What is a Reverse Mortgage?
A reverse mortgage is a loan. It is not a government grant. You are not selling your home to the bank and are still on title to the property. Just like any other loan, you are still responsible for the payment of your taxes and insurance, but unlike other loans, with a reverse mortgage, borrowers are not required to make regular payments of principal and interest or interest only for as long as you live in the home as your primary residence.
It is called a “reverse mortgage” because it operates in reverse of a traditional or forward loan. Rather than making monthly payments and the balance going down each month with each payment, borrowers are not required to make any monthly mortgage payments. The balance rises as the interest accrues and is added to the outstanding loan balance. While no payments are ever required on the loan, borrowers may make a payment at any time in any amount if they so desire.
Who Qualifies for a Reverse Mortgage?
Reverse mortgages are available to borrowers age 62 and over for the government-insured Home Equity Conversion Mortgage (HECM), and some proprietary or private programs will accept borrowers down to age 60. While the loan terms can cover eligible spouses under 62, they are not borrowers on the HECM reverse mortgage.
Eligible non-borrowing spouses who were deemed as such at the time the loan was closed are allowed to remain in the home under the terms of the original mortgage for life, even if the borrowing spouse passes, but since they are not a borrower on the loan, cannot access any money still in the line of credit so all non-borrowing couples should review their circumstances to see if it makes sense for them to refinance the loan in the name of both spouses as soon as each reaches the minimum age for the loan eligibility.
How are Reverse Mortgages Different from Home Equity Loans?
The reverse mortgage has greater flexibility than other loans, such as equity loans or HELOCs. It also requires that borrowers pay FHA (HUD) mortgage insurance on the HECM program. A HELOC or Home Equity Line of Credit is a bank product that is relatively inexpensive and quick to obtain. However, like most loans, there is a stricter standard to qualify for the loan, and it is not as friendly for seniors on a fixed budget.
Borrowers must qualify for a HELOC with traditional income and debt ratios that often require them to make monthly payments of at least interest-only early in the term of the loan and then may increase up to three times the amount of the early payment to include principal payments as well later in the loan during the repayment period.
At this time, the lender may no longer allow borrowers to take additional draws from the line of credit. As with senior borrowers, their income may have decreased from when they originally obtained the loan, making it even harder to repay in the remaining term. The lender can also freeze, lower the amount available, or close the HELOC at any time, according to their discretion.
The reverse mortgage is also available as a line of credit, but HUD guarantees the line. The lender cannot lower or close it at will. The line of credit grows on the unused portion monthly, and borrowers can receive more funds available later when needed rather than less at the lender’s discretion.
Since the loan is insured, if anything were ever to happen to the lender, the loan would be assigned to a new lender or HUD, and the loan would remain in effect as written.
How Much Can You Get From a Reverse Mortgage?
On a forward mortgage, you apply for a loan amount, and the lender may approve that amount or a lower amount depending on your circumstances (income, assets, credit scores, etc.). With a reverse mortgage, HUD uses a calculation to determine the borrowers’ benefit or loan amount based on several criteria, which include the borrowers’ age(s), the interest rate as expressed by an “expected rate” (more about that later), and the property value or the HUD maximum lending limit, whichever is less.
Because the borrower is never required to make a mortgage payment while living in the home, the older the borrower is, the more money the calculation will allow as a percentage of the home’s value. After all, since the loan allows the borrower to make no periodic payments and the interest is accruing, it stands to reason a 62-year-old borrower can accrue more interest in a lifetime than an 87-year-old borrower.
HUD’s calculations take this into account using actuarial tables for life expectancies. It would also be true that a loan at 4% can accrue more interest than a loan at 3%, so the calculator would also consider these differences. (You can download a copy of these tables here.) Finally, HUD has a maximum lending limit they use to limit their risk, which is currently $1,149,825.
This does not mean you cannot get a reverse mortgage on a home valued over $1,149,825, but you stop receiving additional benefits at this limit. The same-age borrower with a home worth $1,149,825 would receive the same benefit or loan as a borrower with a home valued at $1,500,000. Suppose the home is worth considerably more than HUD’s maximum. In that case, the proprietary programs (often called Jumbo Reverse Mortgages) are sometimes a better fit for those borrowers.
So, since this appears to be a “moving target” with interest rates, ages, and HUD changing guidelines involved, what is the best way to determine your eligible amount of available funds?
Try our free reverse mortgage calculator, which requires very little information and is not obligated to see how much you could expect to receive from the loan for your circumstances.
