HECM complete study guide update solution
A client who is disabled due to medical malpractice reports that he has $4,000 per month income from a
settlement, and $50,000 in a retirement account. The counselor is required to: - HECM Counseling
Protocol 5.B.7.c; The Protocol specifically requires Benefits CheckUp be completed if the borrower's is
below 200% of poverty level or if the borrower is disabled. This is specifically stated in the HUD
regulations
The initial interest rate on an adjustable-rate HECM is based on: - NeighborWorks HO111 Course Manual
- Tab 8, HUD Handbook 7610.1 p. 101
TALC rates generally are greatest when borrowers live - NeighborWorks HO111 Course Manual - Tab 9:
HOW MUCH DOES IT COST? PART 3: COMPARING LOANS AND WEIGHING COSTS; TALC rates are highest
in the early part of the loan and tend to be lower the longer the loan is in place. This is because the cost
of the loan is spread out over a longer period of time
A home located in a Planned Unit Development (PUD), such as a golf-course community, may be eligible
for a HECM - HECM Counseling Protocol 5.C.2.b
Mr. Behm's home is valued at $200,000. His home needs a new roof, a new furnace, and electrical work
which will cost $25,000. Which of the following is true? - HECM Counseling Protocol 5.C.3.b; HECM
borrowers whose properties do not meet FHA standards may obtain a HECM and THEN complete the
required repairs provided that the cost of the repairs are not greater than 15% of the maximum claim
amount. The cost of the required repairs is 12.5% so Mr. B does NOT need to make some of the repairs
before closing. 150% of the estimated cost of repairs must be set aside to complete the repairs. 150% of
$25,000 is $37,500 so that is the amount that will be set aside
