Posted by MonicaFL on 6/29/07 9:08am
Msg #197709
I attended the Seminar on Reverse Mtg
to find out about the "NEW" things that are happening. Just passing along information that was given out and thought that some of you might be interested.
First of all, it was presented by Financial Heritage. The first thing I asked him was, "are you the broker or the lender?" He stated, no we sell the mortgages to the banks. With this statement in mind, maybe you will see why I was confused about some of the other things he said.
We were told that that you could have a reverse mortgage on your "primary" residence (which we all know) but then you could have one on your "2nd" home. I asked him what was the residency requirement on the 2nd home and he said "you have to live there six months and 1 day". Well, I said to him how can that be your second home and live there six months and 1 day and have a reverse mortgage on your first home which is supposed to be your primary residence - I would think that you would be required to live in your primary home for six months and 1 day. He then stated that there was no occupancy time for a rvmtg on a "primary residence". (I was on my way to being totally confused by that time) Then he spoke about the new "fixed interest rate" rvmtg. He showed a slide showing that with a fixed interest rate, the rate would be approximately 3% higher and the customer would get less money. (That makes sense). However, he pushed the the adjustable interest rate.
He also stated that the federal government is the lending institution NOT the bank. I asked him if that was the case then why the need for two mortgages? He didn't answer that question. I also asked him about the note which shows a "due or "'ending' date" which is usually 40 years. He proceeded to tell me that there were no "ending" dates on the note. (well, all the ones I have done do have an ending date which is usually 40 years).
He then proceeded to tell me that there no longer were charges for flood certification, appraisal fees and no pest control fees and that you would no longer see those fees on the HUD. I asked him how long this has been in effect and he stated "about six months". (Funny, I just did a rvmtg closing monday and those fees were there).
He also brought up about what he called a "re-reverse mortgage" - which means that "you can apply for another reverse mortgage. And, by doing this, you can probably get more money than you originally got. And, another good thing about this is that the broker cannot charge you the 2% fee again, that the Federal Government has stated that the most they can charge you on a re-reverse mortgage is $3500".
There is another seminar going on today by a different company today and I plan to attend that one and see how they present it and I will ask the same questions.
OTR - He wanted my business card which I gave him. then, during the course of a small discussion between the two of us, he proceeded to tell me that his wife is a notary and she has notarized a lot of his closings. He also stated that she can notarize his signature. I just about flipped out. I told him that according to Florida law, a notary cannot notarize the signatures of a family member - and he stated, very very strongly, oh yes she can and anytime I need my signature notarized, she does it for me. She has been a notary for a long time and she knows what she is doing. Well, with that statement under my belt, I left!!!!!
P.S. - I called Financial Heritage and asked them about the time frame on the note, and they were very adamant in saying that the FHA guidelines do not permit an ending date on the note. This really confused me since I thought a "NOTE" is a "promise to pay" and usually, there is a time frame by which a note is to be paid in full. (I have tried to look up the FHA guidelines but couldn't find them). I also asked him about the statement that the bank doesn't lend the money but the "lender" is actually the Federal Government. I still don't understand this since there are two mortgages and two notes - usually one is for the lender and one is for HUD. If someone out there can explain that to me I would be forever grateful.
Will let you know what the other seminar people say, if anyone is interested. Monica
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