How is HUD Involved in Reverse Mortgages?
Two parties are involved in every mortgage transaction – a lender and a borrower. That is also true with a reverse mortgage. But in addition to a reverse mortgage lender, the government is involved in every transaction because HUD will insure the loan. So, there are steps the lender must follow to be sure that the loan meets HUD requirements. To be a lender for a HECM loan, the lender must be approved by HUD.
That does not mean that the originator is necessarily a HUD-approved entity. Some originators, like mortgage loan brokers, are not HUD-approved but must take the loan to a HUD-approved lender to be underwritten and closed. The loan is the same HUD HECM loan either way, but there may be additional or higher costs with more people in the mix.
Borrowers are encouraged to be good shoppers and compare different lenders. Not all lenders are priced well, and not all brokers are priced higher, but it is prudent to compare. After all, if you get the same loan with the same parameters and insurance no matter where you go, you should get the best terms for yourself and your family.
HUD is involved in every loan completed, regardless of the originator.
HUD will require every borrower to attend counseling with a HUD-Approved counselor. They will assign a HUD Case Number to control the loan’s origination. Currently, HUD reviews each appraisal and determines if another appraisal will be required. The appraisal can only be completed once it is delivered from the appraiser to the HUD EAD (Electronic Appraisal Delivery) Portal.
Lenders may only give approvals to borrowers under the program’s terms after receiving appraisal clearance through the HUD EAD. Then, the lender will deliver certain documents to HUD for insuring the loan after the loan closes.
Each set of legal documents that borrowers sign states that the lender may call the loan due and payable if HUD does not insure the loan within 9 months, so it is critical that if your lender contacts you and requests something needed for insurance, you assist them (and another document in the package that you sign says you agree to do so).
What Are the Payment Options on a Reverse Mortgage?
Lump Sum Payment
The borrower takes all the funds at closing in one lump sum draw. This is mainly used with purchase transactions when all the funds are needed to buy the home.
Line of Credit
This is the most common option wherein the borrower can draw up to their maximum available amount but can also choose any other amount and leave the remaining funds in a line of credit to be used as they desire.
A Tenure payment is a payment for life. The HUD calculator determines your payment amount based on your value, age, and interest rate.
The borrower chooses the payment amount they want rather than letting the calculator decide based on the amount to be paid for life. The payment might only last for a few years in this choice, but that might be all the borrower needs until another income stream kicks in.
The modified option is when you combine any of the options above. I.e., you choose to set part of the line aside as a line of credit for repairs but then use the rest for a tenure payment.
Initial Disbursement Limit
HUD limits any borrower’s amount in the first 12 months based on their mandatory obligations. Suppose you are not repaying qualified existing liens on the property or using the loan to purchase the home. In that case, you are limited to 60% of the Principal Limit in the first 12 months, and then you can receive the remaining 40% of your proceeds any time after 12 months. However, the fixed-rate loan program is a single-draw option.
Therefore, if you choose the fixed-rate program and your initial disbursement limit gives you less money at the close, you can never draw the remainder of the funds as you can after 12 months with the adjustable-rate line of credit program.
Reverse Mortgage Terms You Should Know (A-Z)
Reverse mortgages use many of the same terms as forward mortgages. But some terms are exclusive to reverse mortgages that you may have yet to be exposed to, and we want to help by defining some of the more often used terms. This list is not all-encompassing but will give you an excellent start on understanding the more common reverse mortgage terms you may hear used during a transaction.
3-day right of Rescission
All refinance transactions must follow the Federal law permitting a 3-day right to rescind (or cancel). If a borrower rescinds during these 3 days, the lender must cancel the loan. Even after a borrower has signed their final loan documents, the loan can only be funded once this mandated rescission period has elapsed.
The amortization schedule is an estimate given to each borrower that shows how interest and mortgage insurance will likely accrue on your reverse mortgage loan over the life of the loan. Unless you are getting a full draw at the close of the loan and have a fixed-rate reverse mortgage, this schedule is just an estimate because it cannot consider any future draws you may want to take or interest rate changes. Use this for comparison purposes only.
Affidavit of Heirship
This document is used by administrators and title companies to determine ownership of real property in the case of a deceased relative, especially if the property was not specified in the decedent’s will. This is often required in states with strong heirship laws (i.e., Texas).
