse mortgage must be repaid - ANSWERS When the last eligible borrower dies, sells, or permanently moves away The purpose of a reverse mortgage is mo...

NMLS TEST-Affinity Exam Questions with Complete Solutions Which regulation requires the lenders to "BE EQUAL" when extending credit to borrowers? - Answer-ECOA How old must a borrower be to qualify for a Reverse Mortgage? - Answer-62 years old Which regulation has the primary function of preventing Identity Theft? - Answer-FACT Act Which regulation has Section 114 Rules? - Answer-FACT Act Which regulation requires the creditor to verify the VALIDITY of any change of address rece...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...