A New York reverse-mortgage file raises an occupancy concern. Which fact can trigger a problem?
Correct Answer
C) The borrower fails to occupy the home for more than 12 consecutive months.
New York reverse mortgage borrowers generally must live in the home for more than half the year, and failure to occupy for longer than 12 consecutive months can be a termination trigger in reverse co-op or reverse mortgage contexts.
Why This Is the Correct Answer
The correct response is "The borrower fails to occupy the home for more than 12 consecutive months." because New York reverse mortgage borrowers generally must live in the home for more than half the year, and failure to occupy for longer than 12 consecutive months can be a termination trigger in reverse co-op or reverse mortgage contexts.
Why the Other Options Are Wrong
Option A: The borrower travels for several weeks while continuing to occupy the home.
The borrower travels for several weeks while continuing to occupy the home. is not correct because it does not match the state-specific rule tested by the question.
Option B: The borrower receives counseling before the reverse mortgage closes.
The borrower receives counseling before the reverse mortgage closes. is not correct because it does not match the state-specific rule tested by the question.
Option D: The borrower pays property charges from a bank account instead of escrow.
The borrower pays property charges from a bank account instead of escrow. is not correct because it does not match the state-specific rule tested by the question.
Memory Technique
State rule questions: identify the state, isolate the condition, then eliminate answers that overgeneralize the rule.
Exam Tip
On state-law items, look for the answer that applies the state-specific condition instead of a broad licensing shortcut.
Common Mistakes to Avoid
- -Choosing an answer that sounds generally compliant but omits the state-specific condition
- -Treating experience, company licensing, or borrower consent as a substitute for the state rule
- -Missing limiting words such as only, generally, eligible, or statutory
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