Upstream is going live in the Bay Area, California.
Will the National Association of Realtors Play ball?

I see a few enhanced things that come of this— 

Information of the lockbox available to show:

1. number of showings per property
2. rate of showings
3. neighborhood activity
4. days of the week activity
5. time and motion study on everything from list to close to analyze how to do it better without the Realtors

The broker will be able to edit the listing and "fine tune." 

   If agent moves office broker can edit information.
   Broker adds or edits photographs and improves the narrative describing the property, and makes it compliant.
   Broker chooses which systems the information will be able to access. For example, if local MLS does not want to share on Zillow or Trulia this could be blocked.

BUT why oh why doesn't the NAR develop it's own OWN OWNED— Super Multiple Listing Data and control who gets to use it?      Why give away the milk for free?

Why doesn't NAR have a national directory of agents with detailed
profiles- face shot, video, number of closed sales, specialty, degrees, and more?

Why not only go to one place that the NAR controls rather than
giving away free steaks?

Reminds me of the riots in Los Angeles in 1992. I'm sitting in the parking lot of a multifamily building I own under construction. The donut store across the street is on fire. Neighborhood persons run down Bonnie Brae yelling to me, "C G go get your free steaks!" In his arms, a stack of meat and bottles of alcohol.

Does the NAR not see that free steaks harm the market?
What about consumer privacy rights?
Do we want a camera videotaping minor children walking through a listing?

Initially, this was sold to Realtors as Data Managment that brokers control, but this is not true.

Do you hear Zillow screaming? Nope. I hear them rubbing saddle soap on their hands for the roundup.

Do you watermark all your photos with your own URL? Better start.

Why open up the cattle gates in the Bay Area? Why not get all the nitty gritty
details on the highest priced best of the herd in the United States...

Alex Lange is CEO,  HBS Harvard Business School
Experience working for Big Box Banks
corporate headquarters is in Seattle Washington



How I chose my realtor

About four hundred business cards, twenty regular mailers in US post office, a few random door
knocked who I never met, and the home phone that I never answer full of agents for listing appointments.

In the end I made two appointments. Both top sales teams in the county. One does more print ads, the other does short "films" of homes. Friends who are Realtor agents were pouty, mad, and some made
mean comments. I didn't use agent who was listing side, as they were not straightforward. I didn't use a from the few Realtors who send me mortgage business because this was vital to my personal life and I wanted to be free to push for what I needed.
In the end I wasn't  totally happy with my choice. Agent office double ended deal and sent buyer to their mortgage guy friend who ended up being the biggest liar I ever worked with. JMJ financial sent out approval letter on a file that was never underwritten,. It took 70 days not 30 to close because the Loan Officer continued to lie.. I had two back up buyers who continued to call every day after day 30, I told escrow in writing the deal was cancelled. Nothing about the transaction was easy, because the mortgage broker was searching to find a place to fund the loan while making up stories every day.

In the end the Borrowers signed loan documents (without legal wait period of Closing Disclosure), funded and recorded on Friday without my approval as it was a Friday before a long weekend. I ended up paying for 5 days of interest ( $1409.90 cost) and was pushed out of the houe in a firedrill with no notice. I did not have opportunity to wait for moving van on Monday and hired 4 "guys" and rented trucks to move a 3700 square foot house. A nightmare closing.

Now time has passed. Agent who I like contacts me to make a recommendation on a real estate website. I think I'll wait another year before I post a rating as it won't be 5 stars.

So an insider who has sold and bought more than 60 residential and 19 commercial properties one would think got the best service, cheapest commission and best deal. No.
I paid full commission. I believe the buyer got the best service. I did accomplish my goal of down sizing but it was terrible awful painful when it could have been much better.

Listing agent did not listen to my needs. Seller can't make arrangements to move when buyer's loan was not final loan approved. JMJ financial it appears no longer has this guy but owner Ryan Gale is still there and he did not care one bit.


  • Congressional oversight of the CFPB?
  • Will Cordray quit before they fire him for failing to cooperate with suppoenas
  •  Financial CHOICE Act affect the CFPB's director?
  • What new rights does the ACT grant a party facing a CFPB enforcement action?
  • How would it change what the CFPB must consider in issuing regulations?
  • easier for a financial institution or service provider to obtain compliance advice from the CFPB?
  •  CFPB's authority to enforce UDAAP laws and regulations?

