[Fredslist] Question re Reverse Mortgage

[bonnielink at optonline.net]

I have a client who has a reverse mortgage who has been told that the out-of-state (and now out-of-business) abstract company that did the notary closing did not record the second HUD mortgage.  At the request of the insurer, she re-signed the HUD mortgage TWICE already, and now they are asking her for the third time.  While reviewing her documentation, I didn't see a copy of the counseling certificate and she insists she never had counseling.  I know that an applicant is not qualified for a HUD backed reverse mortgage unless they attend a counseling session and that a certificate attesting to the successful completion of the counseling by a qualified counselor must be submitted to the lender.  My question is:  What, if any, are the ramifications to the lender if they failed to notify the potential borrower and obtain the certificate?  Thanks Gotham, and a happy and healthy new year to all who are celebrating....Bonnie Bonnie Link, Esq.bonnielink at optonline.netNOTE!  NEW ADDRESS as of May 25, 2012Kardisch, Link & Associates, PCONE Old Country Road, Suite 347Carle Place, NY 11514Tel: 516-255-4160Fax:  516-255-4163
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