1. Awareness 2. Action 3. Counseling 4. Application 5. Processing 6. Underwriting 7. Closing 8. Disbursement 9. Repayment

1. Awareness – Interested party learns that Fairfield Mortgage provides reverse mortgages.

2. Action – Homeowner seeks additional information by calling a reverse mortgage professional, submitting info, or email,. All initial questions and concerns can be addressed at this time.

3. Counseling – Individual seeks free counseling session over the telephone or face-to-face depending on his/her needs. See counseling session of this website for counseling requirements, phone number, and location information.

4. Application – After the counseling is complete and certificate is received an appointment with a reverse mortgage professional needs to be scheduled. At the application all other questions and concerns are addressed. The individual will select the appropriate payment option(s) and reverse mortgage program. When scheduling an appointment, a reverse mortgage professional will give you a list of the documents that will be needed.

5. Processing – The processing phase of a reverse mortgage works much the same way as a forward mortgage without the credit and income qualifications. An appraisal, termite inspection, title report, and credit report (to verify no outstanding liens exist) are ordered. Any necessary changes to the homeowner’s insurance policy are also made at this time. Any structural defects and termite issues will be discussed with the customer if they are found. The processing phase takes between 10-15 days.

6. Underwriting - The underwriting phase is a tedious and lengthy risk assessment phase completed by an underwriter that is qualified by the Department of Housing and Urban Development (HUD). Expect to be updated once or twice during this phase. No news is good news when an underwriter has the file. The underwriting phase takes anywhere between 20-35 days.

7. Closing - A real estate attorney is required to close the reverse mortgage transaction in most states. The borrower will receive a call to schedule a closing any time Monday or Wednesday thru Friday between 9 a.m. and 4 p.m. During this call the borrower can change the way he/she wants to receive the funds if necessary. The closing will typically take anywhere from 45 minutes to an hour at a local real estate attorney’s office.

8. Disbursement – The homeowner has a three day right of rescission period to cancel the reverse mortgage transaction between closing and disbursement. After the three-day period, the closing attorney will cut the lump sum check for pick-up or mailing. If a credit line is requested the funds will be deposited into the account and a servicing booklet will be mailed to the homeowner within a week or two. Withdrawal request forms will be included along with contact info and other information. Term and tenure payments will be mailed the first week of every month. Direct deposit is available for the homeowner during closing or through the servicing booklet.

9. Repayment – The loan amount plus any accrued interest will be due and payable once the final homeowner no longer occupies the property. Repayment can be done one of two ways; selling the home to payoff the loan or refinancing back to a forward mortgage with a monthly payment. After the sale or refinance any left over equity is retained by those entitled.

* If you have any questions regarding the reverse mortgage process that are not answered above, please feel free to contact us.