What would be the practical impact of all of these changes on providers of consumer financial products and services?
Are Major Changes to Consumer Financial Protection Bureau's Enforcement Authority Coming?
On June 8, 2017, the U.S. House of Representatives passed the Financial CHOICE Act, which, if enacted, reins in the Consumer Financial Protection Bureau (CFPB) giving Congress control over its budget and funding.The Act forces the CFPB to bring regulatory actions in a court of law, if asked; and removing the CFPB's authority with respect to enforcement actions involving unfair, deceptive and abusive acts and practices (UDAAP). The CFPB has been the most effective – and aggressive – federal regulatory agency we've seen in years. Its rules of the road have not always been clear, and many in the regulated community believe the agency has gone too far in bringing some enforcement actions. Enactment of the Financial CHOICE Act would significantly change how the CFPB enforces federal consumer financial protection laws, which would give some relief and more regulatory certainty to the regulated community.

Richard Cordray is rumored to be running for Governor of Ohio. He knows his days are numbered. There's a crew of Republicans who want him out, including our President
Democratic spin on Ohio
Washington wants to gut the CFBR 
Trash the bureau which fined so many big banks and stodgy bankers.
They collected billions in fines and the money stays with the CFBP
President Donald Trump can’t replace Cordray without firing him for cause, an act that carries its own political risk given the bureau’s popularity with the public 
Hensarling and other lawmakers are expected to file a resolution to overturn the rule under the Congressional Review Act
citing Consumer Financial Protection Bureau Richard Cordray for contempt of Congress


Custom Universal Phone Chargers

Custom with your LOGO for life

your wife's apple and you're samsung?
No longer need two different chargers
call now 949 784- 9699

Qty. 1  -  $15.00 ea.
Qty. 2  -  $10.00 ea.
Qty. 22  -  $10.00 ea. (+2 Free Units)
Qty. 100  -  $9.50 ea. (+5 Free Units)
Qty. 200+  -  $8.99 ea. (+10 Free Units)


Tell Equifax to Go To

Dear Rick Smith:

1550 Peachtree Street NE 
Atlanta, GA 30309
Equifax Credit Information Services, Inc
P.O. Box 740241
Atlanta, GA 30374

EQUIFAX CEASE and DESIST holding, keeping, recording, storing, compiling or sharing my personal credit profile I ask that you delete ALL information you have in your main frame, data storage, history and files within five days. I am opting out of Equifax for all time. Equifax failed me in your fiduciary duty to protect my credit file and private information.

I do not want any of your services. I do not want your crummy identification protection. NOTHING Equifax sells, does, warrants or compiles is safe because your management team decided you don't care about me or millions of Americans. Equifax profits from my credit profile without my authorization. I opt out of Equifax all together.

I never authorized you to save or compile information about me. I never gave you permission to keep my social security number, date of birth, driver's license, addresses, credit history and purchasing habits. 

Since you failed to maintain the cheapest of fire walls and exposed me to harm I will never trust what your business says or does. You waited to release the hacking only after key employees sold stock options, ramped up a huge marketing campaign, tried to hide the bad news in the hurricane news, waited months to tell America... shame on you RICK.

I am instructing all my creditors past and current to cease and desist from selling my information tapes to you. 

Please confirm you are doing this in five days. Equifax shared my information after I notified you not to share with affiliates. This is a violation of the Fair Credit Reporting ACT, Gramm-Leach-Bliley Act (GLBA), and a number of consumer privacy laws in my home state.

 more information read here: 


Alternative to HARP 3.0

Can't make it on a DU or LP Refinance HARP because your loan wasn't sold to Fannie or Freddie?
If you got your loan prior to May 31 2009 and have paid as agreed I may have a product which
lowers your rate.

No modification
No forgiveness of debt allowed
No cash to borrower more than $250
Refinance first trust deed only
No cash out
Primary, Second Home, investment homes okay up to 4 units
Minimum FICO score 620 middle mortgage

Call me to run numbers for you

Let's see what we can do to reduce your monthly payment!
Rates are down don't wait!

