Reverse Mortgage Loan Compliance Guide Reverse Specific Required Content Checklist
Reminder: Content In Ad Reverse Mortgage Loan
Tax Free/ Tax Related
Please submit all Reverse marketing and compliance approvals to reversemarketing@fairwaymc.com
Required Change Or Additional Language “Reverse Mortgage Loan” must be used often in place of “Reverse Mortgage.” Particularly in prominent headings and the first time it is mentioned in an ad. According to the FTC, “reverse mortgage loan proceeds are usually not taxable” (emphasis added). For that reason we only say: “The loan proceeds are usually tax free.*” This requires an additional disclaimer as follows (disclaimer needs to be “Clear and Prominent” and in a font that can be read by seniors: *This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation.
No Monthly Mortgage Payments
Correct Loan Officer Titles
If this statement is made, the ad must say “Borrower is still required to pay property taxes, homeowner’s insurance, and maintenance (and HOA fees, if any).” It is not permissible to simply state “no monthly payments.” Describing loan officers as experts or counselors acting in the customer’s interest, and not sales people, is prohibited. Acceptable Titles Include (depending on your role at Fairway): Loan Officer; Mortgage Loan Originator; Reverse Mortgage Planner; Reverse Mortgage Specialist; Senior Loan Officer; Branch Manager; Area Manager; Sales Manager; Mortgage Advisor, Retirement Mortgage Specialist and Certified Reverse Mortgage Professional (If certified by NRMLA) (NOTE: Compliance maintains a list of acceptable and prohibited titles – when in doubt please contact legal@fairwaymc.com).
FHA-Insured
If details are given about FHA insurance, be accurate and indicate that it insures that payments due the consumer post-closing will be made if the lender fails to do so and nothing more.
Description of Loan Qualification Factors
Any description of loan qualification factors must be accurate. There are minimal credit and property requirements necessary to qualify for a reverse mortgage.
Dream Life Concept, Vacation Images, Luxury Purchases
Avoid suggesting that the consumer use reverse mortgage loan proceeds for extravagant purposes (e.g., trip to Europe or RV purchase).
Interest Rates and Fees
Disclosure of interest rates and fees may trigger the requirement to disclose a correctly calculated Annual Percentage Rate (APR).
Suggesting Use of Loan Proceeds to Eliminate Existing Debt
Do not state that the borrower will be debt-free after getting a reverse mortgage. Suggesting that the borrower replace one debt with another is not a permissible advertising practice. The exception is that existing mortgages secured by the residence must be repaid upfront.
Income
A reverse mortgage loan or growing credit line is not considered income. Use words such as cash flow, reserves, loan proceeds, or money.
Down Payment
Add the following disclaimer: The required down payment on your new home is determined on a number of factors, including your age (or eligible non-borrowing spouse’s age, if applicable); current interest rates; and the lesser of the home’s appraised value or purchase price.
Never Owe More Than the Home is Worth
Add the following disclaimer: There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.
Financial Advice/ Financial Related
When financial language is used add the following disclaimer: This advertisement does not constitute financial advice. Please consult a financial advisor regarding your specific situation.
Reverse Mortgage Loan Compliance Guide Red Flag Statements
Avoid making statements (which may be misleading, deceptive or inaccurate), such as the following: • “I show you how to use a mortgage to create wealth.” • “Training consumers in aggressive debt elimination strategies. • “I look out for your best interest.” • “Helping people make smart choices about money.” • “Delete Bad Debt.” • “I am here to help you achieve your long term & short term financial goals.” • “Debt Eliminator.” • “Long-term financial security and wealth accrual.” • “I help my clients achieve financial freedom.” • “Helping you climb the mountain to financial freedom.” • “I provide accurate financial advice.” • “I get my clients the best rate.” • “I am NMLS licensed, tested, and bonded!” • “Lowest Cost and Rates.”
• “My major objective when working with clients is to obtain the best debt strategy to create long term wealth.” • “Helping with the rest of your financial plan. • “Helping secure a person’s future, eliminating debt, and becoming more financially stable.” • “Would you like to be debt free?” • “We will help you integrate the mortgage loan you select into your overall short and long-term financial and investment goals, including payment and cash flow management and equity building objectives.” • “I help homeowners achieve a stress-free financial life.” • “I do equity management.” • “I integrate my client’s mortgage into their overall financial plan.” • “Make no mortgage payments!” • “Counselor and Debt Eliminator.” • “You will be mortgage free!”
• “Debt Elimination.”
• “With a reverse mortgage, you make NO MORTGAGE payments for life!!”
• “We have the Lowest Closing Costs and Rates in the Mortgage Industry.”
• “No mortgage payments for life!”
• “My advice is FREE!” • “Ability to Build Wealth.” • “Close in as little as 8 days.”
• “Strategic Equity Equals Empowered Wealth.” • “Having a reverse mortgage gives you peace of mind.”
