|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.
1.5% Max Claim Amount.
Maturity Date = Youngest borrower's 150th birthday.
Standard Exceptions on Title Policy:
These do not apply to HECMs and must be removed.
Reverse Mortgages can be used to purchase homes.