How are you protected?

We are all aware of scams, pitfalls, unscrupleous lenders and basic thieves. I want to share with you how the Government has worked with lenders to protect you before you can even have a Reverse Mortgage. following is some usefull information:



Government Loan


Reverse Mortgage loans were designed by the U.S. Department of Housing and Urban Development (HUD) in the late 1980's from the lobbying efforts of AARP. Most of the Reverse Mortgage loans made today are insured by the Federal Housing Administration (FHA); a government supported mortgage insurance program.


Counseling Required


(To determine if reverse mortgage is appropriate)
In this U.S. Government program, HUD requires that you meet with a HUD approved credit counselor, who is approved to do reverse mortgage counseling.



The counselor's job is to educate you about reverse mortgages, to inform you about alternative options available to you given your situation, and to assist you in determining which particular reverse mortgage product would best fit your needs.



This counseling session is at no cost to the borrower and typically takes 45 minutes to one hour.
Borrowers must obtain independent counseling prior to obtaining a Reverse Mortgage.



Counseling is only available from approved, independent, third-party sources and the counseling is designed to highlight and discuss:

1. Financial implications of obtaining a Reverse Mortgage.
2. Other options that may exist including housing, social service, health and financial programs.
3. Role and relationship between the homeowner and the lender, financial advisors, estate planning services, etc.
4. Allowable costs and expenses associated with Reverse Mortgages.

Typically it takes 1 hour for the counseling & the person receives a counseling certificate upon completion.

Limit on Fees

The U.S. Government regulates all fees involved in a reverse mortgage and guarantees borrowers that there are no "excessive fees" in a reverse mortgage.

Consumers have additional sources of nationally recognized providers that can be accessed for additional information including:

A.A.R.P. www.aarp.com/revmort
National Reverse Mortgage Lenders Association http://www.reversemortgageoftexas.net/www.reversemortgage.org
The Department of Housing and Urban Development (http://www.hud.gov/)

If you have any further questions, please contact me.

Sincerely,

Reverse Mortgage Man