What is the primary purpose of a financial assessment in a reverse mortgage application?
Correct!
Wrong!
A financial assessment helps determine the borrower's ability to meet ongoing obligations like taxes and insurance.
Which factor is NOT typically reviewed in a reverse mortgage financial assessment?
Correct!
Wrong!
The assessment focuses on income, debts, and credit history, but not unrelated assets.
What is the minimum age requirement to qualify for a reverse mortgage?
Correct!
Wrong!
The FHA requires borrowers to meet a specific age threshold.
What documentation is commonly required for financial assessment?
Correct!
Wrong!
Documents verify the borrower’s income, assets, and debts.
Which financial obligation must a reverse mortgage borrower continue to meet?
Correct!
Wrong!
Borrowers must remain current on certain property-related payments.
What is the consequence of failing the financial assessment?
Correct!
Wrong!
The borrower may be required to establish a Life Expectancy Set-Aside (LESA).
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What is a Life Expectancy Set-Aside (LESA)?
Correct!
Wrong!
LESA helps ensure future payment of taxes and insurance.
Which income sources are considered in a reverse mortgage assessment?
Correct!
Wrong!
All steady and verifiable income sources help determine eligibility.
Who sets the guidelines for financial assessment in reverse mortgages?
Correct!
Wrong!
HUD establishes requirements for HECM programs.