Hello,

I wanted to let everyone know about what we decided to do.  Due to the uniqueness of a reverse mortgage, there is very little out there in the way of help, let alone laws that outline what we as a title insurer, are required to do.

We made a decision to charge the homeowner solely on the loan amount at the time of closing, which is the Principal Limit. This is the the amount advanced at closing (including any debt being paid/closing costs) plus the remaining "credit line". Because we are required to print 150% of the maximum claim on the front of the deed of trust, we are including an affidavit with the deed of trust that specifically states what the amount of debt incurred is at the time of recording.  With the affidavit, the homeowner can avoid paying a larger tax for money which they may never use.  

To be clear, this decision was only made for properties located in Maryland. We confirmed with our underwriters and  investors.

Thanks,

Jon