Reverse Mortgage Servicing
Most reverse mortgage companies originate the reverse mortgage and then have other companies specializing in servicing loans take over that aspect of the reverse mortgage loan. Make no mistake about it, “all reverse mortgage servicing companies must adhere to the same HUD guidelines and regulations”.
Some reverse mortgage companies will try to WOW the potential client by emphasizing the company they represent, services all their own loans. It’s really no advantage to the borrower, the company just makes more money this way.
The real important issue is, don’t be charged too high of a servicing fee, $30.00 a month is normal, if you see a $35.00 monthly fee you may be loosing $500 to $800 out of the money available to you at closing.
The best way to know if a representative is looking out for you is to act “uninformed” and see what costs he gives you. If you receive the maximum origination fee and a $35.00 monthly service fee, you would do much better with us, putting more money in your pocket.
Call Now (630) 440-5187 or (773) 423-7578