HECM Test Exam Questions And Revised Correct Answers 2024

HECM Test Exam Questions And Revised Correct Answers 2024 A borrower got her HECM loan many years ago when the lending limit for her county was $600,000. Her home is appraised for $800,000. What is the most her repayment of the loan could be? A. $600,000 B. $800,000 C. 75% of appraised value D. Net proceeds from selling the home - ANSWERS D A borrower has a $200,000 home value. What is the likely upfront cost added to the loan balance at closing? (Revisit. Where is the formula?) A. $7,000 B. $10,000 C. $15,000 D. $20,000 - ANSWERS B A borrower must be what age before signing a loan application in order to receive a HECM? A. 60 B. 61 C. 62 D. 63 - ANSWERS B A borrower on an adjustable rate product must be notified of the first rate change within___. A. 25 days of the B. 30 days of the change C. One calendar month D. No notice required - ANSWERS A A borrower's appraised value is $750,000. What is the required title insurance amount? A. $750,000 B. $525,000 C. $625,500 D. Not enough information to answer the question - ANSWERS A A Counseling Agency's failure to follow all basic requirements required by HUD could result in which of the following: A. Termination of agency's HUD approval B. Suspension of agency's HUD approval C. Forfeiture of remaining federal grant funds D. Fines and or imprisonment E. a , b , and c F. all of the above - ANSWERS E. Termination of agency's HUD approval Suspension of agency's HUD approval Forfeiture of remaining federal grant funds A credit line grows with the___. A. Initial interest rate B. Expected interest rate C. Current interest rate D. A credit line will not grow - ANSWERS C A dwelling is allowed to have up to how many units in order to be eligible for a HECM? A. 1 unit B. 2 units C. 3 units D. 4 units - ANSWERS D A good source for both borrowers and agencies for additional information on available resources for elderly homeowners is known as A. The Area Agency on Aging B. AARP C. D. Consumer Credit Counseling Services (CCCS) - ANSWERS A A HECM counselor must discuss all of the following with a potential borrower EXCEPT: A. Financial implications B. Necessary credit qualifications C. Alternatives to a HECM D. Consequences to receiving a HECM - ANSWERS B A lender must screen all borrowers on which of the following: A. LDP B. GSA C. CAIVRS D. All of the above - ANSWERS D A lender will use a Certificate of Occupancy ___. A. To verify that a property is habitable B. To verify that a borrower is using the property as a primary residence C. In lieu of an appraisal D. In lieu of a chain of title - ANSWERS A A single borrower receives SSI and no other income. What amount from the HECM can be retained past the end of the calendar month without affected their benefit? A. $0 B. $2,000 C. $3,000 D. $6,000 - ANSWERS B A TALC disclosure must show___. A. 120% of life expectancy B. 140% of life expectancy C. 150% of life expectancy D. 180% of life expectancy - ANSWERS B A tenure plan is more flexible than a fixed rate annuity because___. A. It requires no repayment until the borrower dies, sells the home, or moves away B. Payments continue as long as the borrower is in the home C. Monthly loan advances are not taxable D. It can be converted into a line of credit at any time - ANSWERS D A woman sells her home to her son, and the son has given her a life estate in the property. This means___. A. She is ineligible for a reverse mortgage B. She can get a reverse mortgage without the consent of her son C. She will need a durable POA executed D. She can live in the home as long as she wants - ANSWERS D All are true of entities eligible to provide Reverse Mortgage Counseling EXCEPT: A.An agency must have an affiliating lending ins