Your home loan may be the largest and most important loan you get in your life. Be aware of your rights before you enter into any loan agreement.
You have the RIGHT to shop for the best loan and compare the charges of different mortgage brokers (licensed individuals or firms that mediate between buyer and seller) and lenders.
You have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees.
You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.
You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement.
You have the RIGHT to ask your mortgage broker to explain exactly what they will do for you.
You have the RIGHT to know how much you and the lender are paying the mortgage broker.
You have the RIGHT to ask questions about charges and loan terms that you do not understand.
You have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance.
You have the RIGHT to know the reason if your loan was turned down.
You have the RIGHT to ask for the HUD settlement costs booklet "Buying Your Home."
For other helpful information visit the Real Estate Settlement Procedures Act (RESPA) web page at www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm. For other questions, call (800) 569-4287.
As a potential reverse mortgage borrower the number one place to begin the process will be with a HUD approved housing counseling agency. By law, housing counseling is required for any borrower who wants an FHA Home Equity Conversion Mortgage (HECM) also known as a reverse mortgage. HUD requires you to get this counseling before any costs are incurred for the loan. Your lender will advise you of the names of counseling agencies in your area. The counseling may be face to face or by telephone. Lenders are not allowed to recommend a specific counseling agency.
HUD's Reverse Mortgage is a federally-insured private loan. It's a safe plan that can give older Americans greater financial security. Many seniors use it to supplement (add to) their social security payments, meet unexpected medical expenses; make home improvements, and more. Since your home is probably your largest single investment, it's smart to know more about reverse mortgages and decide if one is right for you! If you are interested in a reverse mortgage, beware of scam (rip-off) artists that charge thousands of dollars for information that you can get free from HUD!
To report fraud or abuse in the reverse mortgage program, contact FHA's Resource Center at 1 (800) 225-5342.
Homeowners aged 62 and over can get counseling by calling a member of the national HECM counseling network that is approved by HUD. Please click here to go to this external site: www.hecmresources.org/network.cfm
Increasing demand from senior citizens for HUD's HECM product has put pressure on the counseling industry to meet the demand for required counseling. To make quality HECM counseling available for everyone, HUD allows certain counselors to provide face-to-face and telephone counseling nationally. You can contact these agencies to obtain HECM counseling:
National Foundation for Credit Counseling (NFCC): (866)698-6322
Money Management International (MMI): (877) 908-2227
American Association of Retired Persons (AARP): (800) 209-8085
