Reverse Mortgages

This is a policy guide to comply with originating Reverse Mortgage loans for mortgage lenders. This a separate policy guide. Once purchased this guide will be customized to your specifications. You will receive an immediate invoice receipt with a download link to a questionnaire with some simple questions to answer and receive your customized guide within 24-48 hours. This is written for independent mortgage bankers but can be customized for depository financial institutions and credit unions. 

Table of Contents

REVERSE MORTGAGE POLICIES

• PURPOSE
• SCOPE
• Training

REVERSE MORTGAGE OVERVIEW

• REVERSE MORTGAGE ELIGIBILITY
  • Applicant Eligibility
  • Property Eligibility

REVERSE MORTGAGE REQUIREMENTS AND PROCESSES

• Pre-Application Housing Counseling
• Loan Principal Amount Limit
• Expected Average Interest Rate (Expected Rate)
• Interest Rate
• Maximum Claim Amount
• Payment Plans
• Mortgage Insurance Premium (MIP)
• Payment to HUD of MIP
• Assigning the File to HUD
• Reverse Mortgage Processing
• Reverse Mortgage Loan Servicing
• Properties Held in Trust
• Use of Power of Attorney (POA)
• Partial Prepayments
• Post-Closing Requirements
• Additional Documents

MORTGAGE DISCLOSURES & DOCUMENTS

• Counseling Certification
• Face-to-Face Application
• Good Faith Estimate of Settlement Costs & Truth in Lending Statement
• Application Notice
• Total Annual Loan Costs (TALC)
• Copies of Note and Mortgage
• Notice to Borrower
• Junior Lien Notice
• Credit Report
• CAIVRS
• Title Commitment
• Borrower Identification
• Other Applicable Documents & Disclosures
• Escrows
• Verification of Deposit (VOD)

REVERSE MORTGAGE FEES

• Servicing Fees
• Discount Points
• Origination Fees
• Third-Party Services (Credit report, Appraisal, Title, etc.)
• Recording Fees
• Property Survey
• Title Examination and Title Insurance Policy
• Attorney's Fees
• Settlement Fees
• Tax Service Fees
• Tests or Treatments
• Courier Fees

DECLINING AN APPLICANT FOR A REVERSE MORTGAGE LOAN

APPENDIX A (DEFINITIONS)

• Reverse Mortgage