Reverse mortgages 3 - Study guides, Class notes & Summaries

Recourses of foreclosure - borrower can come back through - equity of redemption -statutory The possibility that the actual outcome will vary from what was expected when the asset was purchased. - Risk fixed amount of money paid or received at the end of every period - Ordinary annuity future cash inflow or outflow occurring only once - lump sum payment What are the four time Value of money operations - Compounding Operations 1. Future value of a lump sum 2. Future value of an annuity ...

NMLS Safe Test Mortgage Licensing Practice Exam Q's (from 2019 NMLS 20 Hour Safe Exam for Loan Originator) with Complete SolutionsNMLS Safe Test Mortgage Licensing Practice Exam Q's (from 2019 NMLS 20 Hour Safe Exam for Loan Originator) with Complete SolutionsNMLS Safe Test Mortgage Licensing Practice Exam Q's (from 2019 NMLS 20 Hour Safe Exam for Loan Originator) with Complete SolutionsWhich federal law requires that the Loan Estimate be provided to the borrower within three business days of...

Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? - TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? - Loan flipping or churning After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied, residential refinance? - After 3 business-day rescission period What is the adjustab...

HECM Exam questions and correct answers A reverse mortgage is... - ANSWERS a loan against the value of a home that provides cash advances to a borrower, requiring no repayment until a future time. A reverse mortgage is different from a home equity loan because - ANSWERS You do not have to make monthly repayments on a reverse mortgage A reverse mortgage must be repaid - ANSWERS When the last eligible borrower dies, sells, or permanently moves away The purpose of a reverse mortgage is mo...

Risky loan features - - negative amortization - interest only payment feature - loan terms in excess of 30 years - prepayment penalties - balloon mortgages A _________ loan is one that has met the ATR requirements, and meets some additional rules that focus on prohibiting risky loan features. - QM (qualifies mortgage) for all QM loans, the points and fees charged to the borrower may not exceed ____% of the total loan amount, unless the loan amount is $____________ or less - 3, 100,000 w...

SAFE Mortgage Loan Originator Test - National Component with Uniform State Content Exam Questions With Verified Answers What does UST stand for? - answerUniform State Test Who does the CFPB protect? - answerThe Consumer Financial Protection Bureau protects consumers in the financial marketplace. What does the CFPB do? - answerCFPB is now in charge of implementing and enforcing most of the provisions of federal lending laws that relate to protecting consumers while they are shopping for,...

Reverse Mortgages Exam Questions and Answers 100% Pass Who are reverse mortgages popular products for and why? - Answer- Popular for older homeowners who have equity in their homes and little or no income. What do reverse mortgages allow people to do? - Answer- Allow older homeowners to use equity in their homes to meet expenses of living or to pay for home improvements Are borrowers required to repay a reverse mortgage? - Answer- They are not required to repay as long as they continue to...

HECM Counseling Certification Exam Questions and Answers 100% Pass Non-recourse - Answer- Borrower has no obligation to pay back more than the value of the home Proprietary Reverse Mortgage - Answer- A loan offered by a particular lender, not federally insured. Generally target homeowners with high home values How is loss risk controlled? - Answer- Relating the total amount of the loan advances to the life expectancy of borrower (age), value of home, and cost of loan Federally-Insured Re...

what is RESPA Answer Real Estate Settlement Procedures Act; provides consumer protection for loans on residential properties (1-4 units) RESPA: Regulation ? Answer X; primarily involved with the disclosure of closing costs and the prevention of kickbacks, which may raise the amount of closing costs to the consumer RESPA = 4 pre settlement disclosures Answer ***sent 3 business days after borrower signs loan application** 1. Special info booklet; 2. Good Faith Estimate aka GFE of settleme...

Reverse Mortgages Exam Questions and Answers 100% Pass Reverse Mortgages - Answer- A loan used by qualified homeowners age 62 or older, who have equity in their homes, but little to no income This loan allows the elderly to use the equity in their homes to meet the expenses of living, or tp help pay for home improvements T or F? Borrowers do not have to repay the loan as long as they continue to live in the house - Answer- TRUE What are the 3 types of Reverse Mortgages? - Answer- 1. Sing...