Successfully closing reverse mortgage transactions can be an intricate and complex process. With ARS, you’ll have the advantage of an experienced team that understands the settlement requirements and intricacies of HECM and proprietary closings. Put our specialized knowledge to work for you to get your transactions closed the right way – with minimum hassle and no unpleasant surprises down the road.

As a full-service title and settlement company dedicated to reverse mortgage closings nationwide, our experienced team provides security and peace of mind for lenders, mortgage brokers and senior borrowers that their transactions will be completed accurately and on-time with a process that’s efficient and easy.

Why should you use a reverse specific title and settlement company?

Experience

Disadvantages of working with non-reverse title company:

• Not understanding what a reverse mortgage is and how it works
• Learning curve while processing a live transaction causing a bad experience for the borrower
• Lender or broker processor takes on the burden to teach local escrow officer
• Turn times are longer because they have to research, learn and then respond
• Unfamiliar with property types limitations (Condo, MFH and Land Leases)
• Limited to one locations vs. nationwide coverage and experience

Fee and Calculations

Reverse specific amounts and terminology:

• Fee accuracy to match HUDs at Doc Draw
• Transfer taxes apply or are exempt because it is a reverse mortgage
• HECM lending limits vs. proprietary products calculations and fees
  • Insured amount
  • Loan amount
  • Principal limit
  • Mortgage/DOT amount at 150% or higher

Funding

Recording documents before disbursing is not required for reverse transactions and can cause funding delays.

Relationship

We have excellent relationships with all parties involved in the closing of a reverse mortgage.

• Lenders
• Nationwide Notary Roster
• Processors
• Attorneys
• Underwriters

Documents

Reverse mortgages have significant differences in the types of documents:

• Two Mortgages/DOTs
• HUDs vs. CDs
• 1009 vs. 1003 borrower applications
• Legal reviews of Powers of Attorney, Trusts, and other estate planning documents
  • POAs, Trusts, Probate, etc. are very common in reverse mortgages

At the Closing Table

Notaries without reverse mortgage experience can cause delays or a negative experience:

• Longer signings
• Large closing package
• No e-signatures
• Missing or incorrect signatures
  • Trustees and Attorney in Facts
• Mobile notaries to facilitate the signing at the borrowers home

Tips to Improve the Closing Experience

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Written By: Mylene Marcelo, Title Manager/Title Officer

When a couple gets married, the assets owned by the married couple will depend on the different rules of the different states where they live in. There are some states which recognize the concept of tenancy by the entirety and there are some that do not. Tenancy by the entirety or TBE is a type of ownership only available to married spouses.

When Harry met Sally and decided to get married in New York, they will have to meet certain conditions for TBE in order to apply to their property. They will have to be married when they acquired the property. They will also need to own and possess the property and will need to have interest equally. Both of their names should be listed on the same deed and must hold title to the property at the same time. These conditions comprise the unities of time, title, interest, possession and marriage and they all must be met before an asset can fall under the dominion of TBE.

How does TBE end? It can be by gifting the property to another party, by divorce or by death. In some states like Virginia and Florida, TBE offers debt protection when a spouse dies as long as they were married and never divorced. ARS will normally require an executed Continuous Marriage Affidavit from the surviving spouse and proof of death. The legal document that ARS will accept as proof of death will be an original or certified copy of the death certificate. Not all states will offer TBE protection such as New York, New Jersey and Pennsylvania to name a few.

TBE is a large concept that needs to be discussed further, and it is subject to the state’s recognition and specific laws. Since it varies from state to state and every situation is different, it is best to contact our Underwriting staff equipped with the knowledge and experience in dealing with any TBE issues that may arise in your transaction.