Hecm test 5 Questions and Answers|
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When the counselor performs emergency counseling and the client receives
the information packet during or after the counseling session, counselors
should wait 24 to 48 hours to contact the client so that the client has time to review
the materials and consider his/her options, and
· emphasize that the client may call the counselor at any time with additional
questions or concerns.
The counselor must record on the certificate The name of the counselor;
The name of the counseling agency;
The employer HCS (Housing Counseling System) ID of the counseling entity;
The date and signature of both the counselor and all prospective borrowers;
The date that that the client completed counseling;
The expiration date for the certificate provided by the counselor;
The type of counseling performed (face-to-face or telephone);
The duration of the counseling session(s); and
If applicable, the signature of the client's legal representative
talc general overview Although the counselor can provide a general overview of reverse
mortgage costs to a client, only a lender can provide the client with the actual costs of a specific
product. Only the client can weigh the costs and benefits of a reverse mortgage for himself or
herself to determine whether or not the loan would meets his or her needs and circumstances
talc rates loan cost The TALC rate is the annual average rate that includes all loan costs
and takes into account the future loan balance including all loan advances. The TALC is what the
interest rate would be if all loan costs had to be included in the interest rate
, TALC rates depend on The payment option and the timing and size of the loan advances
The loan term
Home appreciation or depreciation
TALC Rates: Payment Options and Timing of Loan Advances TALC rates are high at the
beginning of the loan because up-front costs are a large part of the total amount owed. Smaller
loan advances in the early years generate higher TALC rates
because up-front costs are a large percent of the loan balance. However, when these up-front
costs are spread out over more years, they become a smaller percent of the loan balance.
Larger loan advances create lower TALC rates because they reduce the impact of the up-front
costs
TALC Rates and Home Appreciation The loan balance reaches the principal limit over time
With higher appreciation of the home's value over time, the rising loan balance is less likely to
exceed the principal limit or property value
As the home value appreciates over time, TALC rates become higher
When refinancing an existing HECM When refinancing an existing HECM, the mortgage
insurance premium is reduced to cover only 2% of the difference between the original
maximum claim amount and the new maximum claim amount.
refinancing an existing HECM HECM Anti-Churning Disclosure- HUD form 92901 The total
cost of the HECM refinance
The increase in the principal limit as measured by the estimated initial principal limit on the
mortgage to be insured less the current principal limit on the HECM that is being refinanced The
lender must provide a best estimate of funds available to the borrower minus any closing costs
and other fees. This ensures that the borrower is provided with information to assist in
understanding the amount of new funding that will be available after refinancing the existing
HECM..
Latest Update
When the counselor performs emergency counseling and the client receives
the information packet during or after the counseling session, counselors
should wait 24 to 48 hours to contact the client so that the client has time to review
the materials and consider his/her options, and
· emphasize that the client may call the counselor at any time with additional
questions or concerns.
The counselor must record on the certificate The name of the counselor;
The name of the counseling agency;
The employer HCS (Housing Counseling System) ID of the counseling entity;
The date and signature of both the counselor and all prospective borrowers;
The date that that the client completed counseling;
The expiration date for the certificate provided by the counselor;
The type of counseling performed (face-to-face or telephone);
The duration of the counseling session(s); and
If applicable, the signature of the client's legal representative
talc general overview Although the counselor can provide a general overview of reverse
mortgage costs to a client, only a lender can provide the client with the actual costs of a specific
product. Only the client can weigh the costs and benefits of a reverse mortgage for himself or
herself to determine whether or not the loan would meets his or her needs and circumstances
talc rates loan cost The TALC rate is the annual average rate that includes all loan costs
and takes into account the future loan balance including all loan advances. The TALC is what the
interest rate would be if all loan costs had to be included in the interest rate
, TALC rates depend on The payment option and the timing and size of the loan advances
The loan term
Home appreciation or depreciation
TALC Rates: Payment Options and Timing of Loan Advances TALC rates are high at the
beginning of the loan because up-front costs are a large part of the total amount owed. Smaller
loan advances in the early years generate higher TALC rates
because up-front costs are a large percent of the loan balance. However, when these up-front
costs are spread out over more years, they become a smaller percent of the loan balance.
Larger loan advances create lower TALC rates because they reduce the impact of the up-front
costs
TALC Rates and Home Appreciation The loan balance reaches the principal limit over time
With higher appreciation of the home's value over time, the rising loan balance is less likely to
exceed the principal limit or property value
As the home value appreciates over time, TALC rates become higher
When refinancing an existing HECM When refinancing an existing HECM, the mortgage
insurance premium is reduced to cover only 2% of the difference between the original
maximum claim amount and the new maximum claim amount.
refinancing an existing HECM HECM Anti-Churning Disclosure- HUD form 92901 The total
cost of the HECM refinance
The increase in the principal limit as measured by the estimated initial principal limit on the
mortgage to be insured less the current principal limit on the HECM that is being refinanced The
lender must provide a best estimate of funds available to the borrower minus any closing costs
and other fees. This ensures that the borrower is provided with information to assist in
understanding the amount of new funding that will be available after refinancing the existing
HECM..
