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  • HOME
  • JUMBO REVERSE MORTGAGES
  • REVERSE MORTGAGE FAQ
  • IS IT RIGHT FOR ME?
  • PROS-CONS-CLOSING COSTS
  • WHAT ARE THE SAFEGUARDS?
  • WHAT IS HECM COUNSELING?
  • MANUFACTURED HOMES
  • FIRST TIME HOME BUYERS
  • PURCHASING WHAT NOT TO DO
  • FINDING THE RIGHT LOAN
  • POOR CREDIT -WE CAN HELP.
  • VA HOME LOANS
  • DOCUMENTS-UNDERWRITING
  • ADVISORS MORTGAGE INFO
  • CONTACT US
  • MORTGAGE LOAN ORIGINATOR
  • FLOWERS AND ME
  • More
    • HOME
    • JUMBO REVERSE MORTGAGES
    • REVERSE MORTGAGE FAQ
    • IS IT RIGHT FOR ME?
    • PROS-CONS-CLOSING COSTS
    • WHAT ARE THE SAFEGUARDS?
    • WHAT IS HECM COUNSELING?
    • MANUFACTURED HOMES
    • FIRST TIME HOME BUYERS
    • PURCHASING WHAT NOT TO DO
    • FINDING THE RIGHT LOAN
    • POOR CREDIT -WE CAN HELP.
    • VA HOME LOANS
    • DOCUMENTS-UNDERWRITING
    • ADVISORS MORTGAGE INFO
    • CONTACT US
    • MORTGAGE LOAN ORIGINATOR
    • FLOWERS AND ME

EN

  • HOME
  • JUMBO REVERSE MORTGAGES
  • REVERSE MORTGAGE FAQ
  • IS IT RIGHT FOR ME?
  • PROS-CONS-CLOSING COSTS
  • WHAT ARE THE SAFEGUARDS?
  • WHAT IS HECM COUNSELING?
  • MANUFACTURED HOMES
  • FIRST TIME HOME BUYERS
  • PURCHASING WHAT NOT TO DO
  • FINDING THE RIGHT LOAN
  • POOR CREDIT -WE CAN HELP.
  • VA HOME LOANS
  • DOCUMENTS-UNDERWRITING
  • ADVISORS MORTGAGE INFO
  • CONTACT US
  • MORTGAGE LOAN ORIGINATOR
  • FLOWERS AND ME

Helpful Information ~ Reverse Mortgage Long Island.com

Call for info: 888-843-9797 or 631-804-9044

What are the Safeguards?

 

SECURITY AND SAFEGUARDS. THAT'S THE FHA HECM PROGRAM


CONSUMER SAFEGUARDS - ASSURANCE
Your most carefree years should be your retirement years  It is possible to achieve this with a reverse mortgage. To help senior borrowers with a reverse mortgage, reverse mortgage safeguards were built into the loan by HUD.  In my opinion, these safeguards make the reverse mortgage one of the safest mortgages in the industry.

Among HECM’s consumer safeguards are several important features:


Standard & Capped Interest Rates. The interest rate is the same no matter which lender a senior chooses. On the HECM, interest rates are adjusted either monthly or annually and published weekly by the Federal Reserve. Both the monthly and annually adjusted rates have lifetime caps.


Limitation on Fees. Origination fees are set by HUD regulations and are financed as part of the Reverse Mortgage. This means a senior incurs very little out-of-pocket expense to obtain a reverse mortgage.


Independent Counseling. Before a reverse mortgage application can be processed, the prospective borrower must first meet with an independent HUD approved counselor and obtain HECM counseling. HUD oversees a network of counselors whose job is to review the transaction, answer any questions the borrower may have about reverse mortgages, and suggest alternative options. After the counseling is done, borrower's receive a HECM counseling certificate.


No Maturity Date. A reverse mortgage cannot become due during the homeowner’s lifetime. This is because the term of the loan is set to 150 years.  The fact that there are no required payments and there is a lifetime right to occupy the home means the HECM provides great protection against unanticipated future circumstances.


No Prepayment Penalty. Although the loan is not due and payable until the senior permanently moves out of the home whether by selling the home or by their passing, the reverse mortgage can be paid off at any point prior with no additional fees or costs.


No Penalty for Canceling the Loan. After the loan closes, a borrower has up to three days to cancel the transaction for any reason whatsoever.  This is called the “right of rescission” period,


Asset Protection. The HECM is a “non-recourse” loan. This means that the amount due can never exceed what the home is worth.  When the loan becomes due, the lender is repaid the sum of funds advanced plus the accrued interest, but never more than the value of the house. If there is remaining value, it belongs to the homeowner or their estate. The lender cannot look to any other asset for repayment of the debt thereby protecting borrower's assets,.


GOT QUESTIONS?

