• Nichole Fox

Consumer Safeguards for Reverse Mortgage Loans


It is natural for many seniors and their family members to be somewhat apprehensive when they encounter something that sounds like it could be too good to be true. If it is a proposition that they have never heard of, they may approach the idea with some skepticism.


However, you can rest assured that the government has put in place many safeguards to ensure that we do our job right and you and your family fully understand how a reverse mortgage works before you enter in a reverse mortgage transaction.

The government requires all Reverse Mortgages to have additional safeguards in place in order to protect seniors. These include the following:

  • Counseling: All reverse mortgage applicants are required by the U.S. Department of Housing and Urban Development (HUD) to undergo third party counseling. Freedomstar Financial encourages this counseling so that you feel 100% comfortable with the process and understand all of your options.

  • No Prepayment Penalty: No additional costs are incurred, should you choose to repay the loan early.

  • Non-Recourse Loan: You are protected in the event that home prices begin to fall. You can rest assured that you will never owe the bank more on the loan than the house is worth when it is time to pay back the loan.

  • HUD Fee limitations: A combination of Federal statutes and HUD mandates control how Reverse Mortgage Rates are determined, and what fees can be charged to the consumer. The loan origination fee is regulated by the U.S. Department of Housing and Urban Development (HUD). Other reverse mortgage costs may vary among creditors and loan types. 

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 All Rights Reserved. We are not affiliated with any government agencies, including the VA, FHA, or HUD.   CA - Loans will be made or arranged pursuant to Bureau of Real Estate License #01984665; CO Mortgage Company Registration 100054512, Regulated by the Division of Real Estate; Florida MBR License #2065. GA Residential Mortgage Licensee; Mortgage Lender License #70335. Regulated by the Bureau of Financial Institutions, Virginia Mortgage Lender License and Mortgage Broker License #MC-7043.  Click on these links to access our Privacy Policy. Licenses, and NMLS Consumer Access - NMLS #1439059. This offer is intended for residents of CA, CO, FL, GA, TX, and VA only.

Freedomstar Financial, Inc. | 111 Deerwood Drive, Ste 200 | San Ramon, CA | 94583
518 N. Chelton, Ste 200 | Colorado Springs, CO | 80909

*Product offered is a loan and lender will place a lien on subject property. Borrower is responsible for paying property taxes, homeowner's insurance and home maintenance. Loan is subject to foreclosure for failure to pay taxes and insurance to maintain the property and to comply with loan terms. Loan Officers' primary objective is to provide a loan to the consumer. Individuals portrayed in photography are not actual borrowers.