Terms and conditions apply

Carolne Gerardo Barbeau
(949) 784-9699 

NMLS 324982

this is not a 3.0 that everyone waited for the government to roll out, and now probably will not,
this is an alternative
call for the ins and outs
Come on down to the beach off Costa Mesa :)


Shame On Equifax

masked hackers 

I'm one of the millions probably everyone who has credit in the United States and Canada who Equifax gave my personal information to the Russian mob, crazy terrorists and North Korean hackers. Equifax offers a crummy credit monitoring service in exchange for this damage. Don't be stupid enough to go through the same website Equifax allowed bad guys to enter! Big E's credit monitoring is a joke. Big E does NOTHING to protect consumers. Bad guys can open credit in my good name even after I die thanks to Equifax. Right now Big E is in meetings coming up with a spin on how they SHARED your private life information with every bad guy.

This is the most serious credit breach ever disclosed. Equifax gave enough information for anyone to open credit, buy a house, buy a car, get into your bank accounts from now until the end of time.

I want to opt out of Equifax because they are sloppy, careless and continue stupid mistakes, but this is impossible because they hold us all hostage. But sorry, you can't opt out of Equifax.
The hacker got into Equifax's main frame information bank by downloading a person's credit report, then found a way to see what the Big E says is 134 million accounts. Assume Equifax lies, it's a billion records they hacked.

What makes me mad is Equifax kept this secret for months. Not until an employee whistle blower let it be leaked does Equifax come out and admit they gave my social security number, date of birth, driver's license number, home address, home phone and email to evil doers. Notice they let the leak out when everyone is watching news about the hurricanes, a marketing cover ploy. 

Short EFX stock

Here's what the CEO Rick Smith says:

 Equifax Inc. (NYSE: EFX) today announced a cyber security incident potentially impacting approximately 143 million U.S. consumers. Criminals exploited a U.S. website application vulnerability to gain access to certain files. Based on the company’s investigation, the unauthorized access occurred from May through July 2017. Cough cough the big E (one of the three American credit cops) have known about this for two months. 
The information accessed includes names, Social Security numbers, birth dates, addresses and, driver’s license numbers. In addition, credit card numbers for approximately 209,000 U.S. consumers, and certain dispute documents with personal identifying information for approximately 182,000 U.S. consumers, were accessed. As part of its investigation of this application vulnerability, 

BIG E you are despicable. 

For more information visit the FAQ sorry fu page"

Rick SMITH CEO you are fired. 

Here's the hacker's ransom request:
"Equifax executives sold 3 million dollars in shares taking advantage of their insider information after the attack," notes the hacker's website. "We believe that 600 BTC is a fair amount ransom."

The hackers ransom my (and probably your) information for $2,600,000 today. They say they will post all our information if not paid by the 15th of September.
Once personal information floats out there - anyone can buy a house, a car, get a credit card in my good name and I will be stuck fighting this until I die.
Updates on my request to force Equifax to erase my file and success with 2 banks agreed to stop selling my monthly tapes of credit information here:
Dear Hackers 
If I may address you. Please don't post my personal information, Go ahead and put up everything you know about RICK SMITH.  He sold stock options BEFORE this scandal was public as well as other key and highly paid employees. Report them to the SEC and CFBP for fraud, insider trading, and lack of fiduciary duty. Orange jump suits for Equifax employees.

If you are an Equifax employee who sold any EFX stock between May 2nd and today, the SEC is going to find you.
I assume a great number of employees knew -even the marketing department was ramping up campaigns and spend un-tethered dollars to fight the impending doom. The Big E was running ads on internet, television and radio in incredible volume in July and August to hide this scandal. Big E spend ten times their normal marketing advertising budget in July and August to cover up the mess.
Filings show three Equifax executives — Chief Financial Officer John Gamble, U.S. Information Solutions President Joseph Loughran and Workforce Solutions President Rodolfo Ploder — completed stock sales on Aug. 1 and 2nd
Laura Louise Wilbanks Chief Marketing OFFICER dumping EFX stock when CEO and management begin huge marketing campaign to save the ship BEFORE they release the bad news
Loughran Joseph Michael II 

