Read an interview with the author of this course, Yan Ross.
Chapter 1 - Introduction to Reverse Mortgages
Background and History of Reverse Mortgages
HUD’s Predominant Role in Home Equity Conversion Mortgages
Magnitude of Market
WHY Reverse Mortgages
Benefits & Caveats
Ethical Considerations
Chapter 2 - The Homeowner/Borrower
Eligibility and Appropriateness Considerations
Myths and Facts
Important distinction must be made between “Eligible” and “Appropriate.”
Not everyone who is eligible for HECM is also an appropriate user of this program.
Subchapter on how the HECM ends –Illustrative re Appropriateness
What happens when the homeowner no longer resides in the home.
Chapter 3 - Reverse
Mortgage Lenders
Who they are
HUD qualifications
Proprietary/Private Programs
Chapter 4 - Payout Choices
Lump Sum, Monthly Payments, Line of Credit, Combination
Comments on Restrictions on Use of Proceeds
Elaboration of Appropriateness Standards
Chapter 5 - Calculations of Payments
Factors: Age of youngest homeowner – Life Expectancy
Interest Rate– Fixed versus Floating
Existing Mortgage Debt
Maximum Loan – by County
COSTS – Including Total Annual Loan Cost (TALC)
Chapter 6 - Mortgage Credit
Analysis (Homeowner)
Factors – NOT Credit Report or Score
(Other than debt on certain federal programs)
Actuarial analysis – longer life expectancy + lower advance amount
The cost and value of the HUD guarantee
Chapter 7 - Property Analysis
Reverse Mortgage as an Asset-based loan
Local Market Limitations and Conditions
Declining Market language in appraisals (2008 market conditions)
Expected market cycle – Expectation that it will recover during life of
RM loan
Chapter 8 - Application Process
Step-by-Step Walk-through of what the Loan Originator needs to accomplish
Listing of forms, disclosures, preparation for homeowner counseling
Appendix with Forms
Chapter 9 - Borrower Counseling – HUD Requirements
Counselor Requirements
Counseling Session Guidelines
Substance of Counseling Program
Appendix with Checklist
Chapter 10 - Closing and Endorsement
Procedures
Document Checklist
Inclusion & Payment of Mortgage Insurance Premiums
Appendix with Forms
Chapter 11 - HUD Role in Servicing & Assignments
Relationship between HUD and Lender
Practical Application of Servicing Practices
Appendix with Regulations
Chapter 12 - Private/Proprietary Programs
Representative Lenders and Programs
Reasons for Using or Not Using non-HUD Reverse Mortgages
General Appendix - Federal
Authorizing Statutes
Summary HUD Regulations
News and Updates