1st Reverse Mortgage USA

Please see attached word document.Please let us know if there are any upload issues.Text version below.=============== Response [redacted] : “Recently I applied for a refinance on my reverse mortgage ” Response: As [redacted] noted she applied for a refinance of her current reverse mortgage The Department of Housing and Urban Development (HUD) requires as part of her original reverse mortgage process she received counseling from an independent third party such as a local HUD-approved counseling agency, or a national counseling agency, such as AARP, National Foundation for Credit Counseling, or Money Management International By law, a counselor must review (i) options, other than a reverse mortgage, that are available to the prospective borrower, including housing, social services, health and financial alternatives; (ii) other home equity conversion options that are or may become available to the prospective borrower, such as property tax deferral programs; (iii) the financial implications of entering into a reverse mortgage; and, (iv) the tax consequences affecting the prospective borrower’s eligibility under state or federal programs and the impact on the estate or his or her heirsThis was not the first time [redacted] had applied for and accepted a reverse mortgage.? She had met with the loan officers and received independent third-party counseling on reverse mortgage options, process and financial implications ? [redacted] : “My loan officer said I was approved for $16,based on the appraisal that was conducted and I accepted.? It was my understanding that $16,was the final figureA few days later the loan officer called back and said the amount was reduced to $12,due to the appraisal which contradicts the original amount that was quoted.” Response: The difference between the estimate of $16,available at closing and $12,available to [redacted] at closing was due to the change in the amount to pay off her current mortgageThe amount was originally estimated at $258,198; the actual amount $262,261.? A difference of approximately $4063.? ? [redacted] : “One hour prior to closing, the loan officer called a third time and informed me the amount was reduced once again to $10,as the mortgage company wanted insurance to be paid upfront for year.” Response: The Department of Housing and Urban Development (HUD) requires reverse mortgage borrowers to maintain taxes, insurance, HOA fees and property maintenance.? [redacted] ’s annual home hazard insurance was paid at $1961.? This was not an additional charge.? This was her yearly mortgage hazard insurance.? This reduced the amount available to her at closing to approximately $10,500.? If this figure was unacceptable, she was not obligated to refinance her current mortgage and only had minimal expenses such as the appraisal fee.? Even if you are eligible, you are never obligated to get the loan? [redacted] : “At the time of the closing the person was min late and asked if someone had notified me and of course I did not receive a courtesy call.? My copies of the documents were not included and the closer apologized profusely and sates she would go back to the office to get copies and bring them back the same day.” Response:? As a standard in the mortgage industry, lenders use independent third-party title companies to close loans.? We rely on these third-party title companies to be timely and provide all documentation to the borrower.? ? Summary Response: 1st Reverse Mortgage provided a non-mandatory lender credit of $10,at the time of closing to [redacted] to assist her in meeting her financial desiresIt is very important to note:? ·? ? ? ? ? ? ? ? [redacted] choose to refinance her current reverse mortgage.? ·? ? ? ? ? ? ? ? If the amounts were unacceptable, she was not obligated to refinance her current mortgage and only had minimal expenses such as the appraisal fee.? ·? ? ? ? ? ? ? ? The changes in the original estimates of cash available at closing were due to the increased amount due to pay-off her current mortgage and paying her required home hazard insurance.? ? ·? ? ? ? ? ? ? ? In addition to the lender credits of over $10,000; she received approximately $10,at closingWe will review our internal policies and procedures as well as our third-party vendor policies and procedure to determine if there are areas which customer service can be improved in the future?