banker

HECM Loan Closing

I attended a closing yesterday with my borrowers and the lender’s attorney.  The paperwork and the time required to wade through it all has reached the point of insanity.  More than 125 pages of documents and 1.5 hours are now needed to get to the end of this process.  Disclosure after disclosure after disclosure…. and then the re-disclosures.

My favorite among all the documents my borrowers sign is what I call the “Nanny Statement”.  This is a piece of paper from the lender explaining to the borrower that they really should be careful about making any investments with this money.  In the opinion of some, this is more than a little condescending and simply another effort to avoid future legal action.  There are now so many silly disclosures that borrowers can’t help but be confused.  No matter how carefully we prepare them, too many are overwhelmed at closing.

This particular borrower ran his own business for 45 years and commented that he had never been through such an experience.  He was no dummy… and we held the closing in the nicely appointed offices of his certified financial planner who had referred me.  There was plenty of brain-power at the table.  I wonder how many borrowers would walk away from the closing ceremony if I was not actually present to answer all the questions that come up?  I think I would.

Your Loan Officer

Some borrowers get trapped into doing everything over the phone because their originator is located 3,000 miles away calling from a cubicle.  Face to face, one-on-one with the borrowers during the initial interview, the actual application, and the final closing are crucial phases of the reverse mortgage process.  It is the cornerstone of this business.  Choose your originator very carefully.  Eliminate anyone who does not ordinarily travel to your home and personally attend your closing.

In my office later in the day I received a phone call from the borrowers to thank me once again for attending the closing with them.  These borrowers had grown to trust me over the course of our relationship and I assured them that I was always available to answer more questions (there will be more) and help with any problem or issue that might surface.

Author – Robert H. Irving, CSA
Senior Reverse Mortgage Consultant

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