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Are you considering a reverse mortgage and curious about who handles the servicing? Reverse mortgage servicing is a crucial aspect of this financial tool, ensuring smooth operations and timely disbursements. Let’s explore the key players involved in reverse mortgage servicing and how they contribute to borrowers’ peace of mind.

Understanding Reverse Mortgage Servicing:

Reverse mortgage servicing entails managing daily tasks like disbursing funds, managing accounts, and handling borrower inquiries. Originating lenders typically set up the loan, but servicing may transfer to specialized companies called loan servicers.

Key Providers of Reverse Mortgage Servicing:

  1. Original Lenders: Many reverse mortgage lenders also handle servicing in-house. Thus, these lenders have dedicated teams to manage borrower accounts, process payments, and provide customer support throughout the life of the loan.
  2. Specialized Servicing Companies: In some cases, the original lender may transfer servicing rights to specialized companies that focus solely on reverse mortgage servicing. Hence, these companies are equipped with the expertise and infrastructure to efficiently manage reverse mortgage portfolios and provide high-quality customer service.
  3. Government Agencies: For reverse mortgages insured by the Federal Housing Administration (FHA), the U.S. Department of Housing and Urban Development (HUD) oversees servicing guidelines. FHA-approved lenders may service reverse mortgages directly or work with approved servicing agents to ensure compliance with HUD regulations.

Benefits of Professional Reverse Mortgage Servicing:


Servicing companies possess specialized knowledge and experience in managing reverse mortgages, ensuring compliance with regulatory requirements and industry best practices.

Customer Support:

Specifically, professional servicers offer dedicated customer support to address borrower inquiries, provide assistance with account management, and ensure a positive borrower experience throughout the loan term.

Timely Disbursements:

Generally, servicing companies are responsible for disbursing funds to borrowers according to the terms of the reverse mortgage agreement, ensuring timely and accurate payments to meet borrowers’ financial needs.

Choosing the Right Servicer:

When considering a reverse mortgage, it’s essential to inquire about the servicing arrangements and the reputation of the servicing provider. Borrowers should feel confident in their servicer’s ability to manage their loan effectively and provide responsive customer support when needed.