1. AWARENESS

Borrower learns about reverse
mortgages from a news article, ad, direct mail, word-of mouth, etc.

2. ACTION
If necessary, borrower seeks additional information by contacting a AMC-America's Mortgage Company, or NRMLA

3. COUNSELING

Borrower seeks counseling from a HUD-approved counseling agency. Counseling
is mandatory regardless of which reverse mortgage product a borrower chooses to get. The counseling
is usually conducted face-to-face, although telephone counseling is becoming more prevalent. The counselor provides supplemental information on reverse mortgages, determines whether the borrower is eligible to get a reverse mortgage, and discusses other options that may be available to the borrower to assist them with their daily living.

Consumer fills out application for reverse mortgage and selects payment option: fixed monthly payments, lump sum payment, line of credit, or a combination of these. Lender discloses to consumer the estimated total cost of the loan, as required by the federal Truth in Lending Act. Lender collects money for home appraisal. Consumer provides lender with required information, including photo ID, verification of Social Security number, copy of
deed to home, information on any existing mortgage(s) on property, and counseling certificate.

5. PROCESSING

Lender orders appraisal, title work, lien payoffs, etc. An appraiser comes to your home.

The appraiser is responsible for assigning a value to the home and determining the physical condition of the property. If the appraiser uncovers structural defects that require repair, the borrower must hire a contractor to complete the repairs after the reverse mortgage closes.