Top 5 Mistakes Brokers Make on Reverse Mortgage Files (and How to Avoid Them)

Even the most experienced mortgage brokers can run into file issues that delay or even kill a reverse mortgage deal. The good news? Most of these mistakes are preventable when you have the right reverse mortgage wholesaler partner in your corner.

At Trust Lending, we help brokers avoid costly delays by providing guidance, checklists, and compliance support from start to finish. Here are the top 5 mistakes brokers make on reverse mortgage files—and how to make sure you never fall into these traps.

1. Incomplete or Inaccurate Applications

Missing borrower documentation, unsigned forms, or incomplete credit reports can stall a loan before it even reaches underwriting.

How to Avoid It:

• Use our Reverse Mortgage Broker Checklist before submission.

• Double-check borrower signatures, income docs, and property information.

  
  

At Trust Lending, we review files early to catch these issues before they cause problems.

2. Overlooking Investor and FHA Guidelines

Each investor and HUD rule has unique requirements. Submitting a file that doesn’t meet these standards leads to unnecessary conditions or denials.

How to Avoid It:

• Review Product Guidelines for each reverse mortgage product.

• Use our scenario desk for complex files before submission.

  
  

Our team helps you navigate FHA, HUD, and proprietary product overlays with ease.

3. Incorrect Property Vesting or Title Issues

Trusts, married couples, or properties with liens often create confusion if not documented correctly.

How to Avoid It:

• Confirm borrower names and trust agreements are accurate.

• Ask our team about title vesting requirements before submission.

  
  

We work closely with title companies to ensure a smooth process for every file.

4. Compliance Missteps

HUD counseling, financial assessment requirements, and LESA calculations can become stumbling blocks without guidance.

How to Avoid It:

• Use our Compliance Resources for checklists and templates.

• Lean on our compliance team for pre-submission reviews.

  
  

With Trust Lending, compliance becomes simple—not stressful.

5. Lack of Borrower Education

Reverse mortgages can be confusing for homeowners. If clients don’t fully understand terms and benefits, they may hesitate or drop out mid-process.

How to Avoid It:

• Use our Borrower Education Materials.

• Walk borrowers through sample scenarios using our product comparison tools.

  
  

We provide bilingual materials and one-on-one support to help educate your clients.

Clean Files = Faster Closings

When brokers avoid these five mistakes, they experience fewer conditions, faster closings, and happier clients. Trust Lending provides the tools, training, and support you need to submit clean, compliant files every time.

Avoid Costly Mistakes

Partner with Trust Lending for Faster Closings

Get Started Today!