REAL ESTATE TRAINERS, PRACTICE
EXAM #9 (2026/2027) UPDATE|EXAM
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
1.mAllmofmthemfollowingmaremtruemregardingmthemcounselormwhommeetsmwithmamprospectivemborro
wermformamreversemmortgage,mexcept:
A.mThemcounselormexplainsmthemcostmofmthemloanmandmthemfinancialmimplicationsmofmobtainingmit.
B.mThemcounselormismpaidmonlymifmthemborrowermgoesmthroughmwithmthemreversemmortgage.
C.mAtmthemendmofmthemsession,mthemcounselormwillmprovidemamrequiredmcertificationmofmcounseling
.
D.mThemcounselormwillmprovidemguidancemandmadvicemonmselectingmamlendermformthemreversemmort
gage.m-
mCORRECTmANSWERmB.mThemcounselormismunbiasedmandmindependent,mandmhis/hermcompensatio
nmismnotmdependentmonmanymdecisionmthemborrowermmakes.
2.mAllmofmthemfollowingmaremtruemregardingmthemamountmthatmcanmbemborrowedmonmamreversemmo
rtgage,mexcept:
A.mThemmoremthemhomemismworth,mthemmoremcashmcanmbemborrowed.
B.mThemyoungermthemborrowermis,mthemmoremhe/shemcanmborrowmbecausemhe/shemhasmlongermtom
paymitmback.
C.mThemmoremequitymthatmhasmbeenmbuiltmup,mthemmoremcashmcanmbemborrowed.
D.mThemlocationmofmthemhomemandmthemparticularmprogrammthatmhasmbeenmselectedmwillmdetermi
nemhowmmuchmmoneymcanmbemborrowed.m-
mCORRECTmANSWERmB.mTypically,mthemprincipalmlimitmismhighermformanmoldermborrowermbecausemt
hemshortermthemlifemexpectancy,mthemquickermthemloanmcanmbemrepaid.
,3.mWhichmofmthemfollowingmismthemmostmcommonmusemofmfundsmfrommamreversemmortgage:
A.mTomsupplementmamfixedmretirementmincome.
B.mTomcovermcostsmofmhealthcare.
C.mTommakemhomemimprovements.
D.mAllmofmthemabovemaremcommonmusesmofmproceedsmfrommreversemmortgages.m-
mCORRECTmANSWERmD.mThesemaremthemcommonmusesmofmthemproceeds,mbutmtheymcanmbemusedmf
ormvirtuallymanything.
4.mWhenmcanmtheminterestmthatmamlendermchargesmformamreversemmortgagembemdeductedmonmambor
rower'smincomemtaxmreturn?
A.mAtmtheminceptionmofmthemloan.
B.mAftermthemfirstmcompletemyearmofmthemloanmterm.
C.mWhenmthemloanmprincipalmandminterestmaremrepaid.
D.mInterestmismnotmdeductiblemonmamreversemmortgage.m-
mCORRECTmANSWERmC.mYes,matmthemendmofmthemtermmonmamreversemmortgage.
5.mWhenmismthemtypicalmreversemmortgagemduemandmpayable?
A.mWhenmthemborrowermdies.
B.mWhenmthemborrowermsellsmthemhouse.
C.mWhenmthemborrowermceasesmtomliveminmthemhousemform12mconsecutivemmonths.
D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,mthesemaremtypicallymthemoccasionsmwhenmthemborrowermmustmrepaym
themloan.
6.mPayoffmofmamreversemmortgagemincludesmwhichmofmthemfollowing:
, A.mThemloanmamount.
B.mAnymunpaidminsurancemthatmismdue.
C.mAnymoutstandingmfeesmasmstipulatedminmthemloan.
D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,mallmofmthesemaremtombemrepaidmasmstipulatedminmthemloan.mHowever,m
mostmclosingmcostsmandmfeesmarempaidmupfrontmasmthemloanmismestablished.
7.mAllmofmthemfollowingmaremtruemregardingmamreversemmortgage,mexcept:
A.mAmlendermcanmforcemamborrowermoutmofmthemhomemonlymifmthemborrowermfailsmtommakemthreemc
onsecutivempayments.
B.mAmlendermcannotmsellmamhomemsubjectmtomamreversemmortgagemwhenmthemloanmbecomesmdue.
C.mInmthemeventmofmdeath,mthemlendermusuallymallowsm12mmonthsmformpayment.
D.mWhenmpaymentmismdue,mifmthemhomemismnotmsoldmormdeededmtomthemlender,mthemlendermcanmfo
reclose.m-mCORRECTmANSWERmA.mThemborrowermismnotmmakingmpayments,mremember?
8.mInmamreversemmortgage,mundermwhichmofmthemfollowingmcircumstancesmcouldmthemlendermrequir
emimmediatempayment:
A.mAmgovernmentmentitymclaimsmeminentmdomainmovermthemproperty.
B.mThemhomeownermfailsmtompaymthempropertymtaxesmonmthemhome.
C.mThemhomeownermfailsmtomkeepmthempropertyminsuredmwithmhazardminsurance.
D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,manymofmthesemsituationsmwouldmallowmthemlendermtomdemandmimme
diatempayment.
