7 day cooling off period for reverse mortgages
- California Civil Code Section 1923.2 has been amended to require a cooling off period of seven (7) calendar days from the date of counseling as evidenced by the date on HECM Certificate of Counseling. In order to comply with the mandated cooling off period, lenders and originators will not be permitted to order services (credit, title, appraisal, etc.) or assess fees to the borrower until the eighth day after the date of the counseling. An application can be taken prior to the 8th day as long as no services are ordered. As an example, the following chart illustrates the first day that services can be ordered during the first week in January 2015 and going forward:
|Day||Date of Counseling||Day||Date of Counseling|
|Thursday||January 1, 2015||Friday||January 9, 2015|
|Friday||January 2, 2015||Saturday||January 10, 2015|
|Saturday||January 3, 2015||Sunday||January 11, 2015|
|Sunday||January 4, 2015||Monday||January 12, 2015|
|Monday||January 5, 2015||Tuesday||January 13, 2015|
|Tuesday||January 6, 2015||Wednesday||January 14, 2015|
|Wednesday||January 7, 2015||Thursday||January 15, 2015|
Contact me to discuss your specific scenario. You can also check out our Reverse Mortgage Loan Calculator to see how much money you may qualify for under the government insured FHA reverse mortgage product. You can learn everything you would ever want to know about reverse mortgage here too. I really do love talking to people about the HECM loan product, there is so much to learn and know about this very powerful loan. I love to do public education seminars and have taught more people in Sonoma County about the reverse mortgage product than I can count.
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA).
Loans made or arranged pursuant to CA Bur of Real Estate – Real Estate Broker – Broker#1279902, California Bureau of Real Estate (877-373-4542). NMLS #1279902