Page 13 - Your Guide to RM Booklet

Consumer Safeguards

A number of safeguards have been established to help ensure
that lenders are doing their jobs right, and that you and
your family have a thorough understanding of how a reverse Pick up the phone and call AAG today
mortgage works. The following consumer safeguards were
instituted for your protection:

Limited Fees Safer No Pre-Payment Penalty Greater Retirement Security

HECM origination fees are HUD established limits on the You can choose to repay the Financial advisors are including
regulated by HUD. HECM amount of money you can loan at any time without the reverse mortgage growing
reverse mortgage costs may borrow during the first year incurring any additional costs. line of credit as part of their
vary among creditors and loan of your loan. This may ensure clients’ long-term retirement
types. home equity proceeds last strategies - this can help stretch
longer. other investments longer into
retirement.

Counseling Non-Recourse Loan

All reverse mortgage applicants undergo independent, third- HECMs are non-recourse loans, which means the lender cannot
party, HUD-approved counseling. This ensures that borrowers collect more than the value of the home if the loan is called due
understand the financial implications associated with their and payable. For example, if the home value drops below the size
reverse mortgage, what their obligations are and what other of the loan, you’ll never incur a cost that exceeds the value of the
alternatives may be available to them. AAG strongly believes in home at the time of repayment.
third-party counseling because it helps borrowers understand
their options.

Your Guide to a Better Retirement 7