Stock down to 99 today from high of 170 before the bad news
And now to relax your soul because you read this far:
Copyright © Caroline Gerardo September 2017 all rights reserved


How A Reverse Mortgage Helps Mom and Dad

Mom keeps her rose garden with a Reverse Mortgage

The advantages and disadvantages of a reverse mortgage

Mom or Dad get older and retirement income doesn't meet their basic needs. You may not have
the cash flow to send them money every month. They may be silent about the struggle to cut coupons and make ends meet.
He or She or both have equity or cash value in their home.
They want to stay in the home until the die.
Neighborhood friends, church and stores are familiar. There's a boy down the street who walks the aging dog. The family next door greets and waves each time the parents come or go. It's easy to know where you are going and walk the sidewalks. Familiarity over time makes a place become a home.

Change is difficult for the elderly. Packing mementos, giving away belongings and down sizing to smaller home does not always bring happiness. Living in assisted care facility seems safer to children who live far away because there are professionals to check on Mom or Dad. You sell your parent(s) on bridge, golf, and activities but the loss of privacy, loss of history and lack of freedom is hard for them to accept. For me not being able to garden would make me depressed.

A reverse mortgage allows Mom or Dad or both to stay in their home. Increase monthly cash flow pays for prescriptions, food, travel and little luxuries they couldn't previously afford. 

A reverse is a government loan also called a HECM - organized like a backwards Home Equity Line.

The home ownership obligations with a HECM are property taxes, fire insurance (or flood if in mapped area) and Homeowner Association fees due (if any). The borrowers keep the property in their own names. they can live there until they pass away. Remaining equity, is then distributed upon refinance or sale of the home.

The Disadvantages are:
They are very expensive and after October 1 2017 the Trump Administration is increasing the costs.

Find out all the rules, ins, outs, and take a loko at the new reverse mortgage. It might be a good tool for your family.
Terms and conditions apply

NMLS 324982
C G Barbeau

(949)  784 - 9699 cell

949 South Coast Drive # 240
Costa Mesa, CA 92626


HELOC Rates Rise

HELOC coming due in full?
Home Equity Loan rising?
Second Mortgage rate increase?
Home Equity Lines Of Credit are seeing rates rise
and becoming due in full as they age
Call me for solutions
(949) 784- 9699
NMLS 324982
Although rates on first trust deeds decreased this past two days, prime seconds will not
If you have a Home Equity Line of Credit (HELOC) you should be concerned where your rate and monthly payment will be in the future

$100k line at 5.25% = $522
Take the rate @ 10% = $877
Take the rate @ 18% = $1,507
Most of these lines of credit have a lifetime cap of 18%.
Prime Rates rise for HELOC

United States Average Monthly Prime Lending Rate  Forecast 2016-2020
Bank Lending Rate in the United States is expected to be 4.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations.
Looking forward, we estimate Bank Lending Rate in the United States to stand at 4.25 in 12 months’ time. In the long-term, the United States Average Monthly Prime Lending Rate is projected to trend around 5.25 percent in 2020, according to our econometric models.

Given the forecast, Home Equity Lines of Credit are getting pretty expensive. Get ahead of the curve and let us help you get into a fix loan.

Don’t gamble your home, moved to a fix loan!


California Property Tax Percentage

California Tax rates by County Assessor
Property taxes in California Counties percentages
Cities can have additional charges such as sewer, water, police,
California Flag 
fire department, vector control.
Mellos Roos taxes can also be added when a tract is new.
Mello Roos tax pays for the curbs, gutters, roads, parks etc
built to accommodate new construction areas. This additional
tax can be very expensive. Local taxes are on average around an
additional quarter or .25%

In general property taxes are about 1.2% of current sale price and they
increase over time. Only way to reduce the property taxes is if values fall,
you can temporarily request for a formal review

Property taxes in California are a percentage of the real estate value.

Proposition 13 declared property taxes were 
assessed their 1975 value and restricted 
annual increases of the tax 
to an inflation factor, not to exceed 2% per year.

