PROCESS

AWARENESS

You may have heard about the reverse mortgage loan on TV, through the radio, online, received a mailer, or you simply did your own research.

EDUCATION

Meeting with a qualified Mortgage Loan Originator is key. This is where you learn about your specific numbers, what you qualify for, and receive an analysis of your particular situation. Please keep in mind that a CRMP can give you even more assurance that you are working with a qualified individual that has the knowledge and ethics you expect.

COUNSELING

Counseling is required from an independent third-party, HUD-approved counseling agency, for all reverse mortgage borrowers. Typically this fee is paid by the borrower. Consult with your Reverse Mortgage Loan Originator and make sure you complete this as soon as possible. Many times counseling can be completed over the telephone. You will receive two certificates; one to keep and the other to send to our office.

ACTION

Meet with your Mortgage Loan Originator to finalize the application and provide all necessary documentation that will be needed. Our reverse mortgage professionals may meet with you at our office, your home, or by phone to help guide you through the application. You will be left with a complete copy of ALL the documents for you and your trusted financial advisors (i.e. CPA or attorney) or family member(s) to review.

FINANCIAL ASSESSMENT

To help ensure the long-term success of the HECM loan over time, HUD requires a financial review of each applicant’s credit history, property tax payments and other credit factors that will be evaluated to measure a borrower’s willingness and financial capacity to meet the ongoing obligations of the loan.

APPRAISAL

Upon receiving your HUD counseling certificate we will contact you to arrange for an appraisal of your property. The appraisal is paid by the borrower and handled by an Appraisal Management Company (AMC). Reverse mortgages use a full FHA appraisal. The value of your home is based on what comparable homes in your neighborhood have sold for recently.

PROCESSING

We (my team as well as the lender) will begin to process your paperwork. This process includes the appraisal, title report, and checking the balance of any liens to be paid. Also, verification of income and other credit factors are gathered at this time. We will be in contact regularly during this time.

UNDERWRITING

When the processing and all paperwork is complete, we submit your file to the loan underwriter. They will determine if the loan is to be approved per FHA guidelines. If needed, we will work to satisfy any conditions or requirements necessary to meet these guidelines and get your loan closed.

FUNDS DISBURSED

Once your loan has been approved by underwriting we will contact you to arrange for the signing of your final loan documents. At this time we will confirm your payment plan or partial lump sum (how you want to receive your money). Once you’ve signed the closing documents, you have three (3) business days

to cancel the loan if you should choose to do so. After the cancellation (rescission) period has passed, your funds are distributed based on the payment option you chose. HECM for Purchase loans do not have a rescission period. See HECM for Purchase Guidelines for more information.