Understanding HECM Reverse Mortgages, Exams of Advanced Education

Download Understanding HECM Reverse Mortgages and more Exams Advanced Education in PDF only on Docsity! HECM Reverse MLO Exam With 100% Correct Answers 2024 HECM - Correct Answer-Home Equity Conversion Mortgage *this is under the FHA* Reverse mortgage - Correct Answer--an umbrella term that can refer to multiple things 1) FHA / HECM (we are only talking about the FHAHECM) 2) Private companies Details about the FHA HECM program - Correct Answer--Its an FHA Program -allows for a one-time single-advance transaction. What is a single-advance transaction? - Correct Answer--can be setting up a LOC (line of credit) Who qualifies? - Correct Answer-*all people on the note and title MUST be age 62 or older. -other people can live there but they cannot be on the note or title -it must stay the primary residence (where you live the majority of the year) What is HECM? - Correct Answer--Collateral-only loan --- No ATR required -this is the only time that a collateral only loan is ok. -NO MIN. PAYMENT DUE EVER What is required to qualify for this program? - Correct Answer--HUD counseling* -required before you can even apply -counselor has to sign off that the borrower is understanding and in sound mind in order to go through with it. (prevent elder abuse) When does this program end? - Correct Answer-1) when you have been gone for a full year; a full year that it has not been your primary residence. 2) dead --> 1 year freeze