This Page is for: Escrow Officer, Title Companies, Mobile Notaries, Lawyers, CLU's, ChFC's, Real Estate Agents, Financial Planner's, CPA's, Insurance Agents and CFP's .
This first section is for: Escrow agent and Title Company officers closing Reverse Mortgages
Key Terms and their use
MCA = Max Claim Amount:
The lesser of the current (for 2013) lending limit or the value of the property as indicated by the appraisal.
This is the figure from which you calculated the lender's title insurance premium.
Base on the rate, home value, age of youngest borrower and possibly Zip Code.
UPB = Unpaid Principal Balance
This basically is the initial loan amount.
Key Differences of Reverse Mortgage compared to normal Forward Mortgage like you close everyday
2 Notes and 2 Deeds
FHA Reverse Mortgage transactions have 2 Notes and 2 Deeds and both get executed and recorded. 1st Note & Security Instrument is for the LENDER and the 2nd Note & Security Instrument is for Sec. of the HUD. So this have FHA already be in place to protect the borrower in the event that the servicing lender is not there in the future to fulfill it's functions and meet it special obligations.
This Site is Not Tax or Legal Advice. Always consult Legal Counsel and Your Tax Advisor. Content of website are the sole opinions of Robert Fulton & does not necessarily reflect those of Fulton Financial Consultants, Inc.'s Investor/Lenders or insurance companies or other product vendors. Because one of my product lines is that of Reverse Mortgages I must state the following: If the borrower does not meet loan obligations such as taxes and insurance, then the reverse mortgage will have to be repaid." The Terms, benefits and features shared as accurately as possible on best efforts basis and subject to change without notice. Therefore please discuss any decision making specifics with Robert Fulton 360-222-3236. "This material is not from HUD or FHA and has not been approved by HUD or any government agency."