Posted by Deanna Jones on 1/25/10 1:41pm
Msg #319445

Reverse Mortgages

I just found out that the closing I agreed to do is a reverse mortgage. Can someone please give me a crash course in closing this type of loan. I know very little about them. So if you could please tell me how the paperwork may differ from a refinance and any general information you may have about them. Thanks!!

Reply by Lynne/OR on 1/25/10 1:51pm
Msg #319447

A lot of the paperwork looks the same, but of course, the terms of the loan are very different. If you look in the closing package (it's usually in the middle) there is a form called the "Payment Plan- exibit A" I like to pull this one out and put it on top, because it gives the borrower a great outline of the principle limit, deductions from principle limit (closing costs, payoffs) Net principle limit, initial draw (if any) and amount left to draw off of, etc. I find that for reverse mortgages, the HUD is not a clear outline of what's going on, so this form really helps clarify things for me. As you might know, there is also 2 notes and 2 deeds w/reverse mortgages (one for lender, one for HUD), I explain this to borrower so they know why they need to sign two copies Hope this helps!!

Reply by Lee/AR on 1/25/10 2:17pm
Msg #319450

Lynn made good points. Now--Breath... you'll be fine. Most RM signers have been educated to within an inch of their patience. You may need to schedule a bit more time than normal as SOME are just slow-signers.

Reply by Sylvia_FL on 1/25/10 2:31pm
Msg #319456

Not that they are sometimes slow signers. Sometimes the notary coming to their home is the only person they have had "visit" in a while.
I always scheduled RM's when I had no other signings after them so I could spend time with the borrowers. I have met some very interesting people that way. One lady was almost 90 and she had flown her own plane, and when she was 80 her and her sister had driven across the USA in a Winnebago. I really loved doing RM's more than regular signings because of the interesting people I met and the tales they had to tell.
One elderly gentleman insisted on meeting me outside a restaurant so I could follow him back to his house as he was sure I wouldn't be able to find it otherwise.
When we got to his house he had a large batch of zeppoli on the counter. Apparently he was well known in his neighbourhood for his zeppoli. He said he had made this batch for me to take back for the rest of the girls in the office. I didn't have the heart to tell him that I didn't have an office.

Reply by Regal/NC on 1/25/10 2:20pm
Msg #319451

Your fee should be higher for a Rev Mort assignment! n/m

Reply by Sylvia_FL on 1/25/10 2:33pm
Msg #319457

Re: Your fee should be higher for a Rev Mort assignment!

I think that depends on the lender. I did a lot of Wells Fargo RM's and the paperwork was no more than a conventional loan package as to size - sometimes smaller than some of the regular loan packages.
But there was one company, forget which one, and the package was HUGE!!! I should have charged more than my regular fee for it, but I had (wrongly) assumed that all RM packages were the same size as the Wells Fargo ones.

Reply by JandB on 1/25/10 2:26pm
Msg #319453

Agree with all of the above. Have the LO's phone number with you. The easiest way to get in trouble with these loans is by trying to explain things.

Reply by SueW/Tn on 1/25/10 3:08pm
Msg #319465

If you're in Georgia you can't close a loan unless you're an attorney.

Reply by Lee/AR on 1/25/10 3:28pm
Msg #319472

Nice catch, SueW. I missed the "GA" part, too. n/m

Reply by Linda_H/FL on 1/25/10 3:45pm
Msg #319476

She is an attorney... n/m

Reply by MW/VA on 1/25/10 4:08pm
Msg #319483

Re: She is an attorney...

I'm sure that's why "GAatty" has atty in his usename.

Reply by John Schenk on 1/25/10 8:53pm
Msg #319528

Never had a problem with a R/M loan, other than they can run a little longer at time...had one that ran 4 hours, but that was extreme. I told that story on here before LOL

I would imagine that the most difficult part of these for you, as an attorney, would be attending that closing AS an attorney. I imagine that since you are an attorney that folks would expect you to answer questions as an attorney, and not just as a notary. Never really followed the prior posts to a big degree that were for attorney signing states, as it didn't affect me. Things are busy, and you zero in on posts that you think may affect you, or that you're interested in.

In non-attorney closing states, we don't have the issues that I would imagine confront you as we can't give any interpretation of the docs for fear of UPL complaints. You, on the other hand, are an attorney and I just wonder how that works....are you expected to give a legal opinion of each of the ramifications of the docs, if asked? That would truly be much more difficult, if that is the case. Even if I had a J.D. behind my name, I couldn't do that here. I've seen'em, I've read some of them, but I sure couldn't deliver a legal opinion on any of them, even if I were an attorney. I would think your closing, and the attorney states closings, are far more difficult than mine. GAatty probably posted about it on here before, but I didn't read it on threads specifically about Atty. closings. It IS interesting, and I'll try to search further for my own edification.

Best of luck on your closing! I would guess that you can still tell them that there is a 3 day RTC and they should call their LO for any questions concerning the loan they have. Maybe it's not so different, but I surmise you would have to be in a position more like a LO or Title officer, and be prepared to answer their questions, but really don't know. One thing I "think" I know you could tell them is that any questions concerning the terms of their loan would have to go back to the lender. This is the first time I've really thought about it from an attorney standpoint, and what I might have to do in that situation.

You'll do fine! Just watch out for a daughter or son at the closing on a RM. That's probably who will field you the hardest questions, in my past experience. About 50% of my RMs always had one of the BO's children there. I found the child to be a pain in the ass, but never had one that didn't go ahead and sign, nor one that didn't close.

JJ