Its not at App time, the HECM Expected rate is locked at either the time the FHA case number is secured or at the closing of the loan (if within 60 days) whichever is lower. The App could be taken a month before they get their counseling completed and the lender gets the counseling cert in hand, so its not at time of App.

I really appreciate the effort that Jerry Wagner and IBIS expends each week in analyzing the changes to each week’s interest rates. It saves me both time and effort. John, thank you for making it available to all of your readers.

Jim says it’s too bad “originators do not take the time to read and understand the documents they provide seniors”

Well…
I can’t speak for all originators, but I’ve worked for and returned to a small company; and I’ve done Reverse Mortgages for M&T Bank; and my experience is that most originators do read and work at understanding the docs, and their nuances.

However, sometimes we do get our attention diverted by title/deed problems, wells, septic tanks, property lines,clients that fool around about getting the counseling, who like to “mull things over”, or have family fights about the RM, or at anytime put things on hold to contact the attorney, neighbor, or there’s an illness in the family, or a trip that was scheduled, or the grandchild’s going to have a line in their kindergarden play that’s off in Minnesota…and the senior will be back in two weeks.

It’s a different world; few seniors feel the same anxiety of the forward mortgage applicant about locking in the rate, or anxious about getting the loan done by a certain date unless they are in financial difficulty, or really care about the rate (they maya be retired engineers) – that much -since they aren’t paying it back anyway, and have the mind set that they aren’t moving, so, hey.

Gloria