Safeguards
» Education:
Before you make the decision about a Reverse Mortgage, your Security One Lending reverse specialist will take the time to educate you about the product options and answer all your questions. You control the pace and when to proceed.
» NRMLA:
Security One Lending is a proud member of the National Reverse Mortgage Lenders Association. We subscribe to the NRMLA Code of Conduct and Best Practices Standards created to protect seniors from predatory lending practices.
» BBB:
The Better Business Bureau has recognized Security One Lending’s commitment to quality service to our clients with an A+ rating – the highest available!
Safeguards of the Reverse Mortgage Programs
Although all reverse mortgage products available in the marketplace work with similar protections, the most popular program is the Home Equity Conversion Mortgage, or HECM, regulated and insured by the U.S. Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA).
Among HECM’s consumer safeguards are several important features:
» Fixed & Capped Interest Rates
Reverse mortgage programs allow a borrower to choose a fixed or adjustable interest rate. Fixed programs have a fixed interest rate for the life of the loan. Adjustable programs offer the security of capped interest rates and often provide the highest amount of money to the borrower.
» Limitation on Fees
Fees associated with the program are limited by HUD regulations and may be financed as part of the reverse mortgage. This means a senior is not required to incur ANY out-of-pocket expense to get a reverse mortgage.
» Independent Counseling
Before a reverse mortgage application can be processed, the prospective borrower must talk with an independent counselor. Both HUD and AARP oversee a network of counselors who are responsible for verifying that the borrower understands the reverse mortgage program by reviewing the loan details and answering questions.
» Lifetime Security
As long as a borrower resides in the home, maintains taxes, insurance and general upkeep, a reverse mortgage cannot become due during the homeowner’s lifetime. With no required payments and a lifetime right to occupy the home, a reverse mortgage can provide protection against unforeseen future circumstances that is vastly safer than other loan alternatives.
» No Prepayment Penalty
Although the loan is not due and payable until the homeowner permanently moves out of the home, it can be paid-off or refinanced at any point with no additional fees or costs.
» Asset Protection
The HECM is a “non-recourse” loan. Title to the home always remains with the borrower. When the loan becomes due, the lender is repaid the sum of funds advanced plus the reasonable accrued interest, but never more than the value of the house. If there is remaining proceeds, it belongs to the homeowner or their heirs.
