A reverse mortgage borrower receives a lump sum payment at closing and later wants to establish a line of credit for future draws. What option is available?
Correct Answer
D) This conversion is not possible under current reverse mortgage regulations
Once a reverse mortgage borrower selects a payment option (lump sum, line of credit, monthly payments, or combination), they generally cannot change to a different payment structure without originating a new loan. The payment election is typically irrevocable under current HECM program rules.
Why This Is the Correct Answer
Once a reverse mortgage borrower selects a payment option (lump sum, line of credit, monthly payments, or combination), they generally cannot change to a different payment structure without originating a new loan. The payment election is typically irrevocable under current HECM program rules.
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