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Your Reverse Mortgage Analysis
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The Process of Getting a Reverse Mortgage
Awareness | Action | Counseling | Application/Disclosure
Processing | Closing | Disbursement 1. Awareness | Consumer (i.e., senior homeowner or adult child) learns about Reverse Mortgages from article, ad, direct mail, word-of-mouth, etc. | |
2. Action 3. Education Consumer gets required free counseling. Counseling must be received from an approved housing agency.
The Counselor explains different options and makes sure Consumer is eligible for a Reverse Mortgage. | |
4. Application / Disclosure Consumer fills out application and selects payment option(s).
Lender discloses to Consumer estimated total cost of the loan, as required by Federal Truth in Lending Act.
Consumer provides Lender with required documents. | |
5. Processing | Lender processes loan, ordering appraisal, title work, lien payoffs, etc. |
6. Closing | Following approval, closing (signing) of loan is scheduled. Closing papers and exact figures are prepared. Closing costs are normally financed as part of the loan. | |
7. Disbursement Consumer has three business days Right of Recission after signing papers in which to cancel, afterwhich the loan is disbursed. The Borrower may use the loan proceeds for any purpose.
The Servicer disburses payments to the Borrower and sends periodic statements. | |
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