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#2231728 - 02/26/20 02:54 PM Reverse Mortgage and Lender Credits
CMSIngenue Offline
100 Club
Joined: Jan 2013
Posts: 148
Can you reduce lenders credits on a reverse mortgage? TRID is not applicable to reverse mortgages. And I cannot find anything that would prohibit this. (Lender Credits are being reduced because closing costs are coming in lower than expected)

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RESPA
#2231738 - 02/26/20 03:53 PM Re: Reverse Mortgage and Lender Credits CMSIngenue
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,352
Galveston, TX
Since reverse mortgage are covered under RESPA. Lender credits under the old RESPA guidelines were no different as it is an increase in closing costs.
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#2231746 - 02/26/20 04:55 PM Re: Reverse Mortgage and Lender Credits CMSIngenue
CMSIngenue Offline
100 Club
Joined: Jan 2013
Posts: 148
So if there is a lender credit disclosed upfront to cover all closing costs but the closing costs come in much lower at the closing table, lender credits cannot be reduced to meet guidelines for insurability on a HECM? We cannot provide cash back to the borrower.

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