Consumer Protection

Consumer Protection


There are many consumer safeguards built into the reverse mortgage process. These safeguards include:
  • Required independent counseling by HUD-supervised experts.


  • Capped origination fees which can be financed in the loan to limit out-of-pocket costs


  • Equity sharing, the risky approach in which a homeowner could give up some portion of future value appreciation in exchange for more money, has been eliminated.


  • Because there is no maturity date, the mortgage cannot come due during your lifetime.


  • The HECM reverse mortgage has no prepayment penalty.


  • Through the "right of rescission", you can cancel for any reason within three days of the loan closing without paying a penalty.


  • The Total Annual Loan Cost., or TALC, is provided up front, so you know all of the costs of the reverse mortgage.


  • Interest rates are capped.


  • The amount due can never exceed what the home is worth, so you never have to worry about losing your house.


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Mortgage Associates, Inc. is an FHA-approved Mortgage Broker (78225-0000-4) and is licensed in Maryland, Virginia (#MB-1038), Pennsylvania and Delaware. Mortgage Associates, Inc. is not affiliated with, or an agent or division of, a governmental agency or a depository institution.

Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, and home value. As a broker, we can arrange a loan with a third-party lender, but we cannot make, fund, or approve mortgage loans or guarantee rates. Not all programs are available in all areas.

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