MGC’s servicing division possesses a wealth of experience in the US Department of Housing and Urban Development ‘s (HUD) FHA reverse mortgage product. The HECM is a loan that allows seniors age 62 or older to use the equity accumulated in their homes to supplement their existing income creating the opportunity for them to remain in their home. The concept of Home Equity Conversion Mortgages centers on seniors being able to borrow against the equity in their home without having to repay the borrowed amount while the loan remains in good standing. By using the equity as additional income, seniors can make repairs, pay taxes and insurance, payoff other debt, pay for health care, take a vacation, pay for day to day expenses or use the money for any other purpose they choose. This product allows for fixed and variable rate loans. HECMS provide flexible payment plan options including payment of funds in lump sum, line of credit advances, monthly income for a fixed term, monthly income for as long as the borrower lives in the home, or a combination of line of credit advances and monthly income payments. Repayment is not required until the last remaining borrower passes away, sells the house or no longer permanently lives in the property. Even though Reverse Mortgages do not require payments from the borrowers, there are criteria placed upon the borrower in order for the Reverse Mortgage loan to remain in good standing. The requirements placed upon the loan are:

• The property must remain the principle residence of at least one of the borrowers
• The borrower must not reside outside of the property due to illness for a period exceeding 12 months
• The borrower(s) may not sell or convey the title of the property
• The borrower is responsible for the upkeep of the property with any required repairs completed and the property kept in good condition
• The borrower is responsible for the payment of Taxes and Insurance on the property and must not allow taxes to go delinquent or insurance coverage to lapse as well as adhere to all related covenants and conditions of the mortgage

MGC has specific full cradle to grave servicing expertise for the reverse loan product and has been a servicer for HUD on its HECM portfolio for over five years. MGC’s servicing functions include reviewing assignments and title, making payments to the borrowers (scheduled and unscheduled), annual occupancy re-certifications, tax and insurance monitoring, payment plan modifications, payoff processing, satisfaction of liens, working loss mitigation options such as family sales, deeds in lieu, and compromised sales, and managing the foreclosure process and bankruptcy filings.