What is the right coverage of reverse mortgage title insurance policy?


In general, the reverse mortgage title insurance amount cannot be less than

  • the fair market value of the home for owner's title policy;
  • the mortgage loan principal for lender's title coverage.

A combined owner and lender reverse home loan title policy should be provided for the greater of the abovementioned amounts.

However, states may have differing title rules on reverse mortgage titling issues.

In general, though, the larger the loan or more expensive the property, the higher the cost on the title insurance policy for reverse mortgage loans.

Title insurance on a reverse mortgage loan is not so important.

The title insurance costs on a reverse mortgage may not be the greatest concern of seniors taking out one. You have owned the home for life - what title issues could possibly arise? Perhaps identity fraud and forgery are the largest possible title issues for senior homeowners to arise, but this is valid for other homeowners, as well. There seem to be other more looming issues than reverse mortgage title policy charge.

Some advice on reverse mortgages rather than on titling and ownership transfer issues:

Another area of concern for the elderly is that reverse mortgages could be targeted by scam artists. With the downfall of the era of subprime adjustable rate home loans, it seems that reverse mortgage fraud and scams may be on the rise.

Consider taking a reverse mortgage with a reputable bank (Wells Fargo or a similar popular bank should do) rather than with a private mortgage company and ask questions on your obligatory reverse mortgage counseling session.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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