HECM Advisor Program

Overview

Pennsylvania Banks, Credit Unions, Saving and Loans, Mortgage Brokers and other licensed lenders who are not FHA approved can participate in the origination of Home Equity Conversion Mortgages with AFC Reverse Mortgage and earn a portion of the origination fee. AFC Reverse Mortgage, Inc. is looking for a small number of quality small banks and other mortgage lenders to participate in our HECM Advisor program. A HECM Advisor is a licensed mortgage lender or broker that serves as a financial advisor, educates applicants, and offers them any necessary resources regarding reverse mortgages. The Advisor serves solely in the role of a representative and financial advisor to the HECM applicant and is not be involved in processing the loan. The HECM Advisor may earn up to 25% of the origination fee.

The Advisor must be licensed to offer first mortgage loans in Pennsylvania, unless exempt from licensing, and must be independently retained in writing by the applicant to provide assistance for a fee. A copy of the fee agreement will be included in the HECM file submitted to HUD, and any fee paid to Advisor will be disclosed on the HUD-1. In Advisor loans the origination fee to the lender is reduced and the fee paid to the Advisor is not an additional charge to the borrower.

Roll of Advisor

1. Perform services listed in more detail on our “HECM Advisor Certification” form, including educating the applicant about reverse mortgages and the financial implications of a HECM loan on the borrower, providing information on HECM lenders and keeping in contact with the applicant throughout the process.
2. Have the applicant sign the “Applicant Assistance Agreement” (Advisor- Borrower agreement)
3. Fill out the “Submission Form” to submit identity information on the proposed borrower to chosen Lender.
4. Fill out the “HECM Advisor Certification” form indicating what services Advisor is performing.

Why Choose AFC Reverse Mortgage

At AFC Reverse Mortgage, reverse mortgages are our only business. Our staff has processed and closed hundreds of FHA HECM loans since 2003. At AFC we process and close our loans locally through our Whitehall, PA office using local title companies and appraisers, which results in a process that is simple  and convenient both for the borrower and our Advisors. Because we control the process, we usually close within three weeks after HECM counseling. At AFC you and your customer are our top priority and your borrower is truly a name not a number. We promise to treat your customers with the courtesy and professionalism you expect. And since we at AFC offer only reverse mortgages, we are truly your reverse mortgage provider and not your competitor. AFC Reverse Mortgage. Local. Knowledgeable. Professional. Experienced. Convenient.

Legal Basis

FHA Title II Mortgagee Approval Handbook 4060.1 REV-2 (issued August 14, 2006) in paragraph 2-18 states that non-FHA approved mortgage brokers can participate in the origination of Home Equity Conversion Mortgages. FHA Mortgagee Letter 2006-30 (issued December 18, 2006) was issued in part to clarify that such participation is permitted. The program offered by AFC Reverse Mortgage has been reviewed by the same Washington, DC law firm that has set up similar programs for several national lenders.

Want to Learn More?

Give us a call at 1-888-821-4076 or 610-437-7230.