T/F: A HECM loan is a loan against the equity in a home - Answer✔️✔️-False; a HECM is
a long against the entire value of the house
What 3 factors determine the loan amount for a HECM? - Answer✔️✔️-1. Age
2. Expected Rate
3. Maximum Claim Amount (MCA)
The Maximum Claim Amount (MCA) on a HECM is defined as - Answer✔️✔️-the lesser
of the home value and HUD lending limit
The Principal Limit Factor is similar to the _______ in a forward mortgage. - Answer✔️✔️-
Loan-to-Value (LTV)
Would a 62 year old borrower receive less or more than someone who is 82? -
Answer✔️✔️-Less
What fee starts out at $2500 and cannot exceed $6000? - Answer✔️✔️-Mortgage
Origination Fee
What is the upfront mortgage insurance premium on a HECM loan? - Answer✔️✔️-2% of
the MCA
What are the three upfront costs that may be charged on a HECM loan? - Answer✔️✔️-1.
Origination Fee
2. Upfront MIP
3. Third-Party Costs
What is the term for the money that is reserved from the principal limit for a future
purpose? - Answer✔️✔️-Set-Aside
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