Steps to a reverse mortgage
Steps to a Reverse Mortgage
  1. Up Front Education
  2. Counseling
  3. Application, Fees & Disclosure
  4. Loan Processing and Underwriting
  5. Closing
  6. Disbursement of Funds
  7. Life of Loan Issues
  8. Settling the Loan Account
Life of Loan Issues

After the loan closes, a loan “Servicer“ manages the account and is responsible for disbursing monthly payments to the homeowner (if this payment option is chosen), advancing funds from the line of credit upon request, collecting any voluntary repayments and sending periodic statements.

The Servicer is also responsible for monitoring to make sure that real estate taxes are paid, insurance is maintained on the home and the borrower continues to live in the property.

A Servicer who is a NRMLA member will always be available to make sure you are aware of the current loan balance and all costs, as well as answer any questions you might have about your reverse mortgage.

A reverse mortgage borrower is responsible for staying current on his/her real estate taxes and homeowner's insurance. As a borrower, you can pay the taxes yourself or establish a set-aside account and have the Servicer pay them for you. If you go into arrears on your taxes and insurance, you take the chance of going into default. When your loan is in default, your Servicer will request that HUD deem the loan due and payable. Additional counseling is available to those who find themselves in default. Your Servicer will help you find a counselor. A counselor will work with you to try to set up an acceptable repayment plan.

The Servicer has internal systems in place to inform and alert you if there are any tax and/or insurance issues with your loan and will notify you promptly if you fall behind on either responsibility.

Servicers have also implemented safety nets that are intended to prevent borrower fraud, identity theft or outside parties taking undue advantage of borrowers.

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Equal Housing Opportunity Lender. Not a commitment to lend. Golden Equity Mortgage is a division of Land Home Please consult your financial adviser. Land Home Financial Services 1355 Willow Way, Suite 250, Concord, CA 94520. Company NMLS #1796 or Click here for a list of state licenses