Reverse mortgages Study guides, Study notes & Summaries

A market for the purchase and sale of existing mortgages designed to provide greater liquidity for selling mortgages is called the ________. secondary market The Federal agency established to restore Fannie Mae and Freddie Mac to a sound and solvent financial condition is _____. Federal Housing Finance Agency (FHFA) The ____ guarantee allows mortgage lenders to obtain a better price for their loan in the capital markets. Gov't. National Mortgage Association - Ginnie Mae T...

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...

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...

Borrower's Estimated Closing Statement correct answers A settlement statement is a document given to borrowers at closing that itemizes services and fees charged to the borrower by the lender or broker. It also contains a good faith estimate. A settlement statement is a document that summarizes the terms and conditions of a settlement, most commonly a loan agreement. A loan settlement statement provides full disclosure of a loan's terms, but most importantly it details all of the fees and c...

Reverse Mortgages Exam Questions and Answers 100% Pass Who are reverse mortgages popular products for and why? - Answer- Popular for older homeowners who have equity in their homes and little or no income. What do reverse mortgages allow people to do? - Answer- 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? - Answer- They are not required to repay as long as they continue to...

Reverse Mortgages Exam Questions and Answers 100% Pass Reverse Mortgages - Answer- A loan used by qualified homeowners age 62 or older, who have equity in their homes, but little to no income This loan allows the elderly to use the equity in their homes to meet the expenses of living, or tp help pay for home improvements T or F? Borrowers do not have to repay the loan as long as they continue to live in the house - Answer- TRUE What are the 3 types of Reverse Mortgages? - Answer- 1. Sing...

Reverse Mortgages Exam Questions and Answers 100% Pass Who are reverse mortgages popular products for and why? - Answer- Popular for older homeowners who have equity in their homes and little or no income. What do reverse mortgages allow people to do? - Answer- 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? - Answer- They are not required to repay as long as they continue to...

Reverse Mortgages Exam Questions and Answers 100% Pass Reverse Mortgages - Answer- A loan used by qualified homeowners age 62 or older, who have equity in their homes, but little to no income This loan allows the elderly to use the equity in their homes to meet the expenses of living, or tp help pay for home improvements T or F? Borrowers do not have to repay the loan as long as they continue to live in the house - Answer- TRUE What are the 3 types of Reverse Mortgages? - Answer- 1. Sing...

mortgage Broker - Answer- Functions as a middleman between the borrower and the lender, negotiating, selling or arranging loans to be delivered to large investors Mortgage Banker - Answer- Provide their own funds for the purpose of providing mortgage financing Correspondent Lender - Answer- Smaller in scale then mortgage bankers or brokers, these lenders typically extended loans with their own funds at their own risk Origination - Answer- The process of creating a new mortgage loan U...

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. - ANSWER-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 cost of repairs. c. 100% of the estimated cost of...