Alameda    .88%
Alpine       .58%
Amador     .77%
Butte         .74%
Calaveras  .87%
Colusa      .79%
Contra Costa .96%
Del Norte     .74%
El Dorado .81%
Fresno        .88%
Glenn        .70%
Humboldt .62%
Imperial    .94%
Inyo          .68%
Kern         .12%
Kings       .80%
Lake        .86%
Lassen     .78%
Los Angeles.79%
Madera     .89%
Marin     .78%
Mariposa .72%
Mendocino .65%
Merced    .98%
Modoc    .72%
Mono    .68%
Monterey .78%
Napa      .82%
Nevada   .82%
Orange   .71%
Placer   1.02%
Plumas   .65%
Riverside 1.13%
Sacramento .95%
San Benito 1.00%
San Bernardino .92%
San Diego .78%
San Francisco .66%
San Joaquin 1.06%
San Luis Obispo.73%
San Mateo .69%
Santa Barbara .67%
Santa Clara .79%
SantaCruz .68%
Shasta      .76%
Sierra      .62%
Siskiyou  .68%
Solano     .97%
Sonoma    .80%
Stanislaus  1.02%
Sutter     1.02%
Tehama    .73%
Trinity    .54%
Tulare    .85%
Tuolumne  .65%
Ventura   .79%
Yolo      .93%
Yuba     .95%


Reverse Mortgage Questions Answered

Questions and the Answers about Reverse Mortgages
Q: What if I have an existing mortgage?
A: You may qualify for a reverse mortgage even if you still owe money on an existing mortgage. However, the reverse mortgage must be in a first lien position, so any existing indebtedness must be paid off. You can pay off the existing mortgage with a reverse mortgage, money from your savings, or assistance from a family member or friend.
For example, let's say you owe $100,000 on an existing mortgage. Based on your age, home value, and interest rates, you qualify for $125,000 under the reverse mortgage program. Under this scenario, you will be able to pay off ALL the existing mortgage and still have $25,000 left over to use as you wish.

Social Security and Medicare
Q: Will I lose my government assistance if I get a reverse mortgage?
A: A reverse mortgage does not affect regular Social Security or Medicare benefits. However, if you are on Medicaid or Supplemental Security Income (SSI), any reverse mortgage proceeds that you receive must be used immediately. Funds that you retain count as an asset and could impact eligibility. For example, if you receive $4,000 in a lump sum for home repairs and spend it all the same calendar month, everything is fine. Any residual funds remaining in your bank account the following month would count as an asset. If the total liquid resources (including other bank funds and savings bonds) exceed $2,000 for an individual or $3,000 for a couple, you would be ineligible for Medicaid. 
Payment Options
Q: What are My Payment Plan Options?
A: You can choose to receive the money from a reverse mortgage all at once as a lump sum, fixed monthly payments either for a set term or for as long as you live in the home, as a line of credit, or a combination of these.
Amount of Proceeds
Q:  How Much Money Can I Get?
A:  The amount of funds you are eligible to receive depends on your age (or the age of the youngest spouse when there is a couple), appraised home value, interest rates, and in the case of the government program, the FHA lending limit in Orange county California is currently $636150. If your home is worth more, then the amount of funds you may be eligible for will be based on the $636,150.00 loan limit. In general, the older you are and the more valuable your home (and the less you owe on your home), the more money you can get.
During the first 12 months after closing, a borrower cannot access more than 60 percent of the available loan proceeds. In month thirteen, a borrower can access as much or as little of the remaining funds as he or she wishes.

There are exceptions to the 60 percent rule. If you have an existing mortgage, you may pay it off and take an additional 10 percent of the available funds, even if the total amount used exceeds 60 percent.

Use of Proceeds
Q: How can I use the proceeds from a reverse mortgage?
A: The proceeds from a reverse mortgage can be used for anything, whether its to supplement retirement income to cover daily living expenses, repair or modify your home (i.e., widening halls or installing a ramp), pay for health care, pay off existing debts, cover property taxes, or prevent foreclosure.
Q: How does the interest work on a reverse mortgage?
A:  With a reverse mortgage, you are charged interest only on the proceeds that you receive. Both fixed and variable interest rates are available. Rates are tied to an index, such as the 1-Yr. Treasury Bill or the London Interbank Offered Rate (LIBOR), plus a margin that typically adds an additional one to three percentage points onto the rate you're charged. Interest is not paid out of your available loan proceeds, but instead compounds over the life of the loan until repayment occurs.

