REAL ESTATE TRAINERS, PRACTICE EXAM #9 (2026/2027) UPDATE|EXAM QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED ANSWERS (NEW)!!!

REAL ESTATE TRAINERS, PRACTICE
EXAM #9 (2026/2027) UPDATE|EXAM
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
1.mAllmofmthemfollowingmaremtruemregardingmthemcounselormwhommeetsmwithmamprospectivemborro
wermformamreversemmortgage,mexcept:



A.mThemcounselormexplainsmthemcostmofmthemloanmandmthemfinancialmimplicationsmofmobtainingmit.

B.mThemcounselormismpaidmonlymifmthemborrowermgoesmthroughmwithmthemreversemmortgage.

C.mAtmthemendmofmthemsession,mthemcounselormwillmprovidemamrequiredmcertificationmofmcounseling
.

D.mThemcounselormwillmprovidemguidancemandmadvicemonmselectingmamlendermformthemreversemmort
gage.m-
mCORRECTmANSWERmB.mThemcounselormismunbiasedmandmindependent,mandmhis/hermcompensatio


nmismnotmdependentmonmanymdecisionmthemborrowermmakes.



2.mAllmofmthemfollowingmaremtruemregardingmthemamountmthatmcanmbemborrowedmonmamreversemmo
rtgage,mexcept:



A.mThemmoremthemhomemismworth,mthemmoremcashmcanmbemborrowed.

B.mThemyoungermthemborrowermis,mthemmoremhe/shemcanmborrowmbecausemhe/shemhasmlongermtom
paymitmback.

C.mThemmoremequitymthatmhasmbeenmbuiltmup,mthemmoremcashmcanmbemborrowed.

D.mThemlocationmofmthemhomemandmthemparticularmprogrammthatmhasmbeenmselectedmwillmdetermi
nemhowmmuchmmoneymcanmbemborrowed.m-
mCORRECTmANSWERmB.mTypically,mthemprincipalmlimitmismhighermformanmoldermborrowermbecausemt


hemshortermthemlifemexpectancy,mthemquickermthemloanmcanmbemrepaid.

,3.mWhichmofmthemfollowingmismthemmostmcommonmusemofmfundsmfrommamreversemmortgage:



A.mTomsupplementmamfixedmretirementmincome.

B.mTomcovermcostsmofmhealthcare.

C.mTommakemhomemimprovements.

D.mAllmofmthemabovemaremcommonmusesmofmproceedsmfrommreversemmortgages.m-
mCORRECTmANSWERmD.mThesemaremthemcommonmusesmofmthemproceeds,mbutmtheymcanmbemusedmf


ormvirtuallymanything.



4.mWhenmcanmtheminterestmthatmamlendermchargesmformamreversemmortgagembemdeductedmonmambor
rower'smincomemtaxmreturn?



A.mAtmtheminceptionmofmthemloan.

B.mAftermthemfirstmcompletemyearmofmthemloanmterm.

C.mWhenmthemloanmprincipalmandminterestmaremrepaid.

D.mInterestmismnotmdeductiblemonmamreversemmortgage.m-
mCORRECTmANSWERmC.mYes,matmthemendmofmthemtermmonmamreversemmortgage.




5.mWhenmismthemtypicalmreversemmortgagemduemandmpayable?



A.mWhenmthemborrowermdies.

B.mWhenmthemborrowermsellsmthemhouse.

C.mWhenmthemborrowermceasesmtomliveminmthemhousemform12mconsecutivemmonths.

D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,mthesemaremtypicallymthemoccasionsmwhenmthemborrowermmustmrepaym


themloan.



6.mPayoffmofmamreversemmortgagemincludesmwhichmofmthemfollowing:

, A.mThemloanmamount.

B.mAnymunpaidminsurancemthatmismdue.

C.mAnymoutstandingmfeesmasmstipulatedminmthemloan.

D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,mallmofmthesemaremtombemrepaidmasmstipulatedminmthemloan.mHowever,m


mostmclosingmcostsmandmfeesmarempaidmupfrontmasmthemloanmismestablished.



7.mAllmofmthemfollowingmaremtruemregardingmamreversemmortgage,mexcept:



A.mAmlendermcanmforcemamborrowermoutmofmthemhomemonlymifmthemborrowermfailsmtommakemthreemc
onsecutivempayments.

B.mAmlendermcannotmsellmamhomemsubjectmtomamreversemmortgagemwhenmthemloanmbecomesmdue.

C.mInmthemeventmofmdeath,mthemlendermusuallymallowsm12mmonthsmformpayment.

D.mWhenmpaymentmismdue,mifmthemhomemismnotmsoldmormdeededmtomthemlender,mthemlendermcanmfo
reclose.m-mCORRECTmANSWERmA.mThemborrowermismnotmmakingmpayments,mremember?



8.mInmamreversemmortgage,mundermwhichmofmthemfollowingmcircumstancesmcouldmthemlendermrequir
emimmediatempayment:



A.mAmgovernmentmentitymclaimsmeminentmdomainmovermthemproperty.

B.mThemhomeownermfailsmtompaymthempropertymtaxesmonmthemhome.

C.mThemhomeownermfailsmtomkeepmthempropertyminsuredmwithmhazardminsurance.

D.mAllmofmthemabove.m-
mCORRECTmANSWERmD.mYes,manymofmthesemsituationsmwouldmallowmthemlendermtomdemandmimme


diatempayment.