Appraisal Management Company (AMC)
This is a company that employs an appraiser to evaluate your home. The AMC hires the appraiser, and, in this manner, the lender has no direct conflict or pressure on the appraiser and can remain compliant with HUD and federal Appraiser Independence Laws by allowing the appraiser to appraise the home free from any possible pressure from anyone associated with the loan transaction as required by law.
HUD allows lenders to use the dissipation of cash assets in the bank to count toward income to qualify borrowers when underwriting the loan. HUD has a formula the lender uses to determine how much of the borrowers’ assets can be used as annual income based on their age(s). That amount may be added to their other income and used to qualify borrowers for the loan.
HUD assigns a case number to each property when the borrower begins a new FHA loan. Lenders use the Case Number for several purposes. That number runs with the property even if the borrower chooses a new lender.
Property held jointly by married individuals or acquired by either spouse while married, is generally considered community property.
Your loan must be underwritten by an FHA-approved underwriter with a “DE” (Direct Endorsement) qualification. That underwriter will determine anything not present in the loan file needed to close the loan, and those items become “conditions” to close. You must satisfy the underwriting conditions to receive and close your loan documents.
HUD must approve property in a condominium project to be eligible for the HUD HECM program. The project must either already appear on HUD’s list of approved projects, or the documentation must be submitted to obtain project approval, or the lender cannot close a loan in that project (some exceptions do apply – speak to your lender about your project).
Counseling Agency and Counseling Certificate
The counseling agency is a third party that HUD approves to educate borrowers about the reverse mortgage from an educator, not a lender. Once a borrower has completed the counseling session and demonstrated a general understanding of the loan program, the counselor will give the borrower(s) a Counseling Certificate indicating successful session completion. A lender cannot get the HUD Case Number to proceed without this certificate number.
Reverse mortgages are due and payable when the last borrower on the loan passes or permanently leaves the property. In the case of eligible non-borrowing spouses, though, they are given a deferral period if the borrower passes before the non-borrowing spouse and can remain in the home for as long as they live under the same terms as a borrower (must pay the taxes, insurance and any other property charges as due and must live in the home as their primary residence).
It is important to note that a non-borrowing spouse cannot access any funds in the line of credit during the deferral period.
In 2014, HUD implemented Financial Assessment guidelines that spelled out how reverse mortgage borrowers must qualify for reverse mortgages. Those guidelines include credit requirements and income and debt requirements. HUD’s guidelines do not use debt-to-income ratios, and credit scores are not considered, but rather, you will see terms like residual income, family size, and asset dissipation used.
Good Faith Estimate
The Good Faith Estimate, or GFE, estimates all settlement charges. This will be one of the disclosures you will see in your counseling session and one of the forms that the lender should provide you when they send you a loan application package.
Remember that when you receive a proposal, lenders often use various versions of different forms. Once it gets to the application, they must use the federally approved forms, and all charges must be clearly shown. Be sure to compare all fees on each estimate.
HUD is the Department of Housing and Urban Development, and FHA is a division of HUD, the Federal Housing Administration. People use HUD and FHA interchangeably when discussing the reverse mortgage program because it is a HUD program that FHA operates.
HUD1 Settlement Statement
The final closing statement that outlines all the details of your transaction, including all charges, is the HUD1 Settlement Statement.
Mortgage Insurance Premium (MIP)
With every HUD/FHA-insured loan, borrowers have an initial mortgage insurance premium and an annual renewal. The insurance premiums are not paid out of pocket but are paid from the loan proceeds initially and then accrued on the renewals. The initial premium is 2% of the maximum claim amount, which is the lower of the value or the HUD maximum lending limit (currently $1,149,825). The renewal is .50% of the outstanding balance of the loan.
People often need clarification on all the rates they hear quoted with reverse mortgages, especially on the lines of credit programs. There is the initial rate, the expected rate, the capped rate, an index rate, and a margin. The index is the instrument used to set the basis for the rate out of the lender’s control.
The LIBOR is no longer being used and replaced with the SOFR (Secured Overnight Financing Rate). However, borrowers still see mostly Constant Maturity Treasuries as of this writing. To this rate, a Margin is added. Lenders cannot control what the index will do in the future, and most will be about the same in the long run, so borrowers should pay attention to the margin, as this will determine the ultimate interest rate charged for as long as the loan exists.
The initial rate is the rate that is the combination of the index plus the margin for the first period of the loan. Whether for one month on a monthly loan, three months, or one year, that rate may change as soon as the initial period is over. The expected rate is not charged to the borrower.
