Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'open-end reverse mortgage'?

A. reverse mortgage that provides a lump sum payment to the borrower at closing, with no ability for the borrower to receive additional funds under the mortgage at a later date
B. reverse mortgage structured like a home equity line of credit in that it provides the borrower with additional funds after closing (either as fixed monthly payments, under a line of credit, or both)
C. loan secured by real estate that pays money to the borrower against a set principal limit based on the value of existing equity in the underlying collateral
D. loan secured by real estate with a provision that the outstanding loan amount may be increased upon mutual agreement of the lender and the borrower

Answer: reverse mortgage structured like a home equity line of credit in that it provides the borrower with additional funds after closing (either as fixed monthly payments, under a line of credit, or both)