Hello all.
I am wondering if anyone can give me some insight on what the signing agent’s role is in a reverse mortgage application? What takes place at the appointment?
Thanks,
Rebeka
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It is basically like doing a regular loan application except with reverse mortgage documents. The lender or contracting company sends you the docs (either edocs for you to print or physical copies), you take them to the borrower, get them signed, collect any other documents the lender requests and drop the package. You are not expected to “explain” anything any more than you would for a regular loan application, and just like with any other type of signing the borrower needs to sign their name as it is printed. If you have never seen reverse mortgage documents before a lot of it will look strange to you.
The “basics” of a reverse mortgage is that it is a home equity loan for persons age 62 and up that the borrower does not have to pay back as long as they are alive and living in the home as their primary residence, the lender gets the home in the event of the borrowers death (or stops living in it as their primary residence) and the lender can sell the property to recoup the loan costs. The borrower can also pay off the reverse mortgage if they choose to do so, or the borrower’s heirs can pay off the loan if they choose to do so to keep the home.
There is a requirement that the borrowers go through a counseling session (this is usually done by phone) with a certified 3rd party company that explains the reverse mortgage process to the borrower which is great for the borrowers because they have someone to explain the process to them thoroughly and impartially. The thing to remember is that the signing is with elderly people so they MAY be hard of hearing / write slowly etc so be prepared to be patient. IF the borrower does have questions during the signing you should be provided with a phone number for a contact at the mortgage company or with the contracting company that can answer those questions, but honestly in my experience most of the folks don’t really have a lot of questions.
I think that’s it! It’s really not hard, just different documents that you may not have seen before, but not hard at all! Follow the instructions from the lender / contracting company and you will be just fine!
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The first response to your inquiry was very thorough. Just want to add a few more thoughts. The Reverse Mortgage is a two part process. The first appointment is the Reverse Application. There is nothing to Notarize on these docs. Your primary responsibility is to make sure the docs get signed completely and correctly. You also collect any additional documentation that is requested by the lender. An important document to watch for is the HECM Counseling Certificate (HECM - Home Equity Conversion Mortgage). This is a required document that must be signed, dated and sent back with the docs. Sometimes it is contained within the documents and other times, the borrowers have it to give you. Following the application appointment, the Reverse Mortgage Closing would take place about six weeks later. Sometimes, the company that called you to do the application will reach out to you first and check your availability to do the actual Closing. You would Notarize the final Mortgage Docs. After a couple of times, you’ll feel comfortable doing them. Do NOT settle for low ball offers on these. Senior Citizens like to take their time through this process and you should expect to be with them for 1-1/2 to 2 hours. Good Luck!
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thank you for your detailed reply!
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thank you so much for the help. I feel comfortable going into this signing. : )
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They are also quite large packages, so low fees don’t work.
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Make sure you’ve quoted an acceptable fee - these can take as long as a regular refi or the final signing, sometimes longer; I’ve been at these appointments for sometimes 2 hours while folks talk, ask questions, dig up pertinent documents to return - then I’ve had those that had a good LO and they have everything ready for me.
My fee for these is the same as my fee for a final signing. In addition, many companies say they’ll pay when the loan closes - that is not acceptable to me. What if it never closes (which believe me, has happened) - I would request payment in advance for these appointments. But that’s just me.
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What about the SAFE Act??? Are you a licensed mortgage person?
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Why do you feel that the SAFE act applies here? The SAFE Act mandates nationwide licensing and registration system for residential mortgage loan originators, but we aren’t loan originators and you don’t have to be a loan originator to witness a person signing application documents.
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Beside licensing - are you acting like one or an attorney (which you are not) giving advise!! There is a very fine line.
Berylgb39 no one said anything about giving advice to the signers or acting like an attorney so I dont know why you feel the need to bring that up. I was giving rlsigner a brief overview of how reverse mortgages work, she is not a client or a signer so it is perfectly ok for me to do so. No one on this thread said anything about explaining or giving advice to the SIGNERS of the application. In fact I SPECIFICALLY said that she is NOT expected to explain anything and if the signers do have questions for her to refer them to their mortgage company. I have been a successful notary signing agent for a decade, I know what I can and cannot do so your “advice” is unwarranted in this instance.
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