Hecm Product

To draw upon the equity in his/her home and they must repay it in monthly installments.

To draw upon the equity in his/her home without having to sell and without having to make any mortgage payments until the loan matures.

To draw upon the equity in his/her home to purchase investment or rental properties.

62 years of age.

50 years of age.

75 years of age.

Release of equity from primary residence.

Refinance of existing reverse mortgage or equity release product.

Refinance of existing forward mortgage or home equity product.

All of the above.

No Minum home Value All applicants must occupy the home as their primary resident New or existing properites must be 100% complete

The minum home value is 85,000 Only 1 applicant must occupy the home as their primary residence New properties must be 100% completed at time of closing

No minimum home value Applicants may occupy their homes as a secondary residence New or existing properites must be 100% complete

2nd lien position at the time of closing

1st lien position at the time of closing

None of the above

The available credit line and represents the amount of money that can be drawn from the line of credit at any given time.

The withdrawn amount (which may include the payoff of property liens, any financed closing costs and the monthly servicing fee), plus accrued interest.

The total credit line and represents the amount of equity initially available to the applicant.

None of the above.

The lesser of the appraised value or the FHA National Lending Limit.

The maximum amount of equity an applicant can receive from the reverse mortgage.

None of the above

The maximum amount of equity an applicant can receive from the reverse mortgage.

The available credit line.

The amount of equity initially available to the applicant.

Any initial payments on behalf of, or cash payments made to the applicant.

Any costs financed into the loan, such as closing costs, origination fee or upfront mortgage insurance premium (MIP).

Any cash payments made to the applicant.

All of the above.

True

False

True

False

True

False

Applicants have a three-business day right to rescind for all non-purchase funds.

Applicants have a five-business day right to rescind for all non-purchase funds.

Applicants does not have the right to rescind for all non-purchase funds.

The life tenant must be the applicant.

The life tenant and the remainder person(s) are required to sign the security instruments at closing

Only the life tenant (applicant) will sign all other loan documents

All of the above.

True

False