Reverse Mortgage Quiz - Have fun with this new quiz! 1) What is the minimum age allowed for a reverse mortgage? borrower?
a) 55
b) 60
c) 62
d) 65
2) What does HECM stand for?
a) Home Equity Conversion Mortgage
b) Housing for Elder Community Mortgage
c) Housing Equality Cooperative Mortgage
d) Help for Elders Community Mortgage
3) True/False - Reverse Mortgage proceeds are considered taxable income.
4) Loan to Value ratios on Reverse Mortgages are based upon these three factors:
a) Home Value, FHA Lending Limit, Age of oldest borrower.
b) Home Value or FHA Lending Limit (whichever is least), current expected interest rate, and the age of youngest borrower.
c) Home Value or FHA Lending Limit (whichever is less), Average age of borrowers, current expected interest rate.
d) Home Value, current expected interest rate, Age of Youngest borrower.
5) HECM Reverse Mortgage Loans are insured by:
a) They are not insured.
b) VA
c) Social Security
d) FHA
6) True/False - You cannot get a reverse mortgage on investment property.
7) True/False - Reverse Mortgages may be used as purchase money loans on a primary residence.
8) True/False - Proceeds from a reverse mortgage may be used to buy a vacation home.
9) Once you have a reverse mortgage and you are taking monthly payments - if you wish to change the method of payment you must:
a) Refinance the loan
b) Request a Change and Recalculation and pay .01% of the current loan balance.
c) Request a Change and Recalculation and pay $20
d) You cannot change the distribution method of a reverse once it’s in place.
10) Reverse Mortgage Counseling is
a) Optional, but recommended and provided by HUD Approved HECM counselors
b)Mandatory, provided by HUD Approved HECM counselors and must be completed prior to closing the reverse mortgage loan.
c) Mandatory and provided free of charge by the lender or originator.
d) Mandatory, provided by HUD Approved HECM counselors, and must be completed prior applying for a reverse mortgage.
Answers: 1=C, 2=A, 3=False, 4=B, 5=D, 6=True, 7=True, 8=True, 9=C, 10=D
Deborah Nance
Your Local Southern California Reverse Mortgage Professional
Thanks for the great information - simple, concise and helpful