Senior Safeguards: Protecting Seniors with Reverse Mortgage Counseling
While many people might say they started to hear about reverse mortgages only in the last few years, the truth is that this special type of home equity transaction actually began more than 50 years ago and has been evolving in recent years.
These types of mortgages were first insured by the Federal Housing Administration in the early 1980s. A new type of transaction, the Home Equity Conversion Mortgage (HECM), was then issued in 1989. The HECM was made a permanent part of the national scene ten years later. Then in 2006, a loan limit was set at $417,000, just before the first members of the baby-boom generation began to turn 62.
Even today, reverse mortgages continue to evolve, so it is important for any senior considering a reverse mortgage to seek out independent reverse mortgage counseling and make sure they understand all of the facts. To learn more about reverse mortgage counseling and reverse mortgage requirements, contact a loan officer at Citizens Lending Group online or by phone today!
Understanding Reverse Mortgage Safeguards
When it comes to reverse mortgages, we believe that it is crucial that each individual has the knowledge and information that they need to make an informed decision. Our mortgage brokers adhere to and maintain standards and a code of conduct aimed at protecting the interests of seniors and their families. This includes an emphasis on reverse mortgage counseling from an independent HUD approved counselors.
As a reverse mortgage loan has now become a regular (and reliable) part of the U.S. financial landscape, certain senior safeguards and guidelines exist to protect the borrower. The methods that we incorporate in our process include:
- Scheduling a consultation between the borrower and our reverse mortgage lender by phone or in person, to determine the borrower's needs. This consultation includes a breakdown of costs and other information to benefit the senior, a key part of reverse mortgage counseling.
- Providing each loan candidate with a printed comparison of the mortgage process. We review this breakdown with the borrower to ensure that they clearly understand the options and benefits that different reverse mortgage scenarios offer.
- Encouraging seniors to include family members and friends in the planning and reverse mortgage counseling process, along with legal advisors and financial advisors who can help them make the best decision for their financial future.
Reverse Mortgage Counseling: An Important Part of the Process
In addition to these safeguards, we recognize that reverse mortgage counseling is a key part of the process. We can provide each candidate with a list of independent HUD approved counselors. Therefore, you can receive object reverse mortgage counseling and discuss all of the reverse mortgage options available to you. This reverse mortgage counseling serves to ensure that the borrower is has sufficient knowledge to make a good decision.
After your acceptance and approval of a reverse mortgage loan, we submit the application to our team who makes a careful review of the application to ensure an educated decision has been made. After this initial reverse mortgage review, our underwriting department will perform a secondary review of the program and product choice.
Once this final review is conducted and closing is complete, a "Reverse Mortgage Loan Report Card" is sent to each senior client. This report includes all relevant comments and opinions from those who took part in the application process.
This carefully constructed program serves to make sure that we, the loan officer, are acting in good faith and in the clients' interest. From education to independent reverse mortgage counseling, ultimately our goal is to make sure that each client receives the information and tools they need to choose the perfect reverse mortgage solution for their needs.
To learn more about reverse mortgage requirements and this process, contact us today!