Reverse Mortgage Closing tips to Prevent or Overcome Potential Roadblocks
The last thing you want to do when closing a loan is a concrete wall. With all of the preparation that goes into originations from the borrower's end and the originator's end, there is still room for error.
During what should be a pretty exciting time and fairly streamlined process, there can be hiccups. However, there are some steps that can be taken to help combat these roadblocks that may arise.
A recent Reverse Mortgage Daily piece highlights five tips that could make all the different when closing a HECM. Taking the time to complete these steps could prove for a much more hassle-free closing for you and your client.
The report suggests that the loan originator be present at the time of the closing. By doing so, the originator leaves little room for error when it comes to the borrower and closing documents.
The report also suggests supplementing the aforementioned tip with a "pre-closing" call. This is where borrowers will be able to ask and receive answers to any lingering questions that may come up during the process.
Oddly enough, the third tip from RMD involves making sure your borrower carries ID with them at the time of closing. A state-issued ID is necessary at closing and in the past there have been times where a borrower is unprepared.
RMD continues its list of tips by urging loan originators to rely on their knowledge of reverse mortgages instead of relying on the notary. Notaries are not reverse mortgage experts and won't be able to fulfill the duties of a loan originator or have the answer to HECM questions for the borrower.
The final tip from RMD involves clarity. As a whole, the reverse mortgage industry has come under fire for not properly explaining the product to the borrower. This causes confusion and could further delay the closing process if a borrower is unclear on an aspect of their reverse mortgage.
Each of these rules seem fairly simple to follow and should already be a part of your own checklist when closing a reverse mortgage loan. To learn more about these tips in-depth, click on the image above.
