Financial Assessment Impact on Reverse Mortgages

The Financial Assessment has now been in place since April 27, 2015.  Since that time, we have been adapting to the new credit rules to determine a borrower's "willingness and capacity" to qualify for a reverse mortgage.  At first, many of us feared that the new guidelines would adversely impact the industry and our ability to offer reverse mortgages.  Though it has only been approximately four months since implementation, I have personally experienced that the change has not been earth shattering.  Preparation and setting client expectations has been the key to a smooth transition.  We have been able to gain the cooperation of our clients in obtaining necessary documentation to support income and credit by preparing them of what is to come during the processing of their reverse mortgage loan.  This may be new to the reverse mortgage industry, however many of these clients have had to provide similar documentation in the past for traditional mortgage financing so it is nothing new to them.  We still need time to obtain a representative sample of the impact of Financial Assessment, however so far the information gathering and approval process is going better than many expected.

For more information on reverse mortgages and other related topics contact:

Rick R. Rodriguez
Certified Reverse Mortgage Professional, CRMP
NMLS# 473353
Toll Free (877) 500-0454
Local (702) 460-6222