It is extremely important to RMF and the entire reverse mortgage industry that borrowers and their families understand their obligations. As with any mortgage, the borrower has certain obligations under the loan:
- Keep the home in good condition
- Keep current with property taxes and insurance
- And with a reverse mortgage, the borrower(s) must live in the home as the primary residence (there is an annual certification)
The details of the borrower obligations are discussed during the independent counseling session, and a counseling certificate is not issued until the counselor certifies the prospective borrower’s understanding of the loan terms and conditions. Failure to meet loan obligations can lead to the loan becoming due and payable.