Established in 1997, the National Reverse Mortgage Lenders Association (NRMLA) ”is the national voice of the reverse mortgage industry, serving as an educational resource, policy advocate and public affairs center for lenders, as well as related professionals…Over 90% of the reverse mortgages in the United States today are originated or purchased by NRMLA members, and over 95% of the reverse mortgages originated in the United States at this time are home equity conversion mortgage (“HECM”) loans insured by the FHA.”
NRMLA membership is completely optional for any reverse mortgage lender. NRMLA’s goal is to educate borrowers of the potential benefits and drawbacks of reverse mortgage loans. They also train lenders to be considerate of borrower’s needs and advise policy makers on issues in the reverse mortgage industry. NRMLA membership includes benefits such as webinars, newsletters and other informational resources regarding current reverse mortgage news and other topics that are important to seniors.
Many seniors enter retirement without the funds necessary to live the retirement lifestyle they had dreamed of. Reverse mortgage loans can be a valuable tool for helping seniors plan a more secure retirement. A reverse mortgage is a unique, Federal Housing Administration (FHA)-insured loan that allows eligible homeowners age 62 years and older to convert a portion of their home’s equity into tax-free1 funds without having to pay monthly mortgage payments.2 The loan generally does not have to be repaid until the last homeowner on title passes away or no longer lives in the home as their primary residence. At that time, the estate can either repay the balance of the reverse mortgage loan and keep the home or choose to sell the home to pay off the outstanding balance. Any remaining equity is inherited by the estate. If the home sells for less than the balance of the reverse mortgage loan, the estate will not be personally liable for the difference.
NRMLA strives to provide the most ethical, honest service possible as shown by their “Borrow with Confidence” campaign. When lenders join NRMLA, not only do they receive timely, industry specific resources, but they also commit to treating their clients in an “honorable and ethical manner” by following a code of ethics. This code of ethics includes abiding by such values as:
- “Fairness- NRMLA members shall treat consumers with respect and dignity, and in a manner that is fair, reasonable, and as they would want to be treated.
- Confidentiality- NRMLA members shall appropriately respect, protect, preserve and safeguard the privacy of and confidentiality of information obtained from and about consumers.
- Integrity- NRMLA members shall act with integrity, adhering to both the letter and the spirit of this Code of Ethics, and appropriately and timely disclosing to consumers potential conflicts of interest.
- Competence- NRMLA members shall provide services to consumers in a competent manner, acquiring and maintaining necessary and appropriate knowledge, skills, and experience to do so, and referring consumers to others with such knowledge, skills and experience when they are unable to do so.
- Diligence- NRMLA members shall provide services to consumers with diligence and due care, promptly, thoughtfully, in a manner considerate of the interests of consumers and fully in compliance with all applicable legal and regulatory requirements.
- Professionalism- NRMLA members’ conduct shall reflect positively on NRMLA, the profession and the industry.”
In addition, there is a comprehensive list of rules that NRMLA members are required to follow such as, “NRMLA Members shall not, directly or indirectly, solicit or communicate with consumers through false or misleading or deceptive or unfair communications or advertisements or in any manner inconsistent with applicable law” and “NRMLA Members shall accurately describe both the costs and benefits of the products and services presented to consumers” among many others.
By choosing a NRMLA member to originate your loan, you are choosing the added protection that NRMLA strives to offer reverse mortgage loan consumers. Borrowers can rest easier knowing these lenders value their clients and will uphold the NRMLA Code of Ethics.
If you are considering a reverse mortgage loan, click here to request our free Educational DVD and Reverse Mortgage Handbook or call 866 751.2606 to find out if a reverse mortgage loan is right for you. For more information regarding NRMLA, please see their official website: http://www.nrmlaonline.org/