It is determined using a longer and higher index. HUD uses this only to determine how much money borrowers will receive on their reverse mortgage loan. Interest rate caps are the preset limits that kick in and keep the interest rate from rising above certain levels.
When marketing and HUD guidelines allow, lenders may be able to pay some or all of the borrower’s costs on some loans. The lenders must disclose when they are paying fees for the borrower on their behalf in the form of lender’s credits.
In other words, they must show the actual charges incurred and then show that they paid those charges for the borrower. Federal disclosure laws do not allow lenders to exclude the charges from the transaction simply.
Life Expectancy Set Aside
The HUD financial assessment guidelines require borrowers to meet specific guidelines for income, credit, and other considerations. However, approval would be entirely in the borrower’s worst interests if borrowers are within a point. In that case, HUD will allow lenders to still approve borrowers in some cases by setting funds aside from the loan to pay Property Taxes and Homeowner’s Insurance.
These set-aside funds are set aside for the youngest borrower’s life expectancy. They are known as a LESA, a Life Expectancy Set Aside. They result in borrowers receiving less money for discretionary purposes, but many like them. They only accrue interest once used to pay taxes and insurance. There is no cost to the borrower for this service.
When determining how much money is available to borrowers at closing or in the first 12 months, HUD reviews the borrowers’ mandatory obligations, including the current eligible liens on the home, any due property taxes, insurance premiums, and the costs to obtain the reverse mortgage. Eligible liens would be a current mortgage that was not a cash-out transaction obtained in the last 12 months.
Non-Borrowing Spouse (Eligible and Ineligible)
An Eligible non-borrowing spouse is the spouse of an eligible borrower who lives in the subject property but is inactive due to either age or other factors (credit, etc.). Suppose the spouse passes while the eligible non-borrowing spouse still lives in the property. In that case, the loan goes into a deferral period. The non-borrowing spouse can remain in the home under the loan terms (but cannot access any remaining funds on the line of credit).
An ineligible non-borrowing spouse does not meet the HUD requirements (I.e., does not occupy the home) and, therefore, is not eligible for the deferral treatment in the case of the passing of the occupying spouse.
Promissory Note/Deed of Trust/Mortgage/Loan Agreement
These three legal documents outline the transaction between the borrower and the lender. Lenders have no more rights than those granted to them by borrowers in these documents, and borrowers must adhere to their agreements, so these are important documents to read and understand.
The Promissory Note is the promise of the borrower to pay the lender for the money borrowed. It outlines the amount the borrower is borrowing, at what interest rate, and when it is due to repay the lender.
There are two Notes and Two Deeds / Mortgages for every adjustable-rate reverse mortgage transaction, one to the lender and one to HUD in case HUD needs to step in and advance funds on behalf of the borrower. Fixed Rate reverse mortgages have just one note and one deed/mortgage.
The Deed of Trust or Mortgage (depending on which instrument is used in the state where the property is located) secures the loan. The instrument is recorded and creates a lien on the property, which allows the lender to foreclose on the loan with a borrower’s default.
This is the same right all lenders of forward loans have as well. You need to read the documents and understand what can create a default, which includes:
- Not occupying the home as a primary residence.
- Not paying your property taxes and insurance.
- The death of the last borrower on the loan.
The Loan Agreement outlines the overall reverse mortgage transaction, including advances, mortgage insurance, and rights and obligations of both the borrower and the lender.
Power of Attorney
A Power of Attorney is a legal document that allows one person to act for another in some circumstances. It is important to note that HUD has particular requirements for using a Power of Attorney depending on the reason for its use.
Principal Limit/Principal Limit Factor
The Principal Limit in a reverse mortgage is the loan amount you will receive based on your age, interest rates, the maximum lending limit, and property value. The Principal Limit Factor is the percentage of the home’s value or the maximum lending limit, whichever is less, that determines the Principal Limit you will receive based on the formula set by HUD or the investor for the program you are interested in.
Probate is the legal process of proving or verifying a will or giving the courts time to determine what to do with a deceased individual’s property/assets when there is no will. Often, real estate must go through probate to avoid any claims of heirs or debtors later.
For a reverse mortgage, your primary residence is one at which you live most of the year and at which you are legally registered to vote (if you are registered), where your bank accounts and other legal documents are directed, and where your legal identification labels your residence (i.e., your driver’s license). If you have a reverse mortgage on this property, you must notify your lender if you plan to take extended leaves away from the home.
