Disbursements are payments made by the reverse mortgage lender to you, the borrower. Your funds can be disbursed in many different ways depending on the type of reverse mortgage you choose and the lender in question.
The Department of Housing and Urban Development, or HUD, is the parent organization of the FHA. HUD administers federal aid to housing agencies around the country, as well as to the FHA.
A counseling agent works within a counseling agency and provides homeowners with mandatory counseling before they can apply for a reverse mortgage.
Borrowers are required to complete counseling before they can apply for a reverse mortgage through the FHA. A counseling agency employs counselors who work with borrowers.
The Consumer Financial Protection Bureau, or Bureau of Consumer Financial Protection, is an agency of the US federal government tasked with providing consumers with information to aid in their protection while dealing in the financial sector. The agency was established in 2010 with the Dodd-Frank Wall Street Reform and Consumer Protection Act.
An adjustable rate mortgage, or ARM, differs from a fixed rate loan in that the interest rate you’re charged can change over time. With an adjustable rate reverse mortgage, you’ll find two varieties – loans that can adjust once per year, and loans that can adjust monthly.