Reverse Mortgage Division within National AMC

What is a Reverse Mortgage?

A Reverse Mortgage is a loan available to home owners of retirement age (at least 62 years of age), enabling them to a portion of their home’s equity. The home owners can draw the mortgage principal in lump sum, by receiving monthly payments over a specified term or over their (joint) lifetimes, as a revolving line of credit, or some combination thereof. To qualify, the borrower must meet the age requirement of at least 62 years old and they must occupy the property as their principal residence. There are no income or credit requirements because no payments are required on the mortgage. However, the applicants must take an FHA approved counseling class and present a certificate of completion of the course before starting the loan process. This class is to serve as a safeguard for borrowers to ensure they completely understand the reverse mortgage product.

How does a reverse mortgage loan benefit the borrower?

The borrower can use the proceeds from the loan at their discretion and are not subject to income tax payment. Title to the property remains in the name of the homeowners, to be disposed of as they wish, encumbered only by the amount owing under the mortgage. The loan only becomes due when the borrower dies, sells the house, or moves out of the house for more than 12 consecutive months. Once the mortgage comes due, the borrower or heirs of the estate will have an option to refinance the home and keep it, sell the home and cash out the equity, or turn the home over to the lender. If it’s turned over to the lender, the borrower or the heirs have no more claims to the property or equity in the property. The lender has recourse against the property, but not against the borrower personally nor against the borrower’s heirs.

Here are 5 ways that we, as an appraisal management company, are able to better serve our reverse mortgage lender clients?

As an appraisal management company servicing a reverse mortgage lender it is our responsibility to be familiar with these loan types and the lenders requirements. Read further to see how we position ourselves to be a resource for our clients as we help facilitate their appraisal requests for these specific products:

1. 1.  Our Reverse Mortgage Division is staffed with friendly and knowledgeable team members. This is extremely important and beneficial to the borrower as we are viewed as an extension of the reverse mortgage lender.
2. 2.  We network with professional FHA certified appraisers in every county in every state. Our appraisers are ready to take on the FHA appraisal requests from our reverse mortgage clients.
3. 3.  Our Reverse Mortgage Division has a strong understanding of reverse mortgage lender requirements and FHA requirements for report review.
4. 4.  Specific instructions are provided to the appraiser prior to the inspection taking place to ensure all client requirements are touched upon at the property.
5. 5.  Flexible payment options are made available to reverse mortgage client and their borrowers.

If you are a Reverse Mortgage Lender and you are looking for an appraisal management company to facilitate your appraisal needs properly and with a clear understanding of your business, call Nationwide Appraisal & Settlement Network today. We look forward to working with you and your team.