Posted by tann on 4/2/10 8:47am
Msg #330090

Reverse Mortgages

Has anyone every dealt with a Reverse Mortgage Application and Closing?

I have an assignment for today for a Reverse Mortgage Application and it seems that
there is nothing for me to notarize, just get the borrowers signature...any help would
really be appreciated.


T-ann

Reply by Grammyzoom on 4/2/10 9:12am
Msg #330091

You are right. Generally when taking applications there is nothing to notarize. Be prepared though, these applications can take a long time to complete. There is a lot of information that needs to be entered.

The good thing is that you get to know the people before you go out for the actual loan document signings and once you do the apps they will usually call you when the docs are ready. I have posted here before that I really enjoy doing the RMs but you do have to plan to spend extra time with the borrowers.

Reply by Tamiko Miles on 4/2/10 9:23am
Msg #330092

Thank you for responding to my question. That is a good thing that you get to know the borrower prior to the closing documents...however, with the application, this is an elderly lady that will be signing...what is my role in helping her sign the documents since I'm not notorizing anything, and can't answer any questions?? A little confused with this process.

Reply by Grammyzoom on 4/2/10 10:04am
Msg #330099

Basically you will be asking her questions and perhaps completing some of the forms for her. As you can see there is some personal and financial information required. Just make sure that all of the information is there and that she signs where indicated. You do not need to explain much. My experience has been that the LO's on Reverse Mortgages are very good at educating the borrowers about these loans and it is not really your job to have to explain anything other than the process to her.

The one thing I do however, is to help put the borrowers mind at ease about what they are doing. I find that a lot of elderly borrowers are afraid of RMs because of the past. Years ago these loans were not reputable. A lot of people were scammed into borrowing and then turning the money over to so called Estate Planners. They were not regulated as they are today. So if you can just let the borrowers know that these loans are safe and they are not being scammed you will be doing a good thing. These loans can be really great for those who may not be able to keep their homes without these loans.

I have probably done over 200 of these loans and a few stand out. One woman had a mortgage payment of $800 a month. Her total income was $900 a month. She drove an elderly gentleman to his appointments etc. to pay for her food. When we finished signing the documents and she realized that she would no longer have a house payment she laid her head on the table and sobbed with joy. It is these experiences that make you feel good about what you do.

Reply by Linda_H/FL on 4/2/10 10:33am
Msg #330106

I'm sorry...I disagree here

All the RM apps I've done the initial docs are all filled in - it's just a matter of gathering all signatures and supporting documentation (cc of ID and SS card, bank statements, mortgage statement if applicable, homeowners' insurance, pension/annuity/social security award letters or statements, maybe W-2's, tax returns, etc. etc.)....

Unless you're a loan originator/officer IMO you should not be helping them complete forms - that's up to the borrower and their LO/counselor and should already be done ... nor should you be reassuring the borrowers that the loan is safe and they're not being scammed. That's not your job! You cannot render an opinion about the loan, the program, the particulars ... unless you're their loan officer or you work for the lender.

Get the package, print it out...get all signatures and supporting documentation and return to hiring party - refer all questions to their loan officer, their counselor if one has been appointed, or get your hiring party on the phone to help answer....

Also, allow about 90 minutes to 2 hours for these - they usually do take more time as the signer is elderly AND chances are they're not going to have copies ready of the documents you need to send....

Reply by Yoli/CA on 4/2/10 11:50am
Msg #330115

Totally agree with Linda and disagree with Carol.

Tamiko, I suggest you let your hiring party know that you are not familiar with RM's. They may have a short training for you to take or refer you to one before you head out.

Please don't do the elderly a disservice.

Reply by Grammyzoom on 4/2/10 12:39pm
Msg #330122

I am not sure what you agree or disagree with. Yes a good deal of the information should be completed when you get the docs, however this is not always the case and there is always some information missing. It is our job to assist the borrower in completing all of the necessary forms and to make sure that all required signatures and dates are there.

And I am surprised that you disagree with the fact that it is helpful to put the borrower at ease when they are extremely nervous about taking our this type of loan. I personally feel it is helpful to let the borrower know that these loans are legitimate and are not the same Reverse Mortgages that existed in the early years. Don't forget these folks are old enough to remember those loans! Todays RMs are carefully regulated and the borrower has every right to know that. I have also found that there is very little explanation when it comes to the final documents . It has been my experience over the past few years that the LOs who do the RMs are really good at explaining the loans to the borrowers and I have found that trying to explain everything to them only confuses them. The only thing I generally go through with the borrower is the breakdown which lists the principal limit on loan, costs involved, credit line if any and cash they are going to get at COE. I guess we all have our own way of handling our business and God bless us all!

Reply by Grammyzoom on 4/2/10 12:40pm
Msg #330123

Now, say what you want I have signings today and am GONE! n/m

Reply by Linda_H/FL on 4/2/10 1:09pm
Msg #330130

I thought my post was fairly clear...

It is beyond our scope to assure the borrower that their loan is legitimate. *I'M* surprised you'd overstep this way. This is way outside the realm of the notary and the signing agent UNLESS you're being contracted as a loan originator or loan counselor. Set them at ease, yes - let them know that this is only the beginning of the process, not the final paperwork, and they'll have ample time to have all their questions resolved both with their loan officers and through their counseling....assure them it's a legitimate loan? How can you do that with any reasonable certainty?? You can't.

That's what I disagree with..for one...secondly, we are not the loan originator...we are not supposed to fill out the forms for them or tell them how to fill out the blanks. Point out what needs to be completed BY THEM, make sure blanks are completed...make sure docs are signed properly...that's it.

I'm a notary public....I'm a signing agent....and that's what *I* do....keep it within the scope of my authority and don't overstep my bounds.

Reply by Yoli/CA on 4/2/10 1:44pm
Msg #330132

July 2009, Bancserv offered Bank of America's Reverse mortgage Training module and testing, which Linda H/FL basically outlined in her original post on this thread.

Don't know if it's still available, however, those who have no experienced with reverse mortgages may consider looking into that or something similar. I know I found it informative when I took it.

Reply by JanetK_CA on 4/6/10 10:31pm
Msg #330573

I fully agree with you, Linda. Just because a RM is regulated doesn't mean that it's the right thing for any given individual. Not only do we not have enough information to ever know if that is so, just like with any other loan signing, we should be a neutral party and not make any comments about the suitability of the loan. As most who have experience with these loans know, there are significant up-front fees with RMs and plenty of downside risks. Hopefully these issues have been carefully spelled out and the pros and cons carefully weighed with the borrower(s) beforehand, but we have no way of knowing that.

I agree that putting the borrower at ease is a good thing, but not by overstepping and making an affirmative statement that could be interpreted - especially by a senior - as vouching for the appropriateness of the loan in question.

Reply by Laura_V on 4/2/10 12:47pm
Msg #330124

And ppl wonder why we love being a notary. Great post, GZ n/m

Reply by Gary Boehm on 4/2/10 10:52am
Msg #330108

Reverse Mortgages

Most of the times, MOST of the information is already filled out but never all of it. Always seems to be some date or number left out somewhere. When there is another family member present it REALLY helps it go much faster - they know where "mom" keeps all her "old paperwork".

Yes, plan on it taking at least an hour and a half for the application part, and the same for the subsequent signing. Hopefully you will get that job too!