Repair Set Aside
A repair set aside occurs when the lender sets funds aside from your reverse mortgage to pay for repairs to your home that cannot be completed before the loan closing. They must be completed within 6 months, and the lender will set aside 1.5 times the amount of the repair cost.
It is important to note that if you have a fixed-rate loan, there is no second draw available, so unlike the adjustable-rate options where you would have access to the unused repair set aside funds after all repairs are completed and paid, any funds not used on the fixed rate program are not available to borrowers (they are also not used and therefore unborrowed and not added to the balance owed).
Residual income is the amount of money left over for use by the borrower(s) after all required debts are paid each month, and the lender uses fourteen cents ($0.14) per square foot maintenance factor for each borrower for utility costs. For example, if a borrower’s home is 1500 square feet, the maintenance and utility factor is $210 monthly. It is added to all other debts (cars, credit cards, taxes, insurance, etc.).
The total is subtracted from the borrower’s income, and the amount left is the residual income. It must meet HUD requirements for the family size of the region where the home is located.
Short to Close
Short to close refers to the amount owed exceeding the Principal Limit (loan amount) that a borrower is eligible for on the reverse mortgage. A reverse mortgage can still be accomplished when someone is short to close if they can cover the difference with their seasoned funds or a gift from a family member.
Solar Power – Uniform Commercial Code UCC Filing; Leases.
Borrowers who have solar power in their homes often have leases because they do not own the equipment. A lease is a lien on the property. The lease must be released to do a reverse mortgage, even though it can be re-recorded later.
Most solar companies will cooperate with borrowers wishing to get reverse mortgages. Still, not all will; you must check with your solar company. The companies will file a “UCC Filing,” a notice of lien on your property that they must abandon so that the HUD mortgage has priority.
Again, they can refile after the reverse mortgage closes. Still, not all companies will cooperate, and it is best to know if your company will before you spend money and time processing a loan and paying for an appraisal if your company will not.
Total Annual Loan Cost (TALC)
This disclosure is used for reverse mortgages and is not seen in forward loans. Because reverse mortgages are front-loaded (the fees are charged at the start of the loan and added to the balance owed), reverse mortgages can be pretty costly, especially if used for short-term financing.
The TALC shows borrowers the cost of financing over the years, and borrowers can readily see the actual cost reducing over time as the initial cost is spread out. This may help you determine if the loan is right for your needs based on how long you intend to keep the loan.
Trusts (Trustor, Trustee, Beneficiary)
A trust is a fiduciary arrangement established by a trustor that allows a third-party Trustee to hold assets on behalf of a beneficiary(ies). The third-party trustee can be anyone the trustor wishes, including themselves or family members (often for other family members). The trustor is also known as the donor party because they are the individual(s) who granted the assets to the trust.
When using a trust for a reverse mortgage, the trust must meet HUD requirements so the lender will have the trust reviewed by an attorney. If changes are required, most trusts can have an amendment drawn to correct any terms that violate HUD requirements at the borrowers’ and attorneys’ review, approval, and draft.
Third-Party Closing Costs
A third-party cost refers to any costs in your reverse mortgage that the lender or HUD does not charge. Lender costs are those charged by the lender and paid to the lender, who has control over and receives that payment. HUD’s cost is the Mortgage Insurance Premium, payable directly to HUD.
Third-party costs are charges from others, such as title companies, appraisers, country recorders, etc., that are not lender fees and over which the lender has no control and does not receive those funds. The lender may not charge anything whatsoever above the actual cost of the charge from that third party. A line-by-line list of closing costs can be found here.
Verification of Funds and Seasoning of Funds
When cash assets must be used to close a loan transaction, those funds must be verified as being the borrowers. The borrower must be able to produce at least 3 bank statements showing they had the funds in their account with no large deposits.
This verifies that the borrower has liquid assets and that the funds are “seasoned” in their account and not recently borrowed funds. HUD only allows using unverified funds for down payment or closing costs since that could indicate a new obligation not considered in the qualification criteria.
The Reverse Mortgage Process
Closing a reverse mortgage is similar to getting a forward loan, with a few notable exceptions. Because the loan is a complex financial transaction, HUD, Lenders, and State Laws have included some essential safeguards for borrowers, which can sometimes lengthen the process.
1. Shopping for the right lender
How do you find the best deal for your circumstances? Do you call the company based on a commercial you saw, a flyer you got in the mail, or what?
It is much easier for some borrowers because they are proficient in using the Internet and have no problem shopping and comparing loan programs and costs. This is a crucial step, and we advise borrowers to check online reviews and to get several proposals. Review the whole deal; don’t look at just one or two items.