Reverse (Full Disclosure) Copyright©2022 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity. [Insert state required disclaimer]
Reverse Mortgage Loan Compliance Guide
Oregon Reverse Disclaimer: Oregon Reverse Disclaimer (Per Oregon clearly and conspicuously include the disclaimer meaning in larger type than the surrounding text or in a type, color or font that contrasts with the surrounding text of the same size or set off from surrounding text by symbols or other marks in a manner that draws attention; or spoken in a volume and cadence that is sufficient to enable a reasonable person to hear and understand.) Copyright©2022 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Youngest borrower must be at least 62 years old. Your monthly reverse mortgage advances may affect your eligibility for some other programs. At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to you and you may need to sell or transfer the property to repay the proceeds of the reverse mortgage with interest from your assets. We will charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which we will add to the balance of the reverse mortgage loan. The balance of the reverse mortgage loan grows over time and interest will be charged on the outstanding loan balance. You retain title to the property that is the subject of the reverse mortgage until you sell or transfer the property and you are therefore responsible for paying property taxes, insurance, and maintenance and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may subject the property to a tax lien or other encumbrance or to possible foreclosure. Interest on reverse mortgage is not deductible to your income tax return until you repay all or part of the reverse mortgage loan. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity. [Insert state required disclaimers if applicable].
Reverse short disclaimer - this cannot be used if the ad says anything more than “we offer reverse mortgage loans” Copyright©2022 Fairway Independent Mortgage Corporation NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. Materials are not from HUD or FHA. Not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. Other restrictions and limitations may apply. Equal Housing Opportunity [Insert state required disclaimer]
Shortened Disclaimer not intended for public use: Copyright©2022 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. Distribution to general public is prohibited. All rights reserved. Equal Housing Opportunity. [Insert State required disclaimer]
Reverse Mortgage Loan Compliance Guide Advertising Compliance Standards – All Material
The following Compliance Standards will apply and need to be included on all marketing collateral: • Fairway Independent Mortgage Corporation Logo and Company Name • Company NMLS# • Equal Housing Opportunity Logo • Loan Originator’s NMLS# • Loan Originator’s Title • Branch Address, if certain states require it or if ad is Branch Specific • State Required disclaimers • AZ License #BK-0904162 • Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, License No 41DBO-78367. Licensed by the Department of Business Oversight under the California Financing Law, NMLS #2289. Loans made or arranged pursuant to a California Residential Mortgage Lending Act License • Georgia Residential Mortgage Licensee #21158 • In IL any electronic or print media ads appearing in IL shall include in a clear & conspicuous manner: The NMLS Consumer Access homepage (www.nmlsconsumeraccess.org). For electronic media, the licensee shall use the phrase “For licensing information, go to: www.nmlsconsumeraccess.org.” • MA Mortgage Broker and Lender License #MC2289. MA Loan Originator License #MLO[insert LO’s NMLS #] • Licensed by the NJ Department of Banking and Insurance • NY- Licensed Mortgage Banker- N.Y.S. Department of Financial Services • Licensed Nevada Mortgage Lender • Rhode Island Licensed Broker & Lender • Virginia: Fairway Independent Mortgage Corporation NMLS Entity ID #2289 (http:// nmlsconsumeraccess.org/EntityDetails.aspx/company/2289) • Testimonials – You must have written record of consumer permission to use their image or testimonial. The permission must be reconfirmed at reasonable intervals. If the consumer has died their testimonial may not be used. • Fictional Stories – These require an additional disclaimer (at the beginning if a lengthy piece or at the end if it is a short piece): NOTE: Story is for illustration purposes only. The persons depicted herein are fictional and any resemblance to actual persons is a coincidence. • Email Campaigns must include the following sentence above the Copyright disclaimer in the email: *This is a Fairway Independent Mortgage Corporation promotional email.*
Reverse Mortgage Loan Compliance Guide Advertising Compliance Standards – All Material
Content In Ad
Required Change Or Additional Language
Reverse Marketing Requests
All marketing requests and collateral including, but not limited to, brochures, flyers, advertisements, radio scripts, presentations, yard signs, websites, videos and web banners must be sent to the Reverse Marketing Department (reversemarketing@fairwaymc.com)
On-Demand Marketing – Total Expert
All current and on-demand collateral located on FairwayMyWay is compliant and approved by our legal department on www.TotalExpert.net and can be downloaded with your information instantly. All Reverse Marketing material is kept as a reference to help provide additional ideas and marketing pieces, for everybody. If you are considering doing any marketing such as a radio commercial, seminar, or newspaper ad please contact reversemarketing@fairwaymc.com to see what others have created to help save on time on creating additional new pieces.
Fairway Name Standards
Fairway Independent Mortgage Corporation is our licensed name. “Fairway” can stand alone after it has been previously spelled out in the marketing piece. For instance, “call Fairway today” is acceptable after “Fairway Independent Mortgage Corporation” has been used previously in the same piece. The Fairway Independent Mortgage Corporation Name and Logo should always be the most prominent logo on any marketing collateral and/or advertisement. There should never be a misrepresentation of who the Lender is, or give an illusion that an individual or branch is the Lender and not Fairway Independent Mortgage Corporation.
Typography, Color Usage, Logo Uses & Restrictions
Please review the Fairway Brand Standards for a more detail usage of the color and logo restrictions. The Fairway brand utilizes two font families that complement the Fairway Logo. The combination of Georgia and Museo Sans represents Fairway’s friendly, colorful and fun brand, while also retaining consistency throughout all marketing materials
Reminder:
Please submit all Reverse marketing and compliance approvals to reversemarketing@fairwaymc.com.
For internal use only. Copyright©2022 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-9124800. Distribution to general public is prohibited. All rights reserved.