CHECMS™ Independent Study Guide Table of Contents:
 
Chapter 1        Introduction to Reverse Mortgages

Background and History of Reverse Mortgages
HUD’s Predominant Role in Home Equity Conversion Mortgages

            Magnitude of Market
            WHY Reverse Mortgages

Benefits & Caveats

            Ethical Considerations 

Chapter 2        The Homeowner/Borrower  

            Eligibility and Appropriateness Considerations

Myths and Facts

            Important distinction must be made between “Eligible” and “Appropriate.” 
            Not everyone who is eligible for HECM is also an appropriate user of this program.

Subchapter on how the HECM ends –Illustrative re Appropriateness

What happens when the homeowner no longer resides in the home.

Chapter 3        Reverse Mortgage Lenders

            Who they are

            HUD qualifications

            Proprietary/Private Programs

Chapter 4        Payout Choices

            Lump Sum, Monthly Payments, Line of Credit, Combination

Comments on Restrictions on Use of Proceeds

Elaboration of Appropriateness Standards

Chapter 5        Calculations of Payments

            Factors:          Age of youngest homeowner – Life Expectancy

                                    Interest Rate– Fixed versus Floating          

                                     Existing Mortgage Debt

                                     Maximum Loan – by County

                                    COSTS – Including Total Annual Loan Cost (TALC)

Chapter 6        Mortgage Credit Analysis (Homeowner)

            Factors – NOT Credit Report or Score
            (Other than debt on certain federal programs)

            Actuarial analysis – longer life expectancy + lower advance amount

            The cost and value of the HUD guarantee

Chapter 7        Property Analysis

            Reverse Mortgage as an Asset-based loan

            Local Market Limitations and Conditions

            Declining Market language in appraisals (2008 market conditions)

            Expected market cycle – Expectation that it will recover during life of RM loan

Chapter 8        Application Process

            Step-by-Step Walk-through of what the Loan Originator needs to accomplish

Listing of forms, disclosures, preparation for homeowner counseling

            Appendix with Forms

Chapter 9        Borrower Counseling – HUD Requirements

Counselor Requirements

            Counseling Session Guidelines

            Substance of Counseling Program

Appendix with Checklist

Chapter 10      Closing and Endorsement

            Procedures

            Document Checklist 

Inclusion & Payment of Mortgage Insurance Premiums

Appendix with Forms

 Chapter 11      HUD Role in Servicing & Assignments

Relationship between HUD and Lender

            Practical Application of  Servicing Practices

            Appendix with Regulations

Chapter 12      Private/Proprietary Programs

            Representative Lenders and Programs

            Reasons for Using or Not Using non-HUD Reverse Mortgages

General Appendix Federal Authorizing Statutes
Summary  HUD Regulations
News and Updates