Hecm terminology - Study guides, Class notes & Summaries

Principal Limit - Correct Answer the maximum mortgage amount; equals the maximum claim amount times the principal limit factor. The maximum amount of money available from the loan at any given time, including the amount already borrowed, any set-asides, and any remaining available funds. Principal Limit Factor - Correct Answer the percent of the maximum claim amount that equals the principal limit; determined by the age of the youngest borrower and the expected average mortgage interest rate...

CR26 - Reg Z Reverse Mortgages Questions and answers 2023 (verified)B FB2B0E2D96FC4319B64C1E5F4E711CE5 Not answered. The correct answer is B. A, C, and D are incorrect because they are all advantages of a reverse mortgage. 1. While a reverse mortgage sounds like a great idea, they are not suitable for every borrower. There are several disadvantages to reverse mortgages. Which option is a disadvantage? A. Gives the borrower a stream of income B. Higher up front costs and higher interest C...

Principal Limit the maximum mortgage amount; equals the maximum claim amount times the principal limit factor. The maximum amount of money available from the loan at any given time, including the amount already borrowed, any set-asides, and any remaining available funds. Principal Limit Factor the percent of the maximum claim amount that equals the principal limit; determined by the age of the youngest borrower and the expected average mortgage interest rate 00:02 01:15...

HECM Terminology (Complete Guide)

HECM Terminology

A customer asks his mortgage broker for the name of a good title company. The broker has a list of several companies with whom she has done business with in the past. At what point, according to RESPA, must she give the customer an AfBA disclosure? If the referring party does not have an ownership or other beneficial interest, an Affiliated Business Arrangement (AfBA) disclosure is not required by RESPA. Which would NOT be considered a RESPA violation? A thing of minimal value used in t...