About FHA mortgage insurance: Mortgage insurance ensures you will never owe more than your home is worth on your reverse mortgage; again, this is because of the non-recourse feature of the loan.  FHA mortgage insurance protects you, but it also protects the lender.  Lenders can only recoup shortages of what is owed and be made whole by putting in a claim through the FHA through mortgage. In the documents you sign at closing, it states you are NOT personally responsible for the loan — meaning nothing other than the home itself can be attached should you default or the loan foreclose for any reason.  In the closing documents called the Note, the Mortgage, and the Loan Agreement, there is a section called NO DEFICIENCY JUDGMENT.  This means that if there is a deficiency in the payback to the lender (such as homes under water), the lender cannot recoup any of their loss from you personally nor any of your assets but will instead use the FHA mortgage insurance to recoup their loss. 


NOTE TO NEW YORK BORROWERS: You are required to obtain your own attorney to represent you in the reverse mortgage transaction.  You will be responsible for paying your attorney which can be paid out of your closing proceeds as long as this is acceptable to your attorney.


You are entitled to get your questions answered so you can make an informed decision about reverse mortgages.  Your Reverse Mortgage Specialist will answer your questions, provide a free, no-obligation comparison, and help you better understand Reverse Mortgages.   
888-843-9797 - or 631-804-9044  

WHAT IS HECM COUNSELING? - CLICK HERE

Protection for Non Borrowing Spouses

  

Another Safeguard for Borrowers


As mentioned in the "Is It Right for Me" page on this website, it used to be that if a borrower had a spouse who was under age 62 and that borrower was not on the reverse mortgage. once the borrower passed away, the spouse would eventually have to sell the home if they could not pay off the reverse mortgage.  Death is considered a "maturity event" in the reverse mortgage world, and this was a tough situation.  Thankfully, all this has changed.  Through the Mortgage Stability Act, there has been a change in reverse mortgage parameters.  If there is a non-borrowing spouse, the reverse mortgage will not become due when the borrower passes away, and their spouses who are under age 62 will be able to remain in the home. However, the HECM line of credit would no longer be accessible and all monthly proceeds would end. Speak to your reverse mortgage professional about these issues to see if this is still a viable option for you and your spouse. You may refer to the HUD Mortgagee Letter # 2014-07 - April 25, 2014 regarding non-borrowing spouse parameters.


NOTE:  Prior to getting a reverse mortgage, consult an attorney to obtain any necessary documents you have such as will, life estate, power of attorney, marriage certificate as these documents will need to be reviewed by the lender especially if there is a non-borrowing spouse.  

Reverse Mortgage Counseling

Reverse Mortgage Safeguards such as HECM counseling mandated by HUD ensure that the program is viable, fair, and unbiased.  This gives you an extra layer of protection so once you make your decision, you are sure of the step you are taking. 


Naturally, Reverse Mortgage Specialists are educated about the parameters of the reverse mortgage product and are not only licensed but required to take annual continuing education in each state where they are licensed.  

WHAT IS HECM COUNSELING? - CLICK HERE

  

Got Questions?  Click Contact Us for Advisors Morgtgage

888-843-9797 - 631-804-9044


Request Free Reverse Mortgage information from Advisors Mortgage and receive a free Reverse Mortgage proposal showing numbers and figures. We hope we have answered many of your questions. Feel free to contact us with any concerns you may have.  

CLICK HERE TO CONTACT US
  • HOME
  • JUMBO REVERSE MORTGAGES
  • REVERSE MORTGAGE FAQ
  • IS IT RIGHT FOR ME?
  • PROS-CONS-CLOSING COSTS
  • WHAT ARE THE SAFEGUARDS?
  • WHAT IS HECM COUNSELING?
  • MANUFACTURED HOMES
  • FIRST TIME HOME BUYERS
  • PURCHASING WHAT NOT TO DO
  • FINDING THE RIGHT LOAN
  • POOR CREDIT -WE CAN HELP.
  • VA HOME LOANS
  • DOCUMENTS-UNDERWRITING
  • ADVISORS MORTGAGE INFO
  • CONTACT US
  • MORTGAGE LOAN ORIGINATOR


ADVISORS MORTGAGE GROUP, LLC.,  WE TAILOR LOANS TO MEET YOUR NEEDS -- Branch NMLS 1833015, 3330 Park Avenue, Suite 1, Wantagh, NY 11793 - Phone:  888-843-9797 or direct: 631-804-9044  -  Licensed by the New York State Department of Financial Services, Licensed Mortgage Banker. Licensed by the New Jersey Dept of Banking and Insurance, Licensed by the Florida Office of Financial Regulation, 

 Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. ,

 Licensed by Texas Dept. of Savings and Mortgage Lending,  

 IMPORTANT NOTE: FOR CONCERNS OR COMPLAINTS, PLEASE CONTACT: ADVISORS MORTGAGE GROUP, LLC.,  800-778-9044

Website authorization by New York State Dept. of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site. This website is not sponsored by FHA or HUD or any government agency.  



“CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.    A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”



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