National Reverse Mortgage Lenders Association Pledge to Reverse Mortgage Borrowers
The mission of the National Reverse Mortgage Lenders Association is to educate you about reverse mortgages and to help you determine if one might be the right choice for you. We know your home is a prized possession of you and your family. We are sensitive to the fact that utilizing your home equity while you remain in the home is a major financial and emotional decision. All NRMLA members are required to honor a Code of Ethics & Professional Responsibility in which we pledge to serve you with integrity. Your best interests are our primary consideration.
-Know and comply with all State and Federal laws and regulations that protect reverse mortgage borrowers.
-Present you with the full range of reverse mortgage products available from our company.
-Clearly explain the terms, benefits and costs of each product we present.
-Inform you of your responsibilities as a reverse mortgage borrower including paying real estate taxes on time, keeping the property properly insured and maintaining the home in sound condition.
-Work with you and, if you request, with your family and financial advisors either face-to-face or on the telephone as frequently as you choose to educate you,answer any and all questions and help you assess whether a reverse mortgage might be beneficial to you.
-Explain the benefits of and statutory requirement that you have reverse mortgage counseling.
-Provide you with a list of HUD-approved independent housing counseling organizations that employ exam qualified counselors to serve you. The choice of the organization is yours and yours alone.
-Help you prepare for your counseling session to make it most effective by providing you with questions you might ask and information you should be prepared to provide to the counselor.
-Prepare loan comparison projections and an amortization table for the loan being proposed to review at your counseling session.
-Not charge any fees prior to the completion of mandatory counseling.
-Help you analyze your financial ability to meet your responsibilities under the reverse mortgage.
-Recommend that you seek professional advice if you are receiving assistance from SSI, Medicaid or other government programs.
-Recommend you seek professional tax advice when appropriate.
-Allow you to decide when to close on the reverse mortgage loan and not pressure you to make a decision.
-Provide you with opportunities during the loan process to change your mind and not take the loan.
-Pay off the existing liens shown of record, verify taxes are paid, and make sure that you have proper insurance upon closing.
Once you have a reverse mortgage, a NRMLA member loan servicer will:
-Notify you promptly if you have fallen behind in your tax and insurance obligations and direct you to seek advice in the event you are not able to fulfill your responsibilities.
-Keep you informed of your current loan balance and of all costs by providing regular statements detailing your account.
-Be available to answer any questions you may have about your account