|UNDERSTANDING REVERSE MORTGAGES
Beginning to End
THIS SITE IS DEDICATED TO THE CONSUMER. THE PURPOSE IS TO EDUCATE
THE CONSUMER, EXPLAIN CONSUMER RIGHTS AND PROTECTIONS IN EVERY
STEP OF A REVERSE MORTGAGE FROM ORIGINATION, SERVICING, DEFAULT
REPAYMENT PLANS, MATURITY AND FORECLOSURE.
Be in charge of your Reverse Mortgage by understanding the terms and your rights.
About 99% of reverse mortgages sold today are Federally Insured Home Equity Conversion
The other 1% are proprietary or Jumbo Reverse Mortgages and are not Federally Insured.
The most important factor when getting either reverse mortgage is "Suitability". You, the
consumer are completely responsible for determining if a reverse mortgage is right for you or
will financially harm you over the long term.
To learn more about what you need to know and do when considering a reverse mortgage go to
"Getting A Reverse Mortgage".
PURPOSE OF THE REVERSE MORTGAGE
The Reverse Mortgage program was created to fulfill the promises consumers hear in the TV
commercials: “A reverse mortgage is a safe government insured loan that allows the borrower
to access built up equity in their home, stay in their home for life without making a house
payment, provide financial security, provide additional income, a better quality of life in
retirement and meet the borrowers wishes for their estate.”
I will repeat this throughout the website: "If a Reverse Mortgage is Suitable (right) for you there is
a great deal less risk that you will find yourself in a wrongful foreclosure.
ORIGINATION: What you need to know and do to make sure a reverse mortgage is right for you.
Generally most people are happy with their reverse mortgage right after they get it and for the
first few years. When it becomes clear the loan was not suitable for the Borrower or they didn't
understand the complex terms that is when the problems start.
SERVICING: Once you have a reverse mortgage your loan will be sold or handled by a loan
servicer where you are a loan number and property address. Servicing should be the smooth
part of the loan process but often is where the trouble begins.
NON-BORROWING SPOUSE: As of June 12, 2015 after years of litigation HUD issued
Mortgagee Letter 2015-15. The intention of the court ruling is to allow as many surviving
spouse/partners as possible the right to remain in the home for the rest of their life.
MATURITY AND/OR FORECLOSURE: There are 17 legal triggers to default. The most common
being the death of the Borrower, tax and/or insurance defaults, or occupancy reasons. Wrongful
foreclosures happen with Servicer violations of federal regulations, consumer protections, and
REGULATIONS AND LAWS:
The few regulatory rights and options the consumer has.
Common Servicer violations of federal regulations, consumer protections and State Laws
Non-Borrowing Spouse Application and Assignment to HUD
Help Programs for Tax, insurance, or HOA Defaults
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