Appraisal management company Landmark Reverse released a new way to help lower the upfront cost of ordering appraisals for reverse mortgage borrowers.
The appraisal assurance program allows borrowers to pay $200 upfront and the remaining $350 at closing in escrow. Borrowers can still pay the normal $450 fee for an appraisal but the assurance program is meant to help ease the burden for seniors who are hesitant to pay the full fee upfront for a reverse mortgage appraisal.
“Not all seniors have that kind of money, this gives them an an opportunity explore a reverse mortgage without the large upfront costs,” said Erik Richard, COO of Landmark Reverse.
Appraisers are still paid their normal fee by Landmark to ensure there is no incentive for to do anything different when conducting the appraisal said Richard. For brokers to be eligible for the assurance program, the fallout rate for appraisals can be no more than 35%.
Landmark is an approved AMC with Generation Mortgage, Urban Financial, Sun West, Security One, and Genworth. According to Richard, 90% of the companies business comes from the reverse mortgage industry.