Sec3-Page74

Quiz Summary

0 of 5 Questions completed

Questions:

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 5 Questions answered correctly

Your time:

You have reached 0 of 0 point(s), (0)

Current
Review
Answered
Correct
Incorrect

Question 1 of 5

1. Question
A consumer responds to a reverse mortgage advertisement but believes the home equity will remain fully untouched throughout the loan. Which disclosure should the advertisement clearly summarize?
- The borrower automatically transfers title to the lender at closing
- Some or all of the equity may no longer belong to the person at the conclusion of the loan
- The borrower can never be required to repay the reverse mortgage
- Reverse mortgages do not affect the future sale of the property
Correct

Incorrect
Question 2 of 5

2. Question
A reverse mortgage lender advertises loan proceeds but does not explain that certain charges may be financed into the loan. Which statement should be disclosed?
- The lender may charge origination fees, mortgage insurance premiums, closing costs or servicing fees and add them to the loan balance
- Reverse mortgages never include closing costs
- Fees must always be paid fully in cash at closing
- Servicing fees are prohibited on reverse mortgages
Correct

Incorrect
Question 3 of 5

3. Question
A borrower assumes that because no monthly payment is required, the reverse mortgage balance will remain unchanged. Which disclosure addresses this misunderstanding?
- The balance decreases automatically over time
- The balance grows over time and interest is charged on the outstanding loan balance
- Interest applies only if the borrower sells the property
- The balance is frozen once the loan closes
Correct

Incorrect
Question 4 of 5

4. Question
A homeowner believes that once a reverse mortgage closes, the lender becomes responsible for taxes, insurance, and maintenance. Which disclosure is required?
- The lender takes over all property expenses after closing
- The borrower no longer has title to the property
- The borrower retains title and remains responsible for property taxes, insurance and maintenance
- Property expenses are automatically waived for reverse mortgages
Correct

Incorrect
Question 5 of 5

5. Question
A consumer wants to deduct reverse mortgage interest on their income tax return while the loan balance is still outstanding. What disclosure must be provided?
- Interest is always deductible each year
- Interest is never deductible under any circumstance
- Interest is deductible only when the borrower refinances
- Interest is not deductible until all or part of the reverse mortgage loan is repaid
Correct

Incorrect

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question