Loan Simple
Reverse Mortgage Process

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Note: As of February 1, 2021 We can close reverse mortgages in Colorado, Nebraska and Tennessee. More states are forthcoming. 

 

 

 

What is the referring loan officers role?

As little as a name and number

Provide us the prospects name, contact information and quick description why you think a reverse is right for them. 

We will handle all communications and the entire process

You will still get a referral fee.

 

 

 

What if i want to do more?

Absolutely You can!

and you will receive a referral fee as well! 

What can I do for the borrower?

  • Work with them on initial application via Blend, Via Encompass or via a hand completed 1003
  • Pull their credit
  • Gather documents
  • Attend and coordinate meetings to go over documentation. A reverse professional will attend meetings alongside you via phone, zoom and / or in person as possible or desired
  • Continue to represent Loan Simple with the borrowers in person
  • Handle all followups
  • Attend Closing

We will work together throughout the process

let us know your desired level of involvement

 

 

 

 what is the process?

The entire process are in the steps that follow:

  • Cultivate the Client and Pre-Qualify them for Eligibility
  • Application via Blend, Manually via Encompass or Manual 1003
  • Pull the borrowers credit
  • Gather Documents
    • Most recent two years 1099’s or W2’s
    • Social Security Award Letter
    • Any Pension Documentation
    • Driver’s Licenses or other non-expired State or Federal ID for all borrowers
    • Most recent 60 days of bank statements
    • Statement of Account for HOA (if any) showing 24 months of dues with NO LATES.
    • Homeowners Insurance Policy / Declarations Page
    • Current Mortgage Statement (if any)
    • Credit Card Authorization form for Appraisal Costs and HOA documentation (if required)
    • Any, and all, trust documents (if required)
    • Any, and all, Power Of Attorney (POA) documents (if required)
      • IF A POA EXISTS PLEASE TALK WITH US IN PERSON FIRST ABOUT THE SPECIAL REQUIREMENTS REGARDING POWERS OF ATTORNEY.

 

 

 

what are the eligibility requirements?

  • One Borrower Must be 62 years of age or older
  • We must have a completed 1003, either via Blend, Encompass or by hand
  • Consent and Authorization must be given
  • We must pull the credit of all persons on the loan
  • Spouse MUST be on the loan and Title
  • If they are in a community with an HOA they must show 24 months of being current on their HOA Dues
  • They MUST NOT be behind on their Property Taxes
  • They MUST NOT be behind on their Homeowners Insurance
  • They will be responsible for paying
    • Their annual Homeowners Insurance
    • Annual Property Taxes
    • Any yearly or monthly HOA dues.
    • REMEMBER There are NO ESCROWS

 

 

 

What is required of the borrower?

  • Understanding the Reverses can be a long and complicated process with lots of documentation
  • Completed Application
  • Approval to Pull Credit
  • All requested / required documentation
  • Signed Proposal Packet
  • Complete a Reverse Counseling Class
  • Send the completed counseling certificate to us
  • Signed Application Packet
  • Attend and Sign Closing
  • NOTE: ALL SIGNINGS, INCLUDING CLOSING, CAN BE DONE SAFELY AT THEIR RESIDENCE WITH COVID PROTOCOLS IN PLACE.

 

 

 

What can be done with a reverse?

There are many ways to leverage a reverse mortgage. Here are the primary ones:

  • Home Purchase
  • Refinance with Cash Out at closing
  • Refinance with Cash Out at closing AND a Line of Credit
  • Refinance with Cash Out at closing AND a monthly draw (called a tenured payment)
  • Refinance with Line of Credit Only
  • Refinance with Line of Credit and Tenured Payment
  • Refinance with Tenured Payment Only.

 

 

 

how are amounts available determined?

There are two ways the eligibility amounts are determined. 

  • Age of Borrowers
  • Appraised Value of Property

If there is/are existing mortgage(s) that/those will be paid first and the remaining equity will be used to determine amounts available for Cash out, Line of Credit and/or Tenured Payments.

 

 

 

pay for the appraisal

We will obtain a credit card authorization form and will charge the appraisal on this card. The amount varies and currently all Reverse Appraisals Can be exterior only if the borrowers prefer. 

 

 

 

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