Senior Safeguards: Protecting Seniors with Reverse Mortgage Counseling
While many people first heard about reverse mortgages only in the last few years, this special type of home equity transaction actually began more than 50 years ago and has continued to evolve. These mortgages were first insured by the Federal Housing Administration in the early 1980s. The Home Equity Conversion Mortgage (HECM) followed in 1989 and was made a permanent part of the national landscape ten years later. In 2006, a loan limit was set at $417,000, just before the first baby boomers began turning 62.
Because reverse mortgages continue to evolve, it’s important for any senior considering one to seek independent reverse mortgage counseling and to understand all the relevant facts. To learn more about counseling and reverse mortgage requirements, contact a loan officer at Citizens Lending Group online or by phone today.
Understanding Reverse Mortgage Safeguards
We believe each person deserves the knowledge and information they need to make an informed decision. Our mortgage brokers adhere to standards and a code of conduct aimed at protecting the interests of seniors and their families — including an emphasis on counseling from independent, HUD-approved counselors. As reverse mortgages have become a reliable part of the U.S. financial landscape, certain safeguards exist to protect the borrower. Our process includes:
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Scheduling a consultation between the borrower and our reverse mortgage lender, by phone or in person, to determine the borrower’s needs — including a breakdown of costs and other information to benefit the senior.
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Providing each loan candidate with a printed comparison of the mortgage process, reviewed together to ensure the options and benefits of different scenarios are clearly understood.
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Encouraging seniors to include family members, friends, and legal or financial advisors in the planning and counseling process.
Reverse Mortgage Counseling: An Important Part of the Process
We can provide each candidate with a list of independent, HUD-approved counselors, so you can receive objective counseling and discuss every option available to you. After your acceptance and approval, we submit the application to our team for careful review, and our underwriting department performs a secondary review of the program and product choice. Once the final review is complete and closing is finished, a “Reverse Mortgage Loan Report Card” is sent to each client, including relevant comments from those who took part in the process.
This carefully constructed program helps ensure that we, as the loan officer, are acting in good faith and in the client’s interest. From education to independent counseling, our goal is to make sure each client has the information and tools to choose the reverse mortgage solution that’s right for them.
