Homeownership Counseling Flashcards
Who is considered an eligible homeowner?
A person where a single-family home will be the principal residence and the home owner is, or is expected to be, unable to make payments, correct a deficiency within a reasonable time, or resume full home loan payments.
The creditor must notify an eligible homeowner before the expiration of __ days after the loan becomes delinquent or goes into default.
45
What is a HECM?
Home Equity Conversion Mortgages
What are the special requirements for HECMs under homeownership counseling requirements?
When borrowers are delinquent on HECMs due tot he failure to pay property charges, the morgagees must provide a notice at the time of the first delinquency of the borrower’s option:
- Establishing a realistic payment plan for the delinquent property charge(s)
- Contacting a HUD-approved Housing Counseling Agency (HCA) to receive free assistance to find a viable solution to their delinquency; and
- Refinancing the delinquent HECM to new HECM (if there is sufficient equity).
To which homeowners must a bank give homeownership counseling disclosure and a Servicemembers Civil Relief Act Notice?
a. All borrowers at time of application
b. Only borrowers who are servicemembers
c. All borrowers who are more than 45 days delinquent on their mortgage loan secured by a principal dwelling d. All borrowers who are no more than 45 days delinquent on their mortgage loan secured by a principal dwelling
d. All borrowers who are no more than 45 days delinquent on their mortgage loan secured by a principal dwelling
Elliot Pierce, a borrower at ACME bank, defaulted on his home loan. It is the seventh home he has owned in his life. Elliot defaulted because, although his job is stable, he decided that he overpaid for the house and he could rent an apartment and save more money. Elliot has defaulted on mortgages in the past and believes his credit will recover. The bank is planning to send Elliot a default letter. Does the bank need to send Elliot a homeownership counseling disclosure?
a. Yes, because it is Elliot’s principal dwelling
b. No, because it is not Elliot’s first principal dwelling
c. No, because Elliot’s reason for default makes him ineligible
d. No, because Elliot has defaulted on loans before this one
c. No, because Elliot’s reason for default makes him ineligible
Juanita Brown has her home loan at ACME Bank. Her payment was due on December 1. It is now January 7. Must ACME send her a homeownership counseling notice?
a. Yes, all eligible borrowers must receive a notice before the loan is delinquent for 45 days unless a payment is made within that time.
b. No, the loan has not been delinquent for 45 days.
c. No, the notice is optional.
d. Yes, eligible borrowers should receive a notice when the loan is delinquent by 30 days
a. Yes, all eligible borrowers must receive a notice before the loan is delinquent for 45 days unless a payment is made within that time.
