HOW CAN I REQUEST FUNDS FROM MY LINE OF CREDIT?

If you selected a line of credit as part of your payment plan option, you may request those funds by sending a written request to the servicing department.  You will receive a Line of Credit draw request form with each monthly statement, provided you have available funds remaining.  The draw request form can be mailed to us (our address is on the form) or faxed toll-free at (866) 616-2160.

Once we receive your signed request, it will be processed.  We will deposit the funds electronically in your bank or credit union account within 5 business days.  If you request the funds be paid by check, please allow 7 days for mail delivery time to receive it.

WHO IS RESPONSIBLE FOR PAYING THE PROPERTY TAXES AND INSURANCE ON MY HOME?

When you took out your reverse mortgage, you signed documents requiring you to make your property tax payments on time and keep your homeowner’s and flood insurance (if applicable) current.

Unfortunately, these important requirements can sometimes be overlooked.  However, not paying your taxes or insurance on time could cause your reverse mortgage to be placed in default status, and your loan could be called “due and payable.” If your loan is approved to be called “due and payable,” it could lead to foreclosure on your home, and we want to help you avoid that situation at all costs.

Reverse mortgage borrowers can only participate in tax deferral programs in California, Oregon, and Massachusetts.  However, you are encouraged to look into local senior tax exemption programs, which may decrease your annual property tax bill.  You also can always seek the advice, free of charge, of a reverse mortgage counselor by calling (800) 569-4287.

WHAT SHOULD I DO IF I HAVE REQUIRED REPAIRS THAT NEED TO BE COMPLETED?

Suppose you have certain repairs to your home that were required as a condition of receiving your reverse mortgage.  In that case, you will receive information from us that will be mailed to you shortly.  This letter will provide a step-by-step instruction guide for the repair set-aside.

You do not need to wait for this information before starting the home repairs.  You must get them started as soon as possible to ensure you can complete the repairs by your deadline.

WHAT IS THE ANNUAL OCCUPANCY CERTIFICATION?

As part of receiving your reverse mortgage, you agreed to live in your home as your primary residence.  You can take vacations or leave the home for up to 12 months without defaulting by occupancy requirements.  However, please let us know if you will be out of the home for more than two consecutive months, so we can keep our records current for mailing your monthly statement.

Your reverse mortgage servicing is required by HUD to verify, on an annual basis, that you are still living in your home.

You will receive a letter from us each year, starting one year after you receive your reverse mortgage.  To certify your occupancy, sign your name on the document within 30 days and send it back to us.

HOW DO I ARRANGE FOR MY PAYMENTS TO BE DEPOSITED DIRECTLY INTO MY BANK ACCOUNT?

You do not need to do anything if you provided a voided check at the time of your loan closing for this purpose.  If you did not provide a voided check at closing and would like to do so now, please mail us a voided check and a letter asking that your funds be sent via direct deposit.

Suppose you want to set up your funds to be directly deposited into a savings account.  In that case, you must obtain a letter from your bank or credit union (on their letterhead) listing the savings account number, the bank or credit union’s routing number, and any names on the account.  The loan servicer will set up your direct deposit when they receive the letter from your bank, along with your letter requesting that they set you up on direct deposit.

It is important to note that only the borrower(s) on the reverse mortgage (or financial Power of Attorney) can be listed on the account used to set up the direct deposit.  There is no fee charged to you for the direct deposit service.

WHEN WILL I RECEIVE MY SCHEDULED MONTHLY PAYMENT?

If you elect to receive a scheduled monthly payment as part of your payment plan option, your first payment will be sent to you on the first business day of the month following the funding of your loan. 

For example, if your loan is funded in November, your first payment will be sent to you on the first business day of December.  If you are set up on direct deposit, your monthly payment will be in your bank or credit union account on the first business day of each month.

If you elected to receive a scheduled monthly payment and requested a paper check, it will be mailed to you on the first business day of each month.  Please allow for a mailing time of 7 days for your check.

WHAT HAPPENS TO MY REVERSE MORTGAGE IF I DIE OR MOVE FROM THE HOME PERMANENTLY?

Your reverse mortgage must be repaid when the last surviving borrower passes away, moves from the home permanently, or does not occupy the home for longer than 12 months.

Depending on the type of reverse mortgage you received, you (or your heirs) may be eligible for time extensions ranging from six months to one year.  These potential time extensions only provide time to satisfy the balance of the reverse mortgage.

If the home is sold for more than the balance of the reverse mortgage, the remaining proceeds from the sale are yours (or your estate’s) to keep.

Also See: 6 Critical Steps for Heirs of a Reverse Mortgage

WILL I RECEIVE AN ACTIVITY STATEMENT ON MY REVERSE MORTGAGE?

You will receive a monthly statement of the activity on your reverse mortgage.  These statements are mailed out by the 5th business day of each month.  Because of mailing time, it can take up to 7 days after that for you to receive your statement in the mail.

You also will receive an annual statement in January of each year detailing all of the activity on your reverse mortgage over the previous year.

If you pay your reverse mortgage in full or have paid towards interest or mortgage insurance premiums during the past year, you will receive a 1098 mortgage interest statement by January 31st, which you may use for tax return filing purposes.

Because most reverse mortgage borrowers do not make any payments on their loans, 1098 mortgage interest statements are typically only sent once the loan is paid in full.

WHO OWNS MY HOME?

You retain full ownership of the property.  Your reverse mortgage is simply a loan taken out against the equity in your home.

As long as you occupy the home as your principal residence, keep your property taxes and insurance current, and comply with all of the terms of your reverse mortgage, you will be in no danger of losing your home because of the reverse mortgage.

HOW DO I READ AND UNDERSTAND MY MONTHLY STATEMENT?

For your convenience, we have included a guide on “How to Read My Reverse Mortgage Statement” at the end of this packet.

I WAS TOLD THAT MY LOAN MIGHT GROW.  WHAT DOES THAT MEAN?

Depending on the type of reverse mortgage you received, you may experience “loan growth” on your reverse mortgage.  This “growth” is simply an increase in the amount of money you can withdraw if you elect to have a line of credit as part of your payment plan option.

To simplify this concept, “growth” is sometimes misdescribed to reverse mortgage borrowers, similar to earning interest on a bank account.  Your reverse mortgage is not a bank account and does not earn interest.

The “growth” is additional credit that you may receive as time goes on with your reverse mortgage.  Not all reverse mortgage loans have this growth feature.  Those that do typically experience growth in their available funds in their line of credit approximately equal to the current interest rate.

However, because changing interest rates affect the level of growth, it is impossible to know what level of growth your reverse mortgage may or may not have over the life of your loan.

WHO SHOULD I CONTACT FOR ANY QUESTIONS ABOUT MY REVERSE MORTGAGE?

Our Borrower Care Associates are available from 8:00 am to 8:00 pm Eastern Time Zone, Monday through Thursday, and 8:00 am to 5:00 pm Eastern Time Zone on Fridays.  You can reach us by calling our toll-free number: (866) 654-0020.  Your loan servicer can also be reached by fax at (866) 616-2160 or via e-mail at: BorrowerCare@reversedepartment.com.  

If you would prefer to write to us for anything related to your reverse mortgage, please mail it to the following address:

Reverse Mortgage Servicing Department
P.O. Box 40724 Lansing, MI 48901-7924