FHA – HUD Reverse Mortgage loans were designed in 1988 by the U.S. Department of Housing and Urban Development based on the lobbying efforts of various Senior advocates including AARP to allow seniors to have safe access to home equity without fear of losing a home due to missed payments. Reverse mortgages and the lenders that offer them are heavily regulated by Federal and State agencies for the protection of Seniors.
Good Faith Estimate and Limit on Fees
Lenders must provide you a Good Faith Estimate (GFE) at application shows each required closing cost. Remember most and in some cases all costs of the loan are paid when the loan is paid off, not upfront like other loans. In general all closing costs are regulated on FHA reverse mortgages by the U.S. Government and guarantees borrowers against unnecessary or excessive fees.
Independent Counseling Required
To help determine if a reverse mortgage is appropriate and insure that seniors are fully informed of all options, borrowers must obtain independent counseling before closing. Lenders are required to provide a list of six phone counseling agencies and six that you can visit in person. In general, the counselor will discuss the following:
All allowable closing costs and loan options
Terms and financial implications of a reverse mortgage
Other financial options VS a getting a reverse mortgage
Warnings of using proceeds for investments
Why ReverseMortgagePro - Mortgage.Shop LLC is Safe
We are a FHA - HUD and State Approved Lender and our founder is one of the original pioneers of the reverse mortgage field, he has personally closed more reverse mortgage loans since 1992 then most any other person in the country. All of our employees have years of experience and are held to the highest requirements for ethics and continuing education.
Better Business Bureau and NRMLA
We are an Accredited Member of the B.B.B and carry its highest grade of A+. We are also a proud member and supporter of the National Reverse Mortgage Lenders Association and follow their strict Code of Ethics.
