Reverse Mortgages are designed to enable senior homeowners 62 years and older to convert part of their home equity into cash. They can do this without having to sell their home or give up the title. Seniors do not have to take on any new monthly mortgage payments either (although they are required to continue paying their property taxes and homeowners insurance). Instead of making monthly payments to a lender, the reverse mortgage lender makes payments to the senior homeowner.
Best of all, you will
- Retain title to your home
- Not have to make ANY monthly mortgage payments on your reverse mortgage (you continue to be responsible for paying your property taxes and homeowners insurance)
- Not be personally responsible for any balance greater than the sale value of your home
- All borrowers must be at least 62 years of age
- Property must be your primary residence and owner occupied
- Must participate in a HUD approved counseling session
- You are still required to maintain property taxes, insurance, and routine maintenance
Loan Amount Based On
- Age of youngest borrower
- Current interest rate
- Type of reverse mortgage
- The lesser of the appraised value or FHA lending limit
NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION
PLEDGE TO REVERSE MORTGAGE BORROWERS
The mission of the National Reverse Mortgage Lenders Association is to educate you about reverse mortgages and to help you determine if one might be the right choice for you. We know your home is a prized possession of you and your family. We are sensitive to the fact that utilizing your home equity while you remain in the home is a major financial and emotional decision. All NRMLA members are required to abide by a Code of Ethics & Professional Responsibility in
which we pledge to serve you with integrity. Your best interests are our primary consideration.
Prior to you getting a reverse mortgage, as a NRMLA member we will:
➔ Know and comply with all State and Federal laws and regulations that protect reverse mortgage borrowers.
➔ Present you with the full range of reverse mortgage products available from our company.
➔ Clearly explain the terms, benefits and costs of each product we present.
➔ Inform you of your responsibilities as a reverse mortgage borrower including paying real estate taxes on time, keeping the property properly insured and maintaining the home in sound condition.
➔ Work with you and, if you request, with your family and financial advisors either face-to-face or on the telephone as frequently as you choose to educate you, answer any and all questions and help you assess whether a reverse mortgage might be beneficial to you.
➔ Explain the benefits of and statutory requirement that you have reverse mortgage counseling.
➔ Provide you with a list of HUD-approved independent housing counseling organizations that employ exam qualified counselors to serve you. The choice of the organization is yours and yours alone.
➔ Help you prepare for your counseling session to make it most effective by providing you with questions you might ask and information you should be prepared to provide to the counselor.
➔ Prepare loan comparison projections and an amortization table for the loan being proposed to review at your counseling session.
➔ Not charge any fees prior to the completion of mandatory counseling.
➔ Help you analyze your financial ability to meet your responsibilities under the reverse mortgage.
➔ Recommend that you seek professional advice if you are receiving assistance from SSI, Medicaid or other government programs.
➔ Recommend you seek professional tax advice when appropriate.
➔ Allow you to decide when to close on the reverse mortgage loan and not pressure you to make a decision.
➔ Provide you with opportunities during the loan process to change your mind and not take the loan.
➔ Pay off the existing liens shown of record, verify taxes are paid, and make sure that you have proper insurance upon closing.
Once you have a reverse mortgage, a NRMLA member loan servicer will:
➔ Notify you promptly if you have fallen behind in your tax and insurance obligations and direct you to seek advice in the event you are not able to fulfill your responsibilities.
➔ Keep you informed of your current loan balance and of all costs by providing regular statements detailing
➔ Be available to answer any questions you may have about your account.
You can BORROW WITH CONFIDENCE from a NRMLA member.
Copyright © National Reverse Mortgage Lenders Association 2011