Growth Feature
Q:  If the unused balance in the HECM Line of Credit Option has a growth feature am I earning interest?
A:  No, you're not earning interest.. After the first month of your HECM loan, the principal limit increases each month thereafter at a rate equal to one-twelfth of the mortgage interest rate in effect at that time, plus one-twelfth of monthly mortgage insurance premium rate.  
Why Two Mortgages?
Q: Why did I sign two (2) Mortgages and Notes at my closing?
A: Your lender is in a first lien position and the Federal Housing Administration is in a second lien position. If your lender fails to meet its obligations under the terms of the Loan Agreement, FHA can step in and assume responsibility for the loan, so that you continue getting uninterrupted access to your funds.  Both the first and the second mortgage will be recorded with the county in which your property is located. FHA is a government backed mortgage.
Servicing Fee
Q: What is the Service Fee Set Aside?
A: The service fee set aside is the dollar amount deducted from your Original Principal Limit and serves to ensure the future payment of your monthly servicing fee.  The amount of the service fee set aside is NOT part of your outstanding balance and is NOT accruing interest.  As the service fee set aside is not part of the loan balance, the funds remaining in the service fee set aside at time of loan repayment are not subject to refund.
Q: Why am I charged a servicing fee?
A: The monthly servicing fee covers the costs associated with administering your reverse mortgage loan.  This administration includes, among other tasks, providing customer service, maintaining accurate records of your outstanding loan balance (including the interest and mortgage insurance premiums, etc) at all times, tracking your property taxes and your hazard insurance, certifying your occupancy status, issuing your statements of account, issuing and collecting payments, collecting on the loan when it becomes due, and discharging the mortgage.
Mortgage Insurance Premiums
Q: Why is there a Mortgage Insurance Premium with my HECM reverse mortgage?
A: Under the HECM program, you will be charged a mortgage insurance premium (MIP) at closing that is based on the amount of funds withdrawn during the initial year. As long as you don’t take more than 60 percent of the available funds in the first year, you will be charged an upfront MIP of 0.50 percent of the appraised value of the home. If, however, you take more than 60 percent, the upfront MIP will be 2.50 percent. On a $200,000 home, 2.5 percent is $5,000 versus $1,000 if you were paying 0.50 percent. 

You also are charged MIP on an annual basis, however this fee doesn't come out of your available loan proceeds. Rather, it accrues over time and you pay it once the loan is called due and payable. The annual premium is equal 1.25 percent of the outstanding loan balance.
Q: I elected to receive monthly payments, when will those monthly payments commence?
A: Your first monthly payments are to be sent to you the first business day of the month following your loan funding date. For example, if your loan closed at the end of May and your loan funded in June, then your first monthly payment will be issued the first business day of July.  If your loan closed in June, and your loan funded in June, then your first monthly payment will be the first business day of July.
Q: Can I change the type of payment plan I elected at closing?
A: If you have a Home Equity Conversion Mortgage (HECM), and your loan documents allow for a payment plan change, then yes you can change your payment plan. This means that you can change from monthly payments to a Line of Credit, or vice versa.  There is usually a fee associated with changing you payment plan. NRMLA strongly advises that you discuss the payment plan change options that may be available, and any possible fee for changing your payment plan, with your reverse mortgage servicer.
Q: What if my loan servicer does not send my requested funds in a timely manner?
A: Your loan servicer is to send your requested Line of Credit funds within five (5) business days of receiving your request for funds.  If you have scheduled monthly payments, then these funds are to be disbursed by the first business day of each month.  If your servicer does not disburse your funds within these timeframes, FHA can fine your loan servicer and make them pay you an extra 10% of the payment that is due to you, plus interest on that sum for each additional day the disbursement is delayed.  This fine shall not exceed $500 for each instance of late disbursement.  This fine may not be added to your loan balance.
Q: Can I make a partial prepayment to my reverse mortgage account?
A:  Most reverse mortgages will permit a partial prepayment to your reverse mortgage account without penalty

