HECM EXAM 2025
To Qualify dor HECM - CORRECT ANSWER -Borrower no cash out
Owner occupied
Sixty two
Sixty two
To Complete HECM Loan - CORRECT ANSWER -Borrower Council...
All Liens Paid Off...
Complete Conditions Deemed by underwriter
How does FHA Benefit borrower - CORRECT ANSWER -Stabilizes and insures loan
FHA Non Recourse - CORRECT ANSWER -Home is only asset used to pay loan...
Heirs do not inherit unwanted debt...
Borrower can't owe more than house appraisal
If bank defaults gov't guarantees
MIP - CORRECT ANSWER -Charged monthly and at closing
Minim FICO SCORE for HECM - CORRECT ANSWER -None
Purpose of HECM - CORRECT ANSWER -Refinance / Purchase
, Maturity Events - CORRECT ANSWER -1. Sale of property
2. Filing a bankruptcy
3. Death of the last surviving borrower or eligible non-borrowing spouse is
4. Being physically away from the property for 12 consecutive months 5. Change in title
6. Failing to a pulled any of the borrowers responsibilities
Borrower Responsibilities - CORRECT ANSWER -1. Pay property tax
2. Maintain homeowners insurance on the property
3. Make any repairs necessary in accordance with Repair Rider
Maintain property
When Heirs take possession - CORRECT ANSWER -Estate has three months from the date
of borrowers death to pay H ECM loan balance if they plan to keep the home usually
done through refinancing
Estate has six months from the date of death to pay H ECM loan balance through the sale
of the property
Request an Extension - CORRECT ANSWER -If unable to sell within six months and can
prove bona fide effort: showing listing below current market value, if they can request an
extension from servicer. 2 to 3 and get extensions are common. Foreclosure must be
started within 12 months
Non-Borrowing Spouse - CORRECT ANSWER -Definition determined by the law of the
state in which the spouse and borrow reside. Person who is a spouse and who also is not
a borrower. Non-borrowing spouse cannot be on title of the home and cannot be on the
loans
NBS - CORRECT ANSWER -Non-Borrowing Spouse
To Qualify dor HECM - CORRECT ANSWER -Borrower no cash out
Owner occupied
Sixty two
Sixty two
To Complete HECM Loan - CORRECT ANSWER -Borrower Council...
All Liens Paid Off...
Complete Conditions Deemed by underwriter
How does FHA Benefit borrower - CORRECT ANSWER -Stabilizes and insures loan
FHA Non Recourse - CORRECT ANSWER -Home is only asset used to pay loan...
Heirs do not inherit unwanted debt...
Borrower can't owe more than house appraisal
If bank defaults gov't guarantees
MIP - CORRECT ANSWER -Charged monthly and at closing
Minim FICO SCORE for HECM - CORRECT ANSWER -None
Purpose of HECM - CORRECT ANSWER -Refinance / Purchase
, Maturity Events - CORRECT ANSWER -1. Sale of property
2. Filing a bankruptcy
3. Death of the last surviving borrower or eligible non-borrowing spouse is
4. Being physically away from the property for 12 consecutive months 5. Change in title
6. Failing to a pulled any of the borrowers responsibilities
Borrower Responsibilities - CORRECT ANSWER -1. Pay property tax
2. Maintain homeowners insurance on the property
3. Make any repairs necessary in accordance with Repair Rider
Maintain property
When Heirs take possession - CORRECT ANSWER -Estate has three months from the date
of borrowers death to pay H ECM loan balance if they plan to keep the home usually
done through refinancing
Estate has six months from the date of death to pay H ECM loan balance through the sale
of the property
Request an Extension - CORRECT ANSWER -If unable to sell within six months and can
prove bona fide effort: showing listing below current market value, if they can request an
extension from servicer. 2 to 3 and get extensions are common. Foreclosure must be
started within 12 months
Non-Borrowing Spouse - CORRECT ANSWER -Definition determined by the law of the
state in which the spouse and borrow reside. Person who is a spouse and who also is not
a borrower. Non-borrowing spouse cannot be on title of the home and cannot be on the
loans
NBS - CORRECT ANSWER -Non-Borrowing Spouse
