Which of the following is a federally-insured program backed by the U.S.Department of Housing and Urban Development?
A)Home Equity Conversion Mortgage.
B)Proprietary Reverse Mortgage.
C)Single-Purpose Reverse Mortgage.
D)VA Home loan.

Question

Quizplus · Accepted Answer

Home Equity Conversion Mortgage (HECM) is a federally-insured program backed by the U.S. Department of Housing and Urban Development (HUD). HECMs are the most popular type of reverse mortgage and are backed by federal insurance, which guarantees that borrowers will receive their loan proceeds even if the lender goes out of business. Proprietary reverse mortgages are not backed by the government, and single-purpose reverse mortgages are offered by nonprofit organizations and government agencies to homeowners with low to moderate incomes. VA Home loans are a benefit provided by the Department of Veterans Affairs to eligible veterans and their surviving spouses, and are not related to reverse mortgages.

Which of the Following Is a Federally-Insured Program Backed by the U.S.Department