Interest charges and your income taxes
Q: Can I deduct the interest charges for income tax purposes?
A: Interest charges can only be deducted once those interest charges have been paid.  Generally you are not making  payments to your reverse mortgage, you can't write them off for income tax purposes.  If you have made partial prepayments, then you must be assured that your prepayments have been applied to your interest charges 

Q: What are “Occupancy Certificates”?
A: Reverse mortgages require you to periodically certify that you continue to reside in the property as your primary residence.  
Property Taxes
Q: Do I have to pay my property taxes?
A: Yes, it is your responsibility to ensure that your property taxes are paid in a timely manner. 
Q: What is a “Tax Set Aside”?
A: You may choose to have your reverse mortgage servicer pay your property taxes on your behalf.  Property taxes can change as time goes on, your loan servicer will work with you to keep current on any increases in property tax or special assessments.These funds do not become part of your loan balance until which time the funds are actually disbursed.
Q: Can I participate in a property tax deferral program?
A: You may only participate in a property tax deferral program if the lien created by your deferral program is subordinate to your reverse mortgage loan.  
Q: May I participate in a tax exemption program?
A: Yes, tax exemption programs are permitted under the reverse mortgage program.  
Hazard Insurance
Q:  Am I required to maintain Hazard Insurance on my mortgaged property?
A:  Yes.  You must maintain Hazard Insurance on your property in an amount that is equal to at least 100% of the insurable value of the improvements at the time of your loan closing.  You provide loan servicer with a copy of your Hazard Insurance policy and renew upon expiration. Failure to maintain adequate Hazard Insurance on your property is considered a DEFAULT in the terms of your Loan Agreement and may be grounds for calling your loan due and payable.
Q: What is an “Insurance Set Aside”?
A: You may choose to have your reverse mortgage servicer pay your Hazard Insurance premiums on your behalf.  This can be set up similar to an impound but as fire and hazard charges may change annually it is your responsibility to make certain the home is covered and your servicer has the copy of the policy
Flood Insurance
Q: Do I have to carry Flood Insurance in addition to my Hazard Insurance?
A:  If your property is in an area that has been identified by FEMA as having special flood hazards, then you must maintain Flood Insurance in compliance with the Flood Disaster Act of 1973.  I
Loan Assignment
Q: Why have I received a notice that my loan is being assigned to HUD?
A: Under the Home Equity Conversion Mortgage (HECM) plan, your loan servicer may assign your loan to HUD when your outstanding loan balance reaches 98% of the maximum claim amount. HUD will continue to administer your HECM reverse mortgage.  
Q: What is a maturity event?
A:  A maturity event is any event which may cause your reverse mortgage to be called due and payable.  Maturity events include:
1.        All borrowers have passed away
2.        All borrowers have sold property or conveyed title of the property to a third party
3.        The property is no longer the principal residence of at least one borrower for reasons other than death
4.        The borrower does not maintain the property as principal residence for a period exceeding 12 months because of physical or mental illness
5.        Borrower fails to pay property taxes and/or insurance and all attempts to rectify the situation have been exhausted
6.        The property is in disrepair and the borrower has refused or is unable to repair the property.
Q: Can I pay off my reverse mortgage before a maturity event is reached?
A: Yes.  You can pay your reverse mortgage in full at any time during the term of your reverse mortgage.
Q: How long will my estate have to pay off the reverse mortgage once it has been called due and payable?
A: The reverse mortgage is to be paid in full once it has been called due and payable.  You and/or your estate must work closely with your loan servicer to ensure your reverse mortgage is paid in full in a timely manner.  If arrangements to pay the reverse mortgage are not made with your loan servicer, then your loan servicer may proceed with foreclosure between 30 days and six months from when your loan has been called due and payable.  If you or your estate are actively working to either refinance your property or sell your property so as to satisfy your reverse mortgage, then foreclosure maybe forestalled.  
Non-recourse Provisions
Q: What does “non-recourse loan” mean?
A: Most reverse mortgage loans are considered “non-recourse loans."  This means that you can never owe more than the value of your home at the time you or your heirs sell your home to repay your reverse mortgage.  If your loan is a Home Equity Conversion Mortgage ("HECM"), the reverse mortgage debt may be satisfied by paying the lesser of the mortgage balance or 95% of the current appraised value of the home.