HECM EXAM AND PRACTICE EXAM 2023-2024 ACTUAL EXAM 250 QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS) |AGRADE||BRAND NEW!!

HECM EXAM AND PRACTICE EXAM 2023-2024

ACTUAL EXAM 250 QUESTIONS AND CORRECT

DETAILED ANSWERS (100% VERIFIED ANSWERS)

|AGRADE||BRAND NEW!!

HECM ACTUAL EXAM

All of the following property types are eligible to receive HECM loans provided

they meet the necessary HUD requirements EXCEPT:

A. Manufactured Homes

B. Condominium Units

C. Properties located in PUDs

D. Cooperative Housing Units

E. All are eligible property types - ANSWER- D

T/F All borrowers are expected to maintain Hazard (Homeowners) Insurance and

Flood Insurance under HECM guidelines. - ANSWER- False

How long does a borrower have to complete required repairs after closing?

A. 3 months

B. 6 months

C. 9 months

D. 12 months

E. Time period specified in the loan agreement - ANSWER- E

T/F Required repairs that are estimated to cost less than 15% of the maximum

claim amount must be completed before closing. - ANSWER- False

The repair administration fee is paid to_____.

A. The lender

B. The borrower after repairs are completed

C. The HUD inspector

D. The appraiser - ANSWER- A

The lending limit is $625,500, and a borrower has a principal limit of $420,000 and

appraised value is $700,000. What is the max claim amount?

A. $625,500

B. $420,000

C. $700,000

D. Not enough information has been provided to answer the question - ANSWERB

T/F Unlike a traditional mortgage, the closing costs of a HECM are taken out of

the loan proceeds. - ANSWER- True

T/F The borrower does not pay any interest on any of the closing costs that were

taken out of the loan proceeds. - ANSWER- False

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 - ANSWER- B

Monthly adjustable rates can't adjust by more than___.

A. Two percentage points per year

B.Five percentage points per year

C. Two percentage points over the life of the loan

D. Ten percentage points over the life of the loan - ANSWER- D

Borrowers with delinquent federal debt are not eligible for a HECM___.

A. Ever

B. Until the debt is satisfied

C. For 2 years after the debt is satisfied

D. For 7 years after the debt is satisfied - ANSWER- B

A lender must screen all borrowers on which of the following:

A. LDP

B. GSA

C. CAIVRS

D. All of the above - ANSWER- D

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 - ANSWER- B

T/F Only one HECM borrower must be living in the home in order for the HECM

loan to close. - ANSWER- True

When is a borrower able to close in the name of a Living Trust for a HECM?

A. When all the beneficiaries of the trust are eligible HECM borrowers

B. When all the trustees of the trust are eligible HECM borrowers

C. Both a and b above

D. Can't be done - ANSWER- A

T/F A Durable Power of Attorney is not permitted on HECM loans; only a court

appointed Guardianship. - ANSWER- False

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 - ANSWER- A

T/F Generally, unsecured debts other than delinquent Federal debts (i.e. credit card

debt), regardless of their status should not impact negatively on the borrower's

eligibility. - ANSWER- True

T/F The counseling certificate is generated by each counseling agency on their

own letterhead. - ANSWER- False

What is a mortgagee letter?