NRMLA’s New Consumer Guides Aim to Increase HECM Knowledge
The National Reverse Mortgage Lenders Association (NRMLA) recently released three free consumer guides about HECM reverse mortgages. The goal of the three guides is to increase knowledge and eliminate misunderstandings that exist regarding HECM reverse mortgages. The guides are available on NRMLA’s website and its consumer site.
“Reverse Mortgage Self-Evaluation: A Checklist of Key Considerations” is a six-page guide that asks consumers to consider seven questions that will help them determine whether a reverse mortgage is right for them:
1. How do you intend to use your reverse mortgage loan proceeds?
2. Do you fully understand your obligations as a borrower under a reverse mortgage?
3. If you are married, will your spouse be a co-borrower on your loan?
4. How will your reverse mortgage loan be repaid?
5. Do you receive assistance under any government programs that are based on your current income?
6. How long do you and your spouse plan to remain in the home?
7. Have you considered other strategies to supplement your retirement income?
NRMLA advises that it’s important to share the self-evaluation guide should be provided to consumers before they complete an application so they can discuss the information with their loan counselors.
“What You Need to Know About Your HECM After Closing” details the loan servicer’s role, the borrower’s obligations, default issues, non-borrowing spouses, foreclosure and other important topics and rules regarding HECM reverse mortgages.
“What Do I Do When My Loan Is Due?” guides borrowers and family members through a five-step process they can follow when the reverse mortgage loan is due and payable. The guide explains the maturity events that can trigger repayment, provides advice for surviving spouses, children and other heirs and offers a glossary of helpful terms.