Letter of Explanation: A letter signed by the borrowing AND the non-borrowing spouse explaining their reason for excluding the non-borrowing spouse from the loan. This letter must be notarized at or before the closing of the loan.
Attorney Letter: A letter from a licensed attorney stating the attorney explained to the non-borrowing spouse that, upon the occurrence of any of the following events, the loan must be fully repaid and the lender may foreclose on the property and evict all resident, including the non-borrowing spouse.
The letter must also state the attorney explained and the non-borrowing spouse expressed his/her understanding that he/she could never become a borrower on this loan if removed from title, even if they were later put back on title (but the NBS can refinance into a new HECM once 62 and with enough equity).There is no guarantee of a refinance in the future. The non-borrowing spouse must waive any right, including those believed to arise from homestead or community property rights, to remain in the Property or to contest a foreclosure arising from an uncured default by the borrower(s). The non-borrowing spouse must acknowledge an understanding of the consequences and consent to the spouse moving forward with the loan.
- Non-Borrower Certification – All non-borrowing spouses must submit the fully completed, signed Non-Borrower Certification.
- In Community Property States – Non-Borrowing spouses must submit a fully completed Credit Authorization Form.
This policy does not affect the existing requirement that the non-borrowing spouse attends Home Equity Conversion Mortgage (HECM) counseling, and submit a signed counseling certificate.These new regulations ensure smoother transactions for all those involved. Give us a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. We do not pressure those who inquire nor is there an obligation for our services, we are simply here to help.