EXAM #9 (2026/2027) UPDATE|EXAM
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
1.mAllmofmthemfollowingmaremtruemregardingmthemcounselormwhommeetsmwithmamprospectivemborro
wermformamreversemmortgage,mexcept:
A.mThemcounselormexplainsmthemcostmofmthemloanmandmthemfinancialmimplicationsmofmobtainingmit.
B.mThemcounselormismpaidmonlymifmthemborrowermgoesmthroughmwithmthemreversemmortgage.
C.mAtmthemendmofmthemsession,mthemcounselormwillmprovidemamrequiredmcertificationmofmcounseling
.
D.mThemcounselormwillmprovidemguidancemandmadvicemonmselectingmamlendermformthemreversemmort
gage.m-
mCORRECTmANSWERmB.mThemcounselormismunbiasedmandmindependent,mandmhis/hermcompensatio
nmismnotmdependentmonmanymdecisionmthemborrowermmakes.
2.mAllmofmthemfollowingmaremtruemregardingmthemamountmthatmcanmbemborrowedmonmamreversemmo
rtgage,mexcept:
A.mThemmoremthemhomemismworth,mthemmoremcashmcanmbemborrowed.
B.mThemyoungermthemborrowermis,mthemmoremhe/shemcanmborrowmbecausemhe/shemhasmlongermtom
paymitmback.
C.mThemmoremequitymthatmhasmbeenmbuiltmup,mthemmoremcashmcanmbemborrowed.
D.mThemlocationmofmthemhomemandmthemparticularmprogrammthatmhasmbeenmselectedmwillmdetermi
nemhowmmuchmmoneymcanmbemborrowed.m-
mCORRECTmANSWERmB.mTypically,mthemprincipalmlimitmismhighermformanmoldermborrowermbecausemt
hemshortermthemlifemexpectancy,mthemquickermthemloanmcanmbemrepaid.
,3.mWhichmofmthemfollowingmismthemmostmcommonmusemofmfundsmfrommamreversemmortgage:
A.mTomsupplementmamfixedmretirementmincome.
B.mTomcovermcostsmofmhealthcare.
C.mTommakemhomemimprovements.
D.mAllmofmthemabovemaremcommonmusesmofmproceedsmfrommreversemmortgages.m-
mCORRECTmANSWERmD.mThesemaremthemcommonmusesmofmthemproceeds,mbutmtheymcanmbemusedmf
ormvirtuallymanything.
4.mWhenmcanmtheminterestmthatmamlendermchargesmformamreversemmortgagembemdeductedmonmambor
rower'smincomemtaxmreturn?
A.mAtmtheminceptionmofmthemloan.
B.mAftermthemfirstmcompletemyearmofmthemloanmterm.
C.mWhenmthemloanmprincipalmandminterestmaremrepaid.
D.mInterestmismnotmdeductiblemonmamreversemmortgage.m-
mCORRECTmANSWERmC.mYes,matmthemendmofmthemtermmonmamreversemmortgage.
5.mWhenmismthemtypicalmreversemmortgagemduemandmpayable?
A.mWhenmthemborrowermdies.
B.mWhenmthemborrowermsellsmthemhouse.
C.mWhenmthemborrowermceasesmtomliveminmthemhousemform12mconsecutivemmonths.
D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,mthesemaremtypicallymthemoccasionsmwhenmthemborrowermmustmrepaym
themloan.
6.mPayoffmofmamreversemmortgagemincludesmwhichmofmthemfollowing:
, A.mThemloanmamount.
B.mAnymunpaidminsurancemthatmismdue.
C.mAnymoutstandingmfeesmasmstipulatedminmthemloan.
D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,mallmofmthesemaremtombemrepaidmasmstipulatedminmthemloan.mHowever,m
mostmclosingmcostsmandmfeesmarempaidmupfrontmasmthemloanmismestablished.
7.mAllmofmthemfollowingmaremtruemregardingmamreversemmortgage,mexcept:
A.mAmlendermcanmforcemamborrowermoutmofmthemhomemonlymifmthemborrowermfailsmtommakemthreemc
onsecutivempayments.
B.mAmlendermcannotmsellmamhomemsubjectmtomamreversemmortgagemwhenmthemloanmbecomesmdue.
C.mInmthemeventmofmdeath,mthemlendermusuallymallowsm12mmonthsmformpayment.
D.mWhenmpaymentmismdue,mifmthemhomemismnotmsoldmormdeededmtomthemlender,mthemlendermcanmfo
reclose.m-mCORRECTmANSWERmA.mThemborrowermismnotmmakingmpayments,mremember?
8.mInmamreversemmortgage,mundermwhichmofmthemfollowingmcircumstancesmcouldmthemlendermrequir
emimmediatempayment:
A.mAmgovernmentmentitymclaimsmeminentmdomainmovermthemproperty.
B.mThemhomeownermfailsmtompaymthempropertymtaxesmonmthemhome.
C.mThemhomeownermfailsmtomkeepmthempropertyminsuredmwithmhazardminsurance.
D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,manymofmthesemsituationsmwouldmallowmthemlendermtomdemandmimme
diatempayment.