For example, some companies have learned that they can artificially lower the cost of just one or two fees by a small amount and then raise rates or other fees that can cost borrowers tens of thousands of dollars in other areas. Don’t settle for one company that charges a lower appraisal fee only to find out too late that you just incurred a margin or other costs that will mean thousands of dollars more to you or your heirs.
Do your HUD Counseling as Soon as You Make the Decision to Get the Loan
Sometimes, HUD counselors are easy to reach and book an appointment. Sometimes, they are not. If you think you will get a reverse mortgage, book a counseling appointment with a HUD-approved counselor and complete the counseling session. In some states, you can begin the loan as soon as you have your counseling certificate; in some states like California, there is a 7-day cooling off period after counseling that your lender cannot do anything on your loan.
You need the certificate they will give you to proceed anyway. Suppose you wait until you are ready to apply to get counseled. In that case, you may have an additional waiting period that you will be forced to observe before you may proceed.
Also, the HUD counselor may bring up some information in the counseling session that lets you know what additional questions you should ask your lender before applying.
2. Work and Application Process That Suits You
The reverse mortgage application is lengthy and requires many borrower signatures. One of the recent innovations, though, is the ability for borrowers to use electronic signatures rather than having to hand-sign every document. This allows a lender to send you a package over the email you can receive, review, and “click” for your acceptance. Still, it does not replace your need to review the documents carefully.
Some borrowers find it easier because they can increase the font size (the letters) as large as needed to read easily. Some have more difficulty reading documents on the computer.
Suppose you like reading the documents on the computer. In that case, electronic signatures are much more accessible. You can store the signed documents on the computer, print them in your home, or ask the lender to send them if you cannot print a large package of loan documents.
Sign all required signature lines and return all required documents to the lender (copies of your license, social security award letters, homeowner’s insurance, etc.). If you cannot print and do not wish to sign electronically, let your lender know you still want an application package printed on paper for your review and signature. Here is a hint: if you cannot take copies, you can take pictures with a smartphone and send them if you can get a clear picture of the entire document.
Once the lender receives your completed package, they will process your loan request, which includes ordering your title review, ordering the appraisal, and, once completed, having the loan underwritten. Your processor and Loan Officer will contact you when approved to set up a loan closing.
3. Close Your Loan
Your processor will schedule a time to have a Notary visit you at your home or location where you can sign all your loan documents. Because the loan is considered a refinance transaction (unless you are using your reverse mortgage to purchase a property), a 3-day right of rescission is required by law.
The right to rescind does not include the day you sign your loan documents or Sundays or Holidays, so a 3-day right to Rescind usually stretches to 4 – 5 days, but this is true for all refinance transactions, not just reverse mortgages.
After the right of rescission period is over, the closing agent will wire your funds directly to your bank account for same-day availability of funds (unless you chose to receive a check, and then you would be subject to delivery times and funds availability based on your bank’s rules). We recommend you opt for the wire to have your money available that same day.
At All Reverse Mortgage, Inc., we understand that getting a reverse mortgage can sometimes be a bit daunting. While many of the steps or procedures are the same as any other home loan you are likely to have gone through in the past, some of the things borrowers need to do for reverse mortgages are not like any other loan they have ever closed. And we know this is for several reasons.
Anyone who has not closed a loan in the last 6 years might think any loan they worked with now seemed foreign, even if it wasn’t a reverse mortgage with all the changes the industry has undergone with TRID (Tila-Respa Integrated Disclosures) that are not like anything anyone used before October of 2015 (a disclosure that is not used with reverse mortgages).
Lenders who close all or mostly forward loans have been using the TRID disclosures and not the disclosures used by reverse mortgage lenders for the past 6 years. We understand that many borrowers have never experienced lending like it is today because just a few short years ago, it was never like this before. That is why borrowers need a company like All Reverse Mortgage when considering a reverse mortgage loan.
We do not originate any other loan programs. As our name implies, reverse mortgages are all we work with. You need a lender who has your best interests and knows the loan program inside and out, not an originator who closes mostly forward loans and only one or two reverse mortgages a year. We invite you to review our BBB reviews or our Google reviews.
These are just a couple of review sites where lenders and others cannot “buy” a review, and you can read the comments of actual customers. We hope you find information like this fact sheet and the reviews at the agencies helpful and will decide that All Reverse is the right company to help you with your reverse mortgage needs.