The supervisor compares the file facts with Reverse Mortgage Payment Options during a borrower follow-up call. Which conclusion is accurate?

Correct Answer

B) Check whether special high-cost or rescission rules apply

Why this is correct: The correct answer is "Check whether special high-cost or rescission rules apply." Reverse mortgages are a specialty product with unique features and risks. They are subject to specific consumer protection rules, including special disclosure requirements, counseling mandates, and potentially high-cost mortgage (HOEPA) rules if certain cost thresholds are triggered. The right of rescission rules also apply differently to these loans compared to standard forward mortgages. A supervisor must verify the file complies with these product-specific regulations. Why the other choices are wrong: "Apply a different loan-program rule without checking the file facts" is wrong because it promotes applying rules blindly without verifying their applicability to the specific loan facts, which is a compliance error. "Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan" is wrong because borrower preference never overrides legal and program eligibility requirements. "Use the same treatment for all mortgage products without comparing program requirements" is wrong because reverse mortgages have distinct rules that differ significantly from those for standard purchase or refinance mortgages. Exam tip: Specialty loans (reverse, HELOC, interest-only) always require you to double-check for unique rules on disclosures, counseling, and high-cost triggers.