Right now, today, while the Borrower is living make sure  the Non-Borrower has legal
authority to represent the Borrower's estate and has a legal right to remain in the
property after the borrower's death (title to property).

Request a copy of the Non-Borrowing Spouse requirements today while the Borrower
is still living to make sure the Non-Borrowing Spouse will qualify.

On June 12, 2015 HUD issued Mortgagee Letter 2015-15 after years of litigation.  The
intention of the court ruling (in favor of Non-Borrowing Spouses) was to allow the
Surviving Non-Borrowing Spouse to remain in the home for life after the passing of the

ML 2015-15 is vague and leaves the interpretation of the policy up to the individual
Servicer.  Consequently each servicer has different requirements to approve the NBS
for the Mortgagee Optional Election (remain in the property for life). The one
consistent requirement among Servicer's is the NBS must show they have a legal right
to remain in the property and have legal authority to represent the Estate.

With the Release of the Mortgagee Letter HUD and the Servicer should have sent a
notice to all Borrowers as to what they need to do to secure the NBS Option for their
Surviving Spouse before the Borrower dies.  Since this is not happening it is often
difficult, costly and can even prevent the NBS from exercising the option to remain in
the property for life.

The notice should say: 1. The Borrower must provide legal authority for the NBS to
represent the estate (upon death of the borrower). Easiest way is to have a Trust with
the NBS as a Trustee or Successor Trustee.  This automatically gives the NBS legal
authority to represent the Estate and convey title (in most States).
2.  The borrower should change title to the property to include the NBS (before
death).  Quit claim is a common way to do this.

This varies State by State and the borrower should consult with an attorney to
understand how to do this in the most cost effective way while the borrower is living.

If you are a same sex couple where one partner was a Borrower at loan origination
and the other a Non-Borrower the Mortgagee Letter states you must be married
before the death of the borrower.  Please call me if you have any questions.  

It's important for the Borrower and NBS to understand how to meet all the
requirements of the NBS option in advance of the Borrower's passing.  The Servicer
has the legal right to offer the NBS Option or to Foreclose and will choose the easiest

HUD claims it is completely up to the Servicer to approve the NBS application (or to
foreclose).  BUT approx. 40% of NBS applications submitted to HUD for assignment
have been denied by HUD.  I believe this is against the intention of the court ruling and
certainly is the opposite of HUD's public statement that it is completely up to the
Servicer to approve the application for assignment.  

I give a free assessment of your reverse mortgage and inform you of the requirements
to exercise the Non-